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1.5.3.1 Mandates to Servicers

Significant Law Change

Freddie Mac132 authorizes its mortgage servicers, after a natural disaster, to take certain actions, but it only mandates the following specific borrower protections:

  • ● Suspend all foreclosure sales beginning on the date that FEMA declared the area to be an Eligible Disaster Area and lasting through December 31, 2017, unless the property was identified as vacant or abandoned prior to the disaster.133
  • ● Suspend post foreclosure evictions in areas impacted by Hurricane Harvey until further notice.134
  • ● Suspend all credit reports about borrowers who are participating in a disaster-related forbearance plan, repayment plan, or Trial Period Plan to the credit repositories. Freddie Mac Single-Family Seller/Servicer Guide § 8404.5(a).
  • ● Do not assess late charges if the borrower is on a forbearance plan or paying as agreed on a repayment plan. Freddie Mac Single-Family Seller/Servicer Guide § 8404.4(d).

Footnotes