Freddie Mac Extends Mortgage Relief To National Guard Engaged In Hurricane Katrina Operations
September 15, 2005
Reminds Servicers to Provide SCRA Protections to Active Duty Federal Service Personnel
McLean, VA – Freddie Mac (NYSE:FRE) today announced its 2,300 mortgage servicers to extend immediate relief to all National Guard members on state duty involved in Hurricane Katrina recovery operations. The servicers are required to make available mortgage relief comparable to the relief that is already available to other members of the armed forces under the Servicemembers Civil Relief Act. One of the nation's largest investors in residential mortgages, Freddie Mac relies on a network of lenders, known as servicers, to collect and process monthly payments on Freddie Mac-owned loans.
"We're making this announcement so our servicers know we want them to provide every possible measure of financial relief to the brave men and women of the National Guard who are saving lives and maintaining order in New Orleans, Biloxi, Gulfport and the other communities shattered by Hurricane Katrina," said Richard F. Syron, Freddie Mac's chairman and CEO.
SCRA provisions protect active duty service personnel from foreclosure and interest rates in excess of six percent. However, National Guard members are not covered unless they are called to state duty in response to a national emergency declared by the President of the United States. Until such a declaration is made Freddie Mac is pro-actively instructing its servicers to give National Guard personnel the same SCRA credit protections anyway.
Freddie Mac is also reminding its servicers to ensure that these SCRA protections are being made available to service members covered by that law: the United States Army, United States Navy, United States Air Force, United States Marine Corps and United States Coast Guard as well as members of the armed forces reserves, National Guard, and officers of the United States Public Health Service.
Local firemen, police, and other first responders who live in the storm-affected areas and have Freddie Mac-owned loans are covered by Freddie Mac's September 8 announcement that suspended their September, October and November mortgage payments and provided possible extended relief for up to 12 months.
For more information borrowers should contact their mortgage servicer for an assessment of their individual circumstances and the most suitable relief option. Borrowers can also get more information about mortgage workouts and avoiding foreclosure by visiting www.FreddieMac.com.