What is Freddie Mac doing to help ensure homeowners can remain in their homes during this critical time?
As stated, we’re taking action to assist Servicers in helping homeowners in a variety of ways, including:
§ Providing mortgage forbearance for up to 12 months,
§ Waiving assessments of penalties and late fees,
§ Suspending all foreclosure sales until May 17, 2020,
§ Offering loss mitigation options that lower payments or reinstate the mortgage to “current” status while keeping payments the same after the forbearance period.
What do we do if a customer (homeowner) becomes ill with COVID-19?
§ Any financial hardship that impacts the homeowner’s ability to make mortgage payments as a result of COVID-19, including illness to the homeowner or a dependent, is an eligible hardship that would qualify them for forbearance and/or consideration for other Freddie Mac loss mitigation offerings.
Do I still need to send interest payments for homeowners impacted by COVID-19?
Servicers must complete their normal remittance requirements, including advancing of scheduled interest payments until the loan becomes inactivated.
Are there any COVID-19-related servicing measures available to assist homeowners who may be facing hardships due to the pandemic?
As announced in the Guide Bulletin and as updated bulletin under direction of Federal Housing Finance Agency (FHFA) and in alignment with Fannie Mae, the following temporary servicing measures will be available to support you in your efforts to assist impacted homeowners:
§ Credit reporting requirements
§ Forbearance plans*
§ Loan modifications
§ Foreclosure moratorium
§ Acceptable outreach methods/requirements for establishment of quality right party contact (QRPC)
§ Bankruptcy motions for relief from automatic stay.
This includes both homeowners who have and have not contracted COVID-19, provided their ability to make timely Mortgage payments has been negatively affected as a result of a COVID-19-related hardship.
*Freddie Mac has authorized Servicers to approve forbearance plans for all homeowners who have a COVID-19-related hardship, regardless of property type, as well as temporarily waiving our 12-month delinquency cap on forbearance plans, and other requirements as described in Bulletin 2020-4 and 2020-10.
What is the effective date for these measures?
All of the temporary policies and programs we have put specifically in place in response to COVID-19 are effective immediately. Freddie Mac has been monitoring the situation, resulting in additional updates to credit reporting and forbearance plan requirements, as described in Bulletin. Going forward, we will continue to monitor the situation and may revise or revoke this temporary guidance at any time, as appropriate.
Will there be any relief for property inspections during the COVID-19 national emergency?
As communicated in Guide Bulletin, we are temporarily relieving Servicers from their responsibility to:
§ Complete property inspections related to the insurance loss settlements process
§ Complete property inspections for delinquent mortgages
§ Adhere to the property preservation requirements for abandoned properties.
Will Freddie Mac suspend foreclosures for borrowers impacted by COVID-19?
Freddie Mac is now requiring that the Servicer suspend foreclosure-related activities on properties that are not vacant or abandoned in accordance with the requirements in the CARES Act