Servicers Give WTC Relief.

In an effort to help borrowers who have been directly affected in the recent terrorist attacks, the government- sponsored enterprises as well as many mortgage servicers, have decided to relax their normal collection procedures.

Freddie Mac has rolled out its "Peace of Mind Plan," in which it urges lenders servicing its mortgages to "extend every opportunity available under Freddie Mac's business policies to help borrowers directly or indirectly affected by the terrorist attacks."

Brad German, a spokesperson for the agency, said, "We are going beyond our normal procedures in the depth of relief that we will provide."

Freddie Mac will, on a case-by-case basis, allow for "longer than usual extensions on forbearances, the restructuring of loans, the changing of interest rates on loans for a while, and the foregoing some of the monthly payments," said Mr. German.

Freddie Mac also released a notice to servicers asking them to "protect the credit of affected borrowers by not reporting delinquencies to the credit bureaus." No specific timeframe was given for this, but is was suggested that those with questions should call the agency's customer care line.

Also contributing to the relief effort is Fannie Mae, announcing that it is extending its normal natural disaster relief provisions to cover the borrowers affected by the terrorist attacks, and that servicers should not start foreclosure proceedings on any affected homeowner within the first 90 days after the disaster.

Alfred King, a spokesperson for Fannie Mae, said, "This provision is for anyone who can show that the events that occurred are creating a hardship and making it difficult for them to pay their mortgages on time."