Freddie Extends Hurricane Forbearance Program Again.(Federal Home Loan Mortgage Corp.)

Mclean, Va -- Freddie Mac has extended many of its emergency hurricane relief policies through Aug. 31 in the Gulf Coast counties and parishes affected by Hurricanes Katrina and Rita, according to a May 1 guide bulletin sent to the company's seller/servicers.

The forbearance policies, which had already been extended from earlier deadlines, had been scheduled to expire at the end of May. The new bulletin also makes several underwriting policy changes intended to promote the housing recovery in the least damaged Gulf Coast jurisdictions.

"The May 1 bulletin continues to give servicers the authority to extend relief to borrowers with properties in the worst disaster areas, while recognizing that there are now more Gulf Coast counties and parishes with the economic strength to justify a return to pre-Katrina business operations," said Janet Eakes, senior vice president of Freddie Mac's operations division, in a news release.

Freddie Mac's hurricane policies apply only in federally designated disaster areas where FEMA individual assistance is available. To better support borrower and community recovery efforts, Freddie Mac classifies Gulf Coast counties and parishes by their degree of storm damage and adjusts its policies accordingly. Zone One counties have minimal damage, Zone Two moderate damage and Zone Three severe damage.

Freddie Mac is extending in every zone its ban on reporting borrowers with storm-related forbearance or repayment plans to credit bureaus and a streamlined loan modification process designed to expedite workouts to help storm victims avoid foreclosure.

Lenders must continue to obtain Freddie Mac's prior approval ...