As we begin to assess the impacts to borrowers and communities as a result of this past weekend’s Hurricane Wilma, today we’re reminding Freddie Mac Servicers and Sellers of our general disaster relief policies to assist borrowers in Major Disaster Areas as designated by FEMA as a result of Hurricane Wilma.

Single-Family Seller/Servicer Guide (Guide) Sections 58.10, 58.11 and 67.29 outline specific activities to engage in, options to consider, and requirements for the release of loss insurance proceeds when dealing with hurricanes and other disasters. This disaster relief information, being extended for Major Disaster Areas as a result of Hurricane Wilma, is also posted on our website.

In addition to the disaster relief options in our Guide, we are also allowing Servicers, at their discretion, to reduce or suspend mortgage payments for up to 12 months. Each case must be individually assessed to determine the appropriate relief measures for the homeowner's circumstances. As always, if Servicers have a unique situation that warrants special relief consideration, we will review individual circumstances on a case-by-case basis. Servicers should contact their Loss Mitigation Account Representative with any questions.

While any hurricane is devastating, the extraordinary circumstances surrounding Hurricanes Katrina and Rita last month called for extraordinary relief measures. While serious, we believe the scope of Hurricane Wilma makes it appropriate for our response and relief options to fall within the scope of our standard relief and forbearance policies.