Freddie Mac Reminds Homeowners Impacted by Devastating Wildfires in the Los Angeles Area of Mortgage Relief Options

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has announced mortgage relief options for homeowners affected by wildfires in the Los Angeles area. The company's forbearance program offers up to 12 months of mortgage relief without late fees or penalties. Affected homeowners with Freddie Mac mortgages can access these disaster relief options if their property experiences an insurable loss or is located in Presidentially-Declared Major Disaster Areas.

The relief package includes suspension of foreclosure proceedings and multiple options for repayment:

• Lump sum reinstatement (not required)
• Repayment plan with additional monthly payments
• Payment deferral with missed payments added to loan end
• Loan modification for long-term financial hardships

Homeowners are encouraged to contact their mortgage servicers to discuss available options, including those whose employment has been impacted by the disaster.

Positive

• Offering 12-month mortgage relief without penalties
• Multiple flexible repayment options available
• Suspension of foreclosure proceedings during forbearance
• Relief extends to employment-related financial hardships

Negative

• None.

MCLEAN, Va., Jan. 13, 2025 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today is reminding homeowners and mortgage servicers of its immediate relief options for those affected by the tragic wildfires in California. Freddie Mac’s forbearance program provides homeowners mortgage relief for up to 12 months without incurring late fees or penalties.

“The number one priority for those affected by the destruction of these ongoing wildfires is to reach safety,” said Mike Reynolds, Freddie Mac Single-Family Vice President and Head of Servicing. “Once out of harm’s way, we encourage homeowners in these affected areas to contact their mortgage servicer to learn about relief options. Freddie Mac and our partners stand ready to provide immediate assistance and aid in the recovery of families and individuals.”

Freddie Mac's disaster relief options are available to homeowners with a Freddie Mac mortgage who have been impacted by an eligible disaster. This includes anytime the homeowner’s property experiences an insurable loss, and also covers instances where their homes or places of employment are located in Presidentially-Declared Major Disaster Areas with individual assistance designations. Foreclosure and other legal proceedings are also suspended while homeowners are on a forbearance plan.

Homeowners whose homes are impacted should contact their mortgage servicer—the company they send their monthly mortgage payments to—as soon as possible to talk about available mortgage relief options. This also includes homeowners whose places of employment have been impacted resulting in a financial hardship that prevents them from being able to make their monthly payment.

When they are back on their feet, homeowners have several options to make up the missed payments, including additional forbearance, if needed.

• Reinstatement. The option for a lump sum payment is available, but never required, if the homeowner’s loan is owned by Freddie Mac. If possible, however, it is the fastest way to get back on track.
• Repayment plan. Homeowners pay more each month on top of their existing mortgage payment to make up the missed payments.
• Payment Deferral. This option is available if homeowners can resume making their regular monthly payment. With payment deferral, homeowners become immediately current on their mortgage and missed payments are added to the end of the mortgage term without penalties or additional interest.
• Loan modification. If a homeowner is facing a long-term financial hardship but can make a reduced mortgage payment, a modification may be the best option.

Freddie Mac also reminds servicers that its disaster relief options are available to affected homeowners outside the declared disaster areas if their home incurs a disaster-related insured loss that impacts their ability to make their mortgage payment.

More information is available on My Home by Freddie Mac where owners can read about the steps they can take to help recover from a natural disaster, including frequently asked questions related to disaster and mortgage relief. Freddie Mac also provides dedicated resources to renters in apartment buildings, to help them plan and prepare for natural disasters, as well as respond and recover after they strike.

About Freddie Mac
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | Twitter | LinkedIn | Facebook | Instagram | YouTube

MEDIA CONTACT: Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com

FAQ

What mortgage relief is Freddie Mac (FMCC) offering for LA wildfire victims?

Freddie Mac is offering up to 12 months of mortgage forbearance without late fees or penalties, along with suspension of foreclosure proceedings for affected homeowners.

How can homeowners repay missed payments under FMCC's wildfire relief program?

Homeowners have four options: lump sum payment (not required), repayment plan with additional monthly payments, payment deferral to the end of the mortgage, or loan modification.

Who qualifies for Freddie Mac's (FMCC) wildfire disaster relief?

Homeowners with Freddie Mac mortgages whose properties experienced insurable loss or are in Presidentially-Declared Major Disaster Areas qualify, including those whose employment was impacted.

What immediate steps should FMCC mortgage holders take to access wildfire relief?

Affected homeowners should contact their mortgage servicer (the company they send monthly payments to) as soon as possible to discuss available relief options.

Does Freddie Mac's (FMCC) disaster relief require a lump sum repayment?

No, while lump sum payment is available, it is never required for Freddie Mac-owned loans. Multiple flexible repayment options are available.