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September 26, 2018

Hurricane Information

For Hurricanes Florence and Michael

Servicing Standard Updates

Last updated October 10, 2018

If you have questions on any properties, either actively quoted or under app, please contact your Freddie Mac Account Manager.

We want to thank you for your partnership and assistance as we work together to assess the damage and assist Borrowers. Our thoughts are with those managing any storm-related difficulties.

Our Servicing Standard summarizes our approach to dealing with affected Borrowers, their properties and associated loans held by Freddie Mac in its portfolio. The staples of the Standard are listed below.

  • For any loan secured by a property located within a county designated for Individual Assistance by FEMA as part of a Major Disaster Declaration, Freddie Mac will offer forbearance up to 90 days (3 monthly payments) upon Borrower request, which must be made prior to December 10, 2018. If the Borrower enters into a Forbearance Agreement, Freddie Mac will also waive any associated late charges and default interest.
  • The Borrower must repay the total forborne amount, without additional interest or prepayment premiums, over the ensuing 12-month period.
  • Freddie Mac is providing its standard form of Forbearance Agreement to Servicers. Its substantive terms will be non-negotiable.
  • Freddie Mac is prepared to reimburse Servicers’ counsel fees associated with the preparation and completion of the Forbearance Agreement in an amount not to exceed $750.
  • If at the end of the 90-day forbearance period the Borrower cannot or does not resume making scheduled monthly payments (including the deferred amounts), then Freddie Mac will transfer the loan to its Asset Resolution group for discussion of workout arrangements or enforcement actions.
  • Freddie Mac will also be applying this Servicing Standard on all securitizations in which it is the named Master Servicer. While a loan is subject to the Forbearance Agreement, the loan will stay with the Master Servicer. If the Borrower defaults under the terms of the Forbearance Agreement, the loan will then be transferred to the Special Servicer for resolution.
  •  If your Borrowers have any questions, please have them contact their Servicers directly.

We’ve communicated these and additional details to our servicing community already. We’ve also provided a copy of the Servicing Standard, Forbearance Agreement and Forbearance guidelines.

If you have any questions, please contact Leanne Spies, Pam Dent, or any of your relationship contacts here at Freddie Mac.

To Our Investors, from Asset Management

We continue to work with our Servicers to assess the extent of the damage caused by Hurricane Florence and its effect on properties securing loans in Freddie Mac securitizations. To support our Investors, we will make information available via the MSIA website.

We’ve instituted a forbearance program for affected properties located in counties designated by FEMA as Major Disaster Individual Assistance areas. We’ve shared this information with our Servicer network. We also provided Servicing leaders with a Servicing Standard that provides specific hurricane response-related guidance.

Please allow Servicers the time needed to gather the information as they focus on working with the affected Borrowers. Please reach out to your respective Master Servicer for updates on individual properties in your portfolios.

For other questions, please email Lori Umberger or call her at 703-714-3377.


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