In a press statement yesterday, Freddie Mac reminded its servicers of the disaster relief options available to borrowers with Freddie Mac-owned mortgages, who were affected by Hurricane Gustav earlier this week.

Ingrid Beckles, VP of servicing and asset management at Freddie Mac, advised borrowers whose homes were damaged or destroyed by the Category 2 storm to contact their lenders for mortgage relief. “Freddie Mac and the nation's mortgage servicers will work together to bring some measure of financial relief to homeowners affected by Hurricane Gustav,” Beckles said.

Servicers can offer assistance under Freddie Mac guidelines to borrowers whose homes were damaged or destroyed, as well as borrowers who may be unable to make their mortgage payments because they were evacuated to avoid the storm, the company said. Servicers should assess each case individually to determine if relief is warranted and which option best fits the homeowner's circumstances, Freddie Mac explained.

In addition, Freddie Mac said it will give servicers the discretion to reduce or suspend mortgage payments or foreclosure proceedings for up to 12 months for borrowers with Freddie Mac-owned mortgages in federally declared major-disaster areas.

Freddie Mac also encouraged servicers to extend several other measures to help affected borrowers with Freddie Mac-owned loans, such as waiving assessments of penalties or late fees, and not reporting forbearance or repayment plan extensions resulting from the disaster to the nation's credit bureaus.

For more information on Freddie Mac's disaster relief policies, click here.