Freddie Mac Statement On FHFA Announcement Of Short Sale Relief For Military Borrowers
MCLEAN, Va., June 21, 2012 /PRNewswire/ -- The following statement was released today by Paul Mullings, Interim Head of Single Family Business and Information Technology, Freddie Mac (OTC: FMCC):
"Freddie Mac is proud to support this important new effort to help servicemen and women when national duty requires them to sell their homes in an uncertain market. We look forward to working with our servicers on this new short sale policy. Together we can help ease the challenge of relocation for military families when Permanent Change of Station orders are received."
- Today's directive from the Federal Housing Finance Agency (FHFA) means Permanent Change of Station (PCS) orders will be considered a hardship for the purpose of qualifying borrowers serving in the armed forces for a short-sale.
- Once implemented the new policy will enable borrowers with PCS orders to sell a primary residence purchased on or before June 30, 2012 for less than the balance on their mortgages without first being in default. Freddie Mac will also not pursue deficiency judgments or a contribution under the new policy.
- Freddie Mac policy currently requires mortgage servicers to treat PCS orders as a hardship for a loan modification or a forbearance.
- Freddie Mac and its servicers have helped more than 656,000 distressed borrowers avoid foreclosure since 2009, more than 116,802 of them through short sales and similar alternatives.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com.
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