Freddie Mac: Important Seller/Servicer Information on Potential Impacts of COVID-19
March 10, 2020
Source: Freddie Mac
With recent reports of the possible spread of COVID19 (i.e. the coronavirus) in the United States, we understand that you may have concerns on how this may affect borrowers and your business.
We are actively tracking news and information about the virus and making decisions based on guidance from the U.S. Centers for Disease Control and Prevention (CDC) and the World Health Organization (WHO).
We are taking steps to keep our staff safe and have business continuity plans in place to make sure you continue to receive the service and support you need when doing business with Freddie Mac.
Reminders for Servicers
We would like to remind Servicers of the following:
– Borrowers impacted by COVID19 meet the forbearance hardship requirements under the eligible hardship listed in Single-Family Seller/Servicer Guide Section 9202.2.
– While we understand that the impact to borrowers may be temporary, it is still a hardship, and Servicers must work with impacted borrowers who are unable to make their mortgage payments to ensure they are evaluated for a forbearance plan or other appropriate assistance.
– We ask that Servicers be responsive to potential requests for assistance from borrowers who may be impacted by COVID19.
We are also reminding all Seller/Servicers that they must have a business continuity plan (BCP) in place to support its ongoing ability to conduct business operations, among other things, in the event of an interruption to business operations and processes. The specific requirements regarding a Seller/Servicers BCP can be found in Guide Section 1302.3.Opens in a new window
Please reach out to your Freddie Mac representative if you have additional questions.