Freddie Mac Support for Homeowners in Flint, Michigan
February 11, 2016
The Governor of Michigan declared a state of emergency for the city of Flint due to the city’s water quality crisis.
Freddie Mac will continue to purchase loans secured by properties in Flint, Michigan, subject to our credit and collateral requirements that apply to all loans we purchase. We are not establishing any new requirements. We will continue to monitor this situation and provide any Freddie Mac updates to our Sellers, as appropriate.
We’re reminding Sellers about our general property eligibility requirements and their responsibilities as stated in Guide Section 44.2(a), that the property must be safe, sound and habitable, and have utilities that meet community standards. Freddie Mac requires the appraiser to use current market data to reflect market conditions when determining the market value of the property.
We’re also reminding Sellers about Freddie Mac products and programs for homeowners to help them purchase new homes, as well as refinance their existing homes. These include:
- Freddie Mac Home Possible® mortgages – provides outstanding flexibility with credit terms and low down payments options to meet a variety of borrowers’ needs.
- Freddie Mac Affordable Seconds® – designed to help you meet the needs of low- and moderate-income borrowers who require flexible secondary financing options, and sell affordable lending mortgage products that are supplemented by subsidized secondary financing. Freddie Mac doesn’t purchase the Affordable Second, but we do buy eligible first lien mortgages with Affordable Seconds that meet our criteria.
- Freddie Mac Relief Refinance MortgagesSM [pdf] – Offers borrowers who’ve been unable to refinance due to declining property values the ability to refinance into mortgages that better positions them for long-term homeownership success.
- Loss Mitigation options – Freddie Mac’s entire loss mitigation suite, including forbearance, is at your disposal to help troubled borrowers. Our forbearance policies provide you with the discretion to suspend a borrower’s mortgage payments for up to three months or reduce payments for up to six months. You may also recommend forbearance for up to 12 months, based on the borrower’s individual circumstances.
As always, if you believe a delinquent property’s condition poses ownership risk to Freddie Mac, follow requirements in Single-Family Seller/Servicer Guide (Guide) Section 67.27, and Guide Sections 66.25 and 66.26 to request a sale date extension and an exception for delegated bidding, respectively.
Please contact your Freddie Mac representative if you have any questions.
Source: Freddie Mac