Freddie MacWASHINGTON, Oct 30 (Reuters) - Fannie Mae and Freddie Mac on Tuesday extended their disaster-relief policies to borrowers whose homes were damaged by Hurricane Sandy.

The aid applies to property owners living in towns and cities along the eastern United States that have been declared disaster areas by President Barack Obama.

Millions of people were left reeling in the aftermath of the super storm that made landfall on Monday and resulted in flooding, wide-spread power outages and deaths.

The historic storm caused government offices and U.S. financial markets to close on Monday and Tuesday. Preliminary estimates show that damage could exceed $10 billion.

"Freddie Mac has authorized the nation's mortgage servicers to provide a full range of mortgage-relief options to affected borrowers with mortgages owned or guaranteed by Freddie Mac," said Tracy Mooney, senior vice president of single-family servicing and real estate owned at Freddie Mac.

One of the options for people with Freddie Mac-backed loans is forbearance on mortgage payments for up to one year. The government-backed mortgage lender has told its servicers to offer forbearance, which lets a borrower reduce or suspend payments on a loan for a specific amount of time. This is done on a case by case basis.

Freddie Mac said it "strongly encourages" servicers to help affected borrowers with Freddie Mac-owned loans by suspending foreclosure and eviction proceedings for up to 12 months, waiving assessments of penalties or late fees against borrowers with disaster-damaged homes and not reporting forbearance or delinquencies caused by the disaster to credit bureaus.

Fannie Mae said its policy with mortgage servicers, updated in 2009, allows borrowers to enter forbearance for up to 90-days. Fannie Mae said servicers were reminded of the existing guidelines on disaster relief in light of the recent storm.

Fannie and Freddie, the two largest sources of housing money, were taken over by the government in September 2008 during the financial crisis.

The government-controlled companies do not directly make loans. Instead, they buy mortgages from lenders and repackage them as securities for investors.

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ha6ai

The Democrats bankrupted Fannie and Freddie, and those of us who pay taxes are on the hook.

Where do they come off giving away more taxpayer money? This is just one more form of Welfare.

November 01 2012 at 12:24 AM Report abuse +2 rate up rate down Reply
1 reply to ha6ai's comment
freethedems2012

It's the liberal way.

November 02 2012 at 10:02 PM Report abuse +1 rate up rate down Reply
ragtopdaz

Hurricane Sandy Looting, Fights Plague South Brooklyn
Now wall street is back in business doing the same thing... LOL
Ya just gotta love how nothing stops the crooks..

October 31 2012 at 1:39 PM Report abuse +1 rate up rate down Reply
Randy

Freddie & Fannie are exactly why the government should stay out of health care.

October 31 2012 at 1:31 PM Report abuse +1 rate up rate down Reply
1 reply to Randy's comment
freethedems2012

So true.

October 31 2012 at 1:33 PM Report abuse +1 rate up rate down Reply
Taina

Why are there 2 huge bureaucracies for mortgages anyway?

October 31 2012 at 1:25 PM Report abuse +1 rate up rate down Reply
ragtopdaz

The best relief the tax payers could get from Fannie Mae, Freddie Mac is if the government would flush them down the sewer.
I pay thousands each year for house insurance, I pay my mortgage plus now as a tax payer I have to give money to FEMA who hands out free money plus give money to Fannie Mae, Freddie Mac who also hand out more free money.
Granted most people in this economy could use help, but there are others who just milk the system.
Fannie Mae and Freddie Mac Posting $2.9 Billion Profit, Still Owe Tax Payer $90 Billion. Posted on 09 August 2012 by David Click ...

October 31 2012 at 1:11 PM Report abuse +4 rate up rate down Reply
1 reply to ragtopdaz's comment
freethedems2012

Down the sewer is where they belong

October 31 2012 at 1:33 PM Report abuse +2 rate up rate down Reply
emcsquare

Wow, how big of them.

October 31 2012 at 11:52 AM Report abuse +2 rate up rate down Reply
pdbliz

PEOPLE,,,,BOTH ARE RIP OFFS...........IF THE FEDERAL GOVERMENT GIVES YOU ANYTHING,,,,BEND OVER.!!!!!!!!!!!!!!!!!
FM,,,FM....IS ONE OF THE PROBLEMS OF THIS RESSISION...........IT GAVE MONEY TO THOSE ,,THEY KNEW,,,WOULD NEVER PAY IT BACK,,,,, I DO NOT TRUST THE GOVERMENT.!!!!

October 31 2012 at 9:02 AM Report abuse +2 rate up rate down Reply