Freddie Mac announced this afternoon that it will allow unemployed Americans up to a 12-month forbearance on their mortgage payments.According to the statement, Freddie Mac will allow mortgage services to extend 6 months of forbearance without approval and up to 12 months with their approval.
Freddie Mac says that 10% of delinquencies on its mortgages are tied to unemployment.
The new plan takes effect February 1, 2012.
Tracy Mooney, an SVP in servicing at Freddie Mac said, “These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies. We believe this will put more families back on track to successful long-term Homeownership.”
The move by the federal agency comes amid increasingly populist rhetoric from the White House.