Federal Home Loan Mortgage Corp (OTCBB:FMCC) is extending its menu of relief policies to borrowers whose homes might have been destroyed by the powerful storms that have hit some states. Borrowers in Texas and Oklahoma with mortgages owned or guaranteed by Freddie Mac have been asked to get in touch with their servicers to benefit from a range of mortgage relief options.
Relief Options on Offer
Some of the options on offer include forbearance on mortgage payments for up to one year and waiving of penalties or late fees for disaster-damaged homes. Federal Home Loan Mortgage Corp (OTCBB:FMCC) is targeting borrowers in areas declared Major Disaster Areas where federal Individual Assistance program are also being administered.
Borrowers also stand to benefit from no reports being made to the country’s credit bureaus on any delinquencies or forbearance caused by such disasters. Federal Home Loan Mortgage Corp (OTCBB:FMCC) has also asked home loans servicers to address the needs of borrowers who work in declared disaster areas even though they have houses in unaffected regions.
Mortgage Rates Still High
The relief program should be a big relief for homeowners who have seen their homes extensively damaged forcing them to spend a great deal in trying to rebuild them. Many of them may be forced to delay making payments even as Federal Home Loan Mortgage Corp (OTCBB:FMCC) affirms that fixed Mortgage rates remain high.
A 30 year fixed rate mortgage currently stands at 3.87% remaining unchanged in the recent weeks, attributed to mixed economic data. However, the rates could be pushed higher as Treasury yields continue to soar. The yield on a 10-year note was up by ten basis points 2.37% an indication that rates could increase.
Mixed economic data from the past week forced the mortgage rates to remain unchanged according to Federal Home Loan Mortgage Corp (OTCBB:FMCC) deputy chief economist, Len Kiefer. Should Treasury yields continue to soar, homeowners could find it hard to refinance their home loans as rates are expected to spike.