Special Options for Servicemembers

You have several ways to offer relief for servicemembers on active duty through the Servicemembers Civil Relief Act (SCRA) and Freddie Mac's own policies. Supporting the SCRA, you, your borrowers and servicemembers can call our Loss Mitigation representatives to speak with a borrower assistance counselor about Freddie Mac's mortgage relief and workout options and how they can be applied to individual cases.

What is the SCRA?

The SCRA, which allows active military members to suspend or postpone some civil financial obligations, was signed into law on December 19, 2003, amending the Soldiers' and Sailors' Civil Relief Act (SSCRA) of 1940. Designed to assist and protect important rights of active duty military members and reservists who are in active federal service, the SSCRA had not included members of the National Guard. Already previously eligible for Freddie Mac relief options, National Guard Members called to active state duty in response to a national emergency declared by the President of the United States are now recognized under the new statute.

Extended Protection Now Available Under SCRA

To help service personnel facing financial problems avoid foreclosure and in accordance to the Housing and Economic Recovery Act of 2008, we are requiring servicers to extend:

• The period of time that the 6 percent interest rate cap can be applied to eligible mortgages to include a service member's period of active duty and one year after release from active duty.
• The stay of foreclosure and legal proceedings from 90 days to nine months after the service member's release from active duty. This extension is effective only until December 31, 2010 and the requirement will revert back to the 90-day period on January 1, 2011.

Additional SCRA Information

In the past six years, Freddie Mac has given over $11 million of relief to more than 10,000 military servicemembers with Freddie-Mac owned loans.

Resources related to the SCRA:

• December 18 Single-Family Seller/Servicer Guide (Guide) Bulletin [PDF 177K]
• Guide forms required when selling or servicing a mortgage for a service member
  • Form 105 [PDF 56K], Multipurpose Loan Servicing Transmittal
  • Form 1066 [PDF 26K], SCRA Accounting Data Form
  • Form 1071 [PDF 29K], Supplemental Accounting Report of SCRA Mortgages

We'd like to remind servicers that under no circumstances should you place loans of active duty servicemembers, or those who have been released from active duty within the past nine months, into foreclosure without Freddie Mac approval. Please ensure that you explore all relief options available.

If your borrowers require additional relief than what is currently available, please contact your Loss Mitigation representative. We can work together to develop relief solutions that assist servicemembers and help them keep their homes.