FREDDIE MAC OFFERS IMPORTANT REMINDERS DURING HURRICANE SEASON

McLean, VA – Hurricane season is upon us from June through November, with peak season from August to October, according to the National Oceanographic and Atmospheric Administration (NOAA). Although hurricanes can occur at any time of year, now is a good time to review Freddie Mac's (NYSE:FRE) disaster procedures for multifamily properties.

Based on experience from recent hurricanes, the insurance claims process on a large-scale disaster recovery is complex and labor intensive. Freddie Mac recommends the following steps to servicers to help facilitate the process with borrowers following a major loss:

Contact borrowers to determine the extent of any damage to the property and review with the borrower the available coverage. Determine if any tenants have been or will be displaced as a result of the damage.
Encourage borrowers to file claims quickly and engage an adjuster early in the process.
Immediately contact all carriers to establish communication and points of contact including each carrier in multilayered coverage.
Notify Freddie Mac's Portfolio Services area in writing detailing damage to any affected properties.
Remind borrowers that proper notice must be made to insurance carriers and their servicer, and that insurance checks should be made jointly payable to the borrower and to Freddie Mac in accordance with the loss payee provisions of each hazard policy.

In addition, when a disaster occurs, Freddie Mac sends each servicer a list identifying loans in the affected area and instructions specific to the situation. If significant damage is reported, Freddie Mac will work with servicers to determine the next steps.

Since the introduction of the Freddie Mac Program Plus® network of multifamily loan originators and servicers in 1993, Freddie Mac has provided financing for over 48,000 multifamily properties totaling more than $165 billion.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

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