Freddie Mac Funds $1 Billion in Gulf Mortgage Bonds, Facilitates Low-Cost Loans to Storm Victims
BATON ROUGE, La. - In the latest of its continuing efforts to provide mortgage loan relief to the victims of Hurricanes Katrina and Rita, Freddie Mac plans to buy up to $1 billion in tax-exempt mortgage revenue bonds so state and local housing finance agencies in the Gulf Coast can provide below-market rate mortgages and home repair loans to as many as 10,000 families displaced by the two storms. Qualified borrowers must use the loans to buy or repair homes in the federally designated Katrina disaster areas. Borrowers can also use loans to buy a house in a different part of the same state as long as they had a mortgage on a principal residence in a storm disaster area as of Aug. 28. These special requirements apply only to loans closed before Jan. 1, 2008.