Freddie Mac announced Friday an extension in forbearance for unemployed borrowers. Some unemployed homeowners may now receive up to 12 months forbearance.

According to Freddie Mac, almost 10 percent of delinquencies in the GSE’s portfolio are linked to unemployment.

Previously, servicers could offer up to three months of forbearance without payment on Freddie Mac loans or up

to six months of forbearance with reduced payments without prior approval from the GSE.

Extended forbearance plans were only permitted with prior approval and often only applied to natural disasters or medical emergencies.

Under the new directive, servicers may offer up to six months of forbearance to unemployed homeowners without prior approval, and with prior approval servicers may offer up to six months more totaling a possible one year available in some cases.

“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.,” said Tracy Mooney, SVP of single-family servicing and REO at Freddie Mac.

“We believe this will put more families back on track to successful long-term homeownership,” Mooney said.

Servicers may evaluate borrowers already in an active forbearance plan to consider extending the terms according to the new directive from Freddie Mac.