The massive oil spill in Gulf of Mexico has affected the local economies along the Gulf Coast severely. Thus, Freddie Mac and Fannie Mae have announced forbearance policies for the borrowers of that region. The servicers have been instructed to either suspend the mortgage payments of the borrowers for 3 months or to lower the payments for 6 months. In some cases, the forbearance can continue for 12 months as well. If the borrowers follow the forbearance agreement successfully, the servicers will not be able to collect the late fees even.