source:
  type: regulation
  id: fhlmc-9203
  authority: Freddie Mac Single-Family Seller/Servicer Guide Chapter 9203 — Reinstatements and Relief
    Options
  description: 'Chapter 9203 of the Freddie Mac Single-Family Seller/Servicer Guide

    sets requirements for full and partial reinstatements, repayment

    plans, forbearance, and payment deferrals. NOTE: actual title is

    "Reinstatements and Relief Options", not "Modifications".

    '
obligations:
- id: fhlmc-9203-full
  canonical_id: fhlmc-9203-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Chapter 9203
  description: "9203.1: Reinstatements and relief options (04/27/26) \nthe new requirements prior to the\
    \ mandatory October 1, 2026 version of this section if they \n \n \n■ Reinstatements and relief options\
    \ \n \n■ General requirements for reinstatements and relief options \n \n■ Types of reinstatement\
    \ \n \n■ When to accept f…"
  type: do
  tags:
  - regulator-direct
  - section-complete
  - fhlmc-guide
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 9203.1(d)
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/ci-guide
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-05-23T00:27:40Z'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: "9203.1: Reinstatements and relief options (04/27/26) \nthe new requirements prior\
      \ to the mandatory October 1, 2026 version of this section if they \n \n \n■ Reinstatements and\
      \ relief options \n \n■ General requirements for reinstatements and relief options \n \n■ Types\
      \ of reinstatement \n \n■ When to accept full reinstatement \n \n■ When to accept partial reinstatement\
      \ of a Mortgage in foreclosure \n \n■ Reporting and processing the reinstatement \n \n■ Reimbursement\
      \ of expenses related to reinstatements \n \n(a) Reinstatements and relief options \n \nThe most\
      \ desirable resolution to a Delinquency is reinstatement. Reinstatement is the act of \nrestoring\
      \ a delinquent Mortgage to current status. When the Servicer’s collection efforts do \nnot result\
      \ in reinstatement of a delinquent Mortgage, the Servicer should consider offering \nthe Borrower\
      \ a relief option. \nA relief option is an alternative to foreclosure that provides a Borrower with\
      \ temporary relief \nor an opportunity to cure a Delinquency over a defined period of time or bring\
      \ the \nDelinquency immediately current. \nIf the Servicer has a Borrower whose situation does not\
      \ meet Freddie Mac’s relief option \neligibility requirements but the Servicer feels a relief option\
      \ is still the best possible solution \nto cure the Delinquency, the Servicer must submit a request\
      \ to Freddie Mac (see Directory 5) \nfor Freddie Mac’s review. The Servicer must use Form 105, Multipurpose\
      \ Loan Servicing \nTransmittal, and explain why a relief option is the best solution to the Delinquency.\
      \ \n \n\n \n \n \n \nPage 9203-2 \nIn lieu of having the Servicer or Borrower prepare, sign and\
      \ send, return or submit paper \ndocuments necessary to process a reinstatement or relief option,\
      \ the Servicer and Borrower \nmay provide loss mitigation information and documents electronically.\
      \ \n \nNote: See Section 1401.3(h) for eligible documents and related requirements. \n \n(b) General\
      \ requirements for reinstatements and relief options \n \nFor all reinstatements and relief options,\
      \ the Servicer must: \n \n1. Comply with the requirements of the FHA, VA, RHS or MI and obtain approval\
      \ from the \nFHA, VA, RHS or MI, if applicable \n \n2. Retain any written agreements in the Mortgage\
      \ file \n \n3. Within two Business Days of the date on which the Servicer receives a written request\
      \ for \npayoff or reinstatement figures, provide complete, written figures as of the request date\
      \ to \nthe attorney, trustee, workout specialist or outsourcing vendor requesting the information\
      \ \n \nFor all reinstatements and relief options, the Servicer must not: \n \n1. Demand payment\
      \ of expenses from the Borrower in excess of the costs the Servicer \nactually incurred at the time\
      \ the Borrower reinstates the Mortgage. These costs may not \nexceed Freddie Mac’s approved expense\
      \ amounts (see Exhibit 57A, Approved Attorney, \nForeclosure, Mediation, Postponement Fees and Title\
      \ Expenses) unless the Servicer has \nobtained Freddie Mac’s approval to exceed these amounts, which\
      \ approval may be \nrequested by submitting Form 105 to Freddie Mac (see Directory 5) prior to incurring\
      \ \nthe expense. \n \n2. Refuse to reinstate a Mortgage if the Borrower is unwilling or unable to\
      \ pay a \nreinstatement or relief fee that is allowed by applicable law or the Purchase Documents.\
      \ \nAmong available options, the Servicer may defer collection of the fee until payoff of the \n\
      \ \n3. Charge the Borrower any of the costs itemized in Section 9701.4(a) \n \n(c) Types of reinstatement\
      \ \n \nThere are two types of reinstatement: full and partial. \n \n(i) Full reinstatement \n \n\
      A full reinstatement occurs when the Borrower restores a delinquent Mortgage to current \nstatus\
      \ by paying the total delinquent amount, including advances, delinquent principal \nand interest,\
      \ legal costs and other expenses incurred and that are past due under the Note \nand the Security\
      \ Instrument. \n\n \n \n \n \nPage 9203-3 \n \nThe Servicer must not charge or collect from the\
      \ Borrower an amount that exceeds the \nexpense limits specified in Exhibit 57A, except in cases\
      \ where a higher expense amount \nis legally allowable and recoverable. In addition, the payment\
      \ must not include \nreimbursement for costs the Servicer incurred if applicable law prohibits collection\
      \ of \nthose costs from the Borrower. \n \n(ii) Partial reinstatement \n \nA partial reinstatement\
      \ occurs when the Borrower makes at least one full contractual \nmonthly payment on a delinquent\
      \ Mortgage but does not bring the Mortgage current. \nServicers must report the loan level transaction\
      \ in accordance with Section 8303.3(j). \n \n(iii)Partial reinstatement and repayment plan \n \n\
      A partial reinstatement should be coupled with a repayment plan to restore a delinquent \nMortgage\
      \ to current status, but doing so is not mandatory. When processing a repayment \nplan: \n \n■ The\
      \ Borrower must pay an amount that: \n \n❑ Equals or exceeds at least one full contractual monthly\
      \ payment on a delinquent \n \n❑ Is less than the total delinquent amount due, including delinquent\
      \ principal and \ninterest, advances, legal costs and other expenses incurred and that are past\
      \ due \nunder the Note and the Security Instrument \n \n■ The Borrower must agree to a repayment\
      \ plan that provides for payment of the \nremaining arrearage, includes a stipulation that suspends\
      \ the foreclosure proceedings \nduring the repayment plan and allows the Servicer to recommence\
      \ foreclosure at the \npoint the foreclosure was suspended if the Borrower defaults on the repayment\
      \ plan, \nunless otherwise prohibited by applicable law. \n \nNote: Exhibit 93, Evaluation Notices,\
      \ includes a model repayment plan \ntemplate and a model reinstatement template that the Servicer\
      \ may combine \nand amend as necessary to comply with the requirements of this section and \n \n\
      ■ The Servicer must not charge or collect from the Borrower an amount that exceeds \nthe expense\
      \ limits specified in Exhibit 57, 1- to 4-Unit Property Approved Expense \nAmounts, and Exhibit\
      \ 57A unless those amounts were approved by Freddie Mac. In \naddition, the payment must not include\
      \ reimbursement for costs the Servicer incurred \nif applicable law prohibits collection of those\
      \ costs from the Borrower. \n \n\n \n \n \n \nPage 9203-4 \nServicers that choose not to pair a\
      \ partial reinstatement with a repayment plan \nmust continue to attempt to resolve the Delinquency\
      \ and remain responsible for \nadhering to foreclosure timeline requirements. \n \n(d) When to accept\
      \ full reinstatement \n \nThe Servicer must accept full reinstatement of a Mortgage if the payment,\
      \ in cash or certified \nfunds, includes the following: \n \n■ Total delinquent amount \n \n■ Accrued\
      \ interest and unpaid principal \n \n■ Actual legal costs, including any advances and additional\
      \ expenses incurred \n \n■ Costs for BPO, if applicable \n \n■ Inspection fees \n \n■ Accrued late\
      \ charges. \n \nWith the exception of inspection fees, regardless of expenses incurred, the Servicer\
      \ must not \ncharge the Borrower an amount that exceeds the expense limits specified in Exhibit\
      \ 57A. In \naddition, the payment must not include reimbursement for costs the Servicer incurred\
      \ if State \nlaw prohibits collection of those costs from the Borrower. \n \nThe Servicer must not\
      \ refuse to accept a full reinstatement if the Borrower offers to pay all \namounts due except for\
      \ the cost of the BPO, inspection fees and accrued late charges. The \nServicer may make arrangements\
      \ with the Borrower to pay the late charges after the \nMortgage is reinstated. If the Borrower\
      \ can pay all arrearages, inspection fees and costs, \nexcept for the cost of the BPO, the Servicer\
      \ is not required to collect the BPO cost from the \nBorrower or remit the cost of the BPO to Freddie\
      \ Mac. The Servicer must document the \nreason for nonremittance of the BPO cost in the file. \n\
      \ \nThe Servicer must collect the cost of the BPO before it can collect any accrued late charges.\
      \ \n \n(e) When to accept partial reinstatement of a Mortgage in foreclosure \n \nThe Servicer must\
      \ accept partial reinstatement of a Mortgage referred to foreclosure if the \nfollowing conditions\
      \ are met. \n \n1. The Borrower submits payment in cash or certified funds of: \n \n■ All outstanding\
      \ legal fees and related expenses, in amounts not to exceed the expense \nlimits specified in Exhibit\
      \ 57A, and \n \n\n \n \n \n \nPage 9203-5 \n■ An amount equal to, at a minimum, the first payment\
      \ due under the repayment plan \n \n2. If there is an Escrow account on the Mortgage, the Borrower\
      \ must enter into a repayment \nplan with the Servicer that includes an agreement to repay the remaining\
      \ delinquent \ninterest, principal and Escrow (if applicable) and the scheduled monthly payments,\
      \ no \nlater than 12 months from the date the Servicer receives the partial reinstatement funds.\
      \ \n \nThe repayment plan must be in writing if the plan exceeds three months. If the Mortgage \n\
      was referred to foreclosure prior to extending the repayment plan, the Borrower must \nmake the\
      \ first payment under the agreement in order to accept the terms of the plan. If \nthere is no Escrow\
      \ account on the Mortgage, the Servicer must establish one if the \nrepayment period exceeds three\
      \ months (unless prohibited by applicable law) and then \nmay extend the repayment period to no\
      \ more than 18 months without Freddie Mac’s \n \nThe plan must state: \n \n■ The amount of the partial\
      \ reinstatement payment \n \n \n■ Beginning and end dates of the repayment period \n \n \n■ That\
      \ the Borrower must pay all scheduled monthly payments during the period of the \n \n \n■ The Borrower\
      \ agrees that the foreclosure proceedings are suspended during the \nrepayment plan and that the\
      \ Servicer is entitled to recommence foreclosure at the \npoint the foreclosure was suspended if\
      \ the Borrower defaults on the repayment plan \n \nExhibit 93, includes a model repayment plan template\
      \ and model reinstatement template \nthat the Servicer may combine and amend as necessary to comply\
      \ with the requirements \nof this section and applicable law. \n \n3. The Borrower must submit information\
      \ demonstrating his or her financial ability to make \n \n■ Partial reinstatement payment \n \n\n\
      \ \n \n \n \nPage 9203-6 \n■ Repayment plan payments (including the scheduled monthly payment) on\
      \ a monthly \n \n■ Monthly payments at the end of the repayment plan \n \nAt the end of the repayment\
      \ plan, the Servicer may make arrangements with the Borrower to \ncollect accrued late charges,\
      \ inspection fees and the cost of the BPO. However, the payment \nmust not include reimbursement\
      \ for costs the Servicer incurred if State law prohibits \ncollection of those costs from the Borrower.\
      \ \n \nIf the Servicer or the Borrower propose a partial reinstatement plan that does not meet \n\
      Freddie Mac’s criteria, but the Servicer believes it will result in the Borrower’s reinstatement\
      \ \nof the Mortgage, the Servicer must submit the plan on Form 105 to Freddie Mac (see \nDirectory\
      \ 5) for consideration. \n \n(f) Reporting and processing the reinstatement \n \n(i) Processing\
      \ partial reinstatements and repayment plans \n \nThe Servicer must also notify Freddie Mac via\
      \ an EDR transmission within three \nBusiness Days of the month following the month in which it\
      \ accepted the initial payment \non a repayment plan or a partial reinstatement of a Mortgage that\
      \ was reported in \nforeclosure in the previous month and needs to be moved to delinquent status\
      \ from \nforeclosure status. The Servicer must include the following activity in the EDR \ntransmission:\
      \ \n \n1. Default action code 12 (Repayment Plan) indicates a repayment plan once the initial \n\
      repayment plan payment is received. The Servicer must continue reporting this code \nfor each month\
      \ of the repayment period except for the last month of the repayment \nperiod in which the Mortgage\
      \ will be fully reinstated. \n \n2. Default action code 20 (Reinstatement (Partial)) is only required\
      \ if, as a result of the \npartial reinstatement without a repayment plan, the Servicer needs to\
      \ change the \nMortgage status from foreclosure to delinquent \n \n3. Servicers should not report\
      \ default action code 12 in the last month of the repayment \n \nThe Servicer must continue to report\
      \ the default action code 12 (Repayment Plan) for the \nMortgage in its future monthly EDR transmissions,\
      \ provided the Borrower is in \ncompliance with the terms of the repayment plan, until the Mortgage\
      \ has been fully \nreinstated (see above steps one through three) or paid off or a workout has been\
      \ \n \ndiscontinue reporting default action code 12 on its EDR transmission. \n\n \n \n \n \nPage\
      \ 9203-7 \n \n \nIf the Mortgage has been inactivated by Freddie Mac, the Servicer must report partial\
      \ \nreinstatement in the Loan-Level Transaction as required in Section 8303.3(j). \n \n(ii) Processing\
      \ requirements \n \nIf the Servicer accepts a full or partial reinstatement on a Mortgage that is\
      \ or was in \nforeclosure, then it must process the transaction as follows: \n \n1. Take all necessary\
      \ actions to prevent additional foreclosure expenses from being \nincurred, if applicable \n \n\
      2. Pay any foreclosure expenses that were actually incurred \n \n3. Apply any remaining funds to\
      \ the Mortgage \n \n4. Return the Note, if appropriate, with a paper copy of the original or electronic\
      \ or \nsystem-generated version of Form 1036, Request for Physical or Constructive \nPossession\
      \ of Documents, to the Document Custodian by certified mail. \n \nIf one of Freddie Mac’s Designated\
      \ Custodians is holding the Note, submit the Note \nand any additional documentation, if required,\
      \ as directed by the Designated \n \nSeller/Servicers that use The Bank of New York Mellon Trust\
      \ Company, N.A., as \nDesignated Custodian, and use its web-based process will include a copy of\
      \ the \nelectronically generated 1036 Release Receipt Report when returning such items to \nthe\
      \ Designated Custodian (see Section 8107.1). \n \n(iii)Additional requirements for Mortgages with\
      \ buydown funds \n \nAdditional requirements for Mortgages with buydown funds are as follows: \n\
      ■ When processing a reinstatement for a Mortgage subject to a temporary subsidy \nin a buydown account\
      \ to bring a delinquent Mortgage current unless it is required per \nthe terms of the buydown agreement\
      \ \n \n■ Upon reinstatement of a Mortgage that is subject to a temporary subsidy buydown \nplan,\
      \ the Borrower must resume their monthly payment amount as specified in the \nterms of the buydown\
      \ agreement, subject to applicable law and the terms of the \nbuydown agreement* \n \n\n \n \n \n\
      \ \nPage 9203-8 \n \n \n \n(g) Reimbursement of expenses related to reinstatements \n \nIf applicable\
      \ federal, State or local law prohibits collection of incurred expenses (e.g., legal \nfees and/or\
      \ legal costs) from the Borrower upon reinstatement of the Mortgage, Freddie Mac \nwill reimburse\
      \ certain expenses the Servicer incurs. \n \nNote: See Section 9701.1(e)(iv) regarding unrecoverable\
      \ expenses. \n9203.1: Reinstatements and relief options (Future \neffective date 10/01/26) \n \n\
      ■ Reinstatements and relief options \n \n■ General requirements for reinstatements and relief options\
      \ \n \n■ Types of reinstatement \n \n■ When to accept full reinstatement \n \n■ When to accept partial\
      \ reinstatement of a Mortgage in foreclosure \n \n■ Reporting and processing the reinstatement \n\
      \ \n■ Reimbursement of expenses related to reinstatements \n \n(a) Reinstatements and relief options\
      \ \n \nThe most desirable resolution to a Delinquency is reinstatement. Reinstatement is the act\
      \ of \nrestoring a delinquent Mortgage to current status. When the Servicer’s collection efforts\
      \ do \n\n \n \n \n \nPage 9203-9 \nnot result in reinstatement of a delinquent Mortgage, the Servicer\
      \ should consider offering \nthe Borrower a relief option. \n \nA relief option is an alternative\
      \ to foreclosure that provides a Borrower with temporary relief \nor an opportunity to cure a Delinquency\
      \ over a defined period of time or bring the \nDelinquency immediately current. \nThe most desirable\
      \ resolution to a Delinquency is a reinstatement. When the Servicer’s \ncollection efforts do not\
      \ result in reinstatement of a delinquent Mortgage, the Servicer must \nevaluate Borrowers in accordance\
      \ with the Freddie Mac loss mitigation evaluation hierarchy \nas set forth in Section 9201.2. \n\
      If the Servicer has a Borrower whose situation does not meet Freddie Mac’s relief option \neligibility\
      \ requirements but the Servicer feels a relief option is still the best possible solution \nto cure\
      \ the Delinquency, the Servicer must submit a request to Freddie Mac (see Directory 5) \nfor Freddie\
      \ Mac’s review. The Servicer must use Form 105, Multipurpose Loan Servicing \nTransmittal, and explain\
      \ why a relief option is the best solution to the Delinquency. \n \nIn lieu of having the Servicer\
      \ or Borrower prepare, sign and send, return or submit paper \ndocuments necessary to process a\
      \ reinstatement or relief option, the Servicer and Borrower \nmay provide loss mitigation information\
      \ and documents electronically. \n \nNote: See Section 1401.3(h) for eligible documents and related\
      \ requirements. \n \n(b) General requirements for reinstatements and relief options \n \nFor all\
      \ reinstatements and relief options, the Servicer must: \n \n1. Comply with the requirements of\
      \ the FHA, VA, RHS or MI and obtain approval from the \nFHA, VA, RHS or MI, if applicable \n \n\
      2. Retain any written agreements in the Mortgage file \n \n3. Within two Business Days of the date\
      \ on which the Servicer receives a written request for \npayoff or reinstatement figures, provide\
      \ complete, written figures as of the request date to \nthe attorney, trustee, workout specialist\
      \ or outsourcing vendor requesting the information \n \nFor all reinstatements and relief options,\
      \ the Servicer must not: \n \n1. Demand payment of expenses from the Borrower in excess of the costs\
      \ the Servicer \nactually incurred at the time the Borrower reinstates the Mortgage. These costs\
      \ may not \nexceed Freddie Mac’s approved expense amounts (see Exhibit 57A, Approved Attorney, \n\
      Foreclosure, Mediation, Postponement Fees and Title Expenses) unless the Servicer has \nobtained\
      \ Freddie Mac’s approval to exceed these amounts, which approval may be \nrequested by submitting\
      \ Form 105 to Freddie Mac (see Directory 5) prior to incurring \nthe expense. \n\n \n \n \n \nPage\
      \ 9203-10 \n \n2. Refuse to reinstate a Mortgage if the Borrower is unwilling or unable to pay a\
      \ \nreinstatement or relief fee that is allowed by applicable law or the Purchase Documents. \n\
      Among available options, the Servicer may defer collection of the fee until payoff of the \n \n\
      3. Charge the Borrower any of the costs itemized in Section 9701.4(a) \n \n(c) Types of reinstatement\
      \ \n \nThere are two types of reinstatement: full and partial. \n \n(i) Full reinstatement \n \n\
      A full reinstatement occurs when the Borrower restores a delinquent Mortgage to current \nstatus\
      \ by paying the total delinquent amount, including advances, delinquent principal \nand interest,\
      \ legal costs and other expenses incurred and that are past due under the Note \nand the Security\
      \ Instrument. \n \nThe Servicer must not charge or collect from the Borrower an amount that exceeds\
      \ the \nexpense limits specified in Exhibit 57A, except in cases where a higher expense amount \n\
      is legally allowable and recoverable. In addition, the payment must not include \nreimbursement\
      \ for costs the Servicer incurred if applicable law prohibits collection of \nthose costs from the\
      \ Borrower. \n \n(ii) Partial reinstatement \n \nA partial reinstatement occurs when the Borrower\
      \ makes at least one full contractual \nmonthly payment on a delinquent Mortgage but does not bring\
      \ the Mortgage current. \nServicers must report the loan level transaction in accordance with Section\
      \ 8303.3(j). \n \n(iii)Partial reinstatement and repayment plan \n \nA partial reinstatement should\
      \ be coupled with a repayment plan to restore a delinquent \nMortgage to current status, but doing\
      \ so is not mandatory. When processing a repayment \nplan: \n \n■ The Borrower must pay an amount\
      \ that: \n \n❑ Equals or exceeds at least one full contractual monthly payment on a delinquent \n\
      \ \n❑ Is less than the total delinquent amount due, including delinquent principal and \ninterest,\
      \ advances, legal costs and other expenses incurred and that are past due \nunder the Note and the\
      \ Security Instrument \n \n\n \n \n \n \nPage 9203-11 \n■ The Borrower must agree to a repayment\
      \ plan that provides for payment of the \nremaining arrearage, includes a stipulation that suspends\
      \ the foreclosure proceedings \nduring the repayment plan and allows the Servicer to recommence\
      \ foreclosure at the \npoint the foreclosure was suspended if the Borrower defaults on the repayment\
      \ plan, \nunless otherwise prohibited by applicable law. \n \nNote: Exhibit 93, Evaluation Notices,\
      \ includes a model repayment plan \ntemplate and a model reinstatement template that the Servicer\
      \ may combine \nand amend as necessary to comply with the requirements of this section and \n \n\
      ■ The Servicer must not charge or collect from the Borrower an amount that exceeds \nthe expense\
      \ limits specified in Exhibit 57, 1- to 4-Unit Property Approved Expense \nAmounts, and Exhibit\
      \ 57A unless those amounts were approved by Freddie Mac. In \naddition, the payment must not include\
      \ reimbursement for costs the Servicer incurred \nif applicable law prohibits collection of those\
      \ costs from the Borrower. \n \nServicers that choose not to pair a partial reinstatement with a\
      \ repayment plan \nmust continue to attempt to resolve the Delinquency and remain responsible for\
      \ \nadhering to foreclosure timeline requirements. \n \n(d) When to accept full reinstatement \n\
      \ \nThe Servicer must accept full reinstatement of a Mortgage if the payment, in cash or certified\
      \ \nfunds, includes the following: \n \n■ Total delinquent amount \n \n■ Accrued interest and unpaid\
      \ principal \n \n■ Actual legal costs, including any advances and additional expenses incurred \n\
      \ \n■ Costs for BPO, if applicable \n \n■ Inspection fees \n \n■ Accrued late charges. \n \nWith\
      \ the exception of inspection fees, regardless of expenses incurred, the Servicer must not \ncharge\
      \ the Borrower an amount that exceeds the expense limits specified in Exhibit 57A. In \naddition,\
      \ the payment must not include reimbursement for costs the Servicer incurred if State \nlaw prohibits\
      \ collection of those costs from the Borrower. \n \nThe Servicer must not refuse to accept a full\
      \ reinstatement if the Borrower offers to pay all \namounts due except for the cost of the BPO,\
      \ inspection fees and accrued late charges. The \nServicer may make arrangements with the Borrower\
      \ to pay the late charges after the \n\n \n \n \n \nPage 9203-12 \nMortgage is reinstated. If the\
      \ Borrower can pay all arrearages, inspection fees and costs, \nexcept for the cost of the BPO,\
      \ the Servicer is not required to collect the BPO cost from the \nBorrower or remit the cost of\
      \ the BPO to Freddie Mac. The Servicer must document the \nreason for nonremittance of the BPO cost\
      \ in the file. \n \nThe Servicer must collect the cost of the BPO before it can collect any accrued\
      \ late charges. \n \n(e) When to accept partial reinstatement of a Mortgage in foreclosure \n \n\
      The Servicer must accept partial reinstatement of a Mortgage referred to foreclosure if the \nfollowing\
      \ conditions are met. \n \n1. The Borrower submits payment in cash or certified funds of: \n \n\
      ■ All outstanding legal fees and related expenses, in amounts not to exceed the expense \nlimits\
      \ specified in Exhibit 57A, and \n \n■ An amount equal to, at a minimum, the first payment due under\
      \ the repayment plan \n \n2. If there is an Escrow account on the Mortgage, the Borrower must enter\
      \ into a repayment \nplan with the Servicer that includes an agreement to repay the remaining delinquent\
      \ \ninterest, principal and Escrow (if applicable) and the scheduled monthly payments, no \nlater\
      \ than 12 months from the date the Servicer receives the partial reinstatement funds. \n \nThe repayment\
      \ plan must be in writing if the plan exceeds three months. If the Mortgage \nwas referred to foreclosure\
      \ prior to extending the repayment plan, the Borrower must \nmake the first payment under the agreement\
      \ in order to accept the terms of the plan. If \nthere is no Escrow account on the Mortgage, the\
      \ Servicer must establish one if the \nrepayment period exceeds three months (unless prohibited\
      \ by applicable law) and then \nmay extend the repayment period to no more than 18 months without\
      \ Freddie Mac’s \n \nThe plan must state: \n \n■ The amount of the partial reinstatement payment\
      \ \n \n \n■ Beginning and end dates of the repayment period \n \n \n■ That the Borrower must pay\
      \ all scheduled monthly payments during the period of the \n \n\n \n \n \n \nPage 9203-13 \n \n\
      ■ The Borrower agrees that the foreclosure proceedings are suspended during the \nrepayment plan\
      \ and that the Servicer is entitled to recommence foreclosure at the \npoint the foreclosure was\
      \ suspended if the Borrower defaults on the repayment plan \n \nExhibit 93, includes a model repayment\
      \ plan template and model reinstatement template \nthat the Servicer may combine and amend as necessary\
      \ to comply with the requirements \nof this section and applicable law. \n \n3. The Borrower must\
      \ submit information demonstrating his or her financial ability to make \n \n■ Partial reinstatement\
      \ payment \n \n■ Repayment plan payments (including the scheduled monthly payment) on a monthly\
      \ \n \n■ Monthly payments at the end of the repayment plan \n \nAt the end of the repayment plan,\
      \ the Servicer may make arrangements with the Borrower to \ncollect accrued late charges, inspection\
      \ fees and the cost of the BPO. However, the payment \nmust not include reimbursement for costs\
      \ the Servicer incurred if State law prohibits \ncollection of those costs from the Borrower. \n\
      \ \nIf the Servicer or the Borrower propose a partial reinstatement plan that does not meet \nFreddie\
      \ Mac’s criteria, but the Servicer believes it will result in the Borrower’s reinstatement \nof\
      \ the Mortgage, the Servicer must submit the plan on Form 105 to Freddie Mac (see \nDirectory 5)\
      \ for consideration. \n \n(f) Reporting and processing the reinstatement \n \n(i) Processing partial\
      \ reinstatements and repayment plans \n \nThe Servicer must report all Mortgages subject to a repayment\
      \ plan via Resolve as \n \nThe Servicer must also notify Freddie Mac via an EDR transmission reflecting\
      \ default \naction code 20 (Reinstatement (Partial)) within three Business Days of the month \n\
      following the month in which it accepted a partial reinstatement of a Mortgage without a \nrepayment\
      \ plan that was reported in foreclosure in the previous month and needs to be \nmoved from foreclosure\
      \ status to delinquent status. \n \n \n\n \n \n \n \nPage 9203-14 \n \nIf the Mortgage has been\
      \ inactivated by Freddie Mac, the Servicer must report partial \nreinstatement in the Loan-Level\
      \ Transaction as required in Section 8303.3(j). \n \n(ii) Processing requirements \n \nIf the Servicer\
      \ accepts a full or partial reinstatement on a Mortgage that is or was in \nforeclosure, then it\
      \ must process the transaction as follows: \n \n1. Take all necessary actions to prevent additional\
      \ foreclosure expenses from being \nincurred, if applicable \n \n2. Pay any foreclosure expenses\
      \ that were actually incurred \n \n3. Apply any remaining funds to the Mortgage \n \n4. Return the\
      \ Note, if appropriate, with a paper copy of the original or electronic or \nsystem-generated version\
      \ of Form 1036, Request for Physical or Constructive \nPossession of Documents, to the Document\
      \ Custodian by certified mail. \n \nIf one of Freddie Mac’s Designated Custodians is holding the\
      \ Note, submit the Note \nand any additional documentation, if required, as directed by the Designated\
      \ \n \nSeller/Servicers that use The Bank of New York Mellon Trust Company, N.A., as \nDesignated\
      \ Custodian, and use its web-based process will include a copy of the \nelectronically generated\
      \ 1036 Release Receipt Report when returning such items to \nthe Designated Custodian (see Section\
      \ 8107.1). \n \n(iii)Additional requirements for Mortgages with buydown funds \n \nAdditional requirements\
      \ for Mortgages with buydown funds are as follows: \n■ When processing a reinstatement for a Mortgage\
      \ subject to a temporary subsidy \nin a buydown account to bring a delinquent Mortgage current unless\
      \ it is required per \nthe terms of the buydown agreement \n \n■ Upon reinstatement of a Mortgage\
      \ that is subject to a temporary subsidy buydown \nplan, the Borrower must resume their monthly\
      \ payment amount as specified in the \nterms of the buydown agreement, subject to applicable law\
      \ and the terms of the \nbuydown agreement* \n \n \n\n \n \n \n \nPage 9203-15 \n \n \n(g) Reimbursement\
      \ of expenses related to reinstatements \n \nIf applicable federal, State or local law prohibits\
      \ collection of incurred expenses (e.g., legal \nfees and/or legal costs) from the Borrower upon\
      \ reinstatement of the Mortgage, Freddie Mac \nwill reimburse certain expenses the Servicer incurs.\
      \ \n \nNote: See Section 9701.1(e)(iv) regarding unrecoverable expenses. \n9203.2: Repayment plan\
      \ requirements and reporting \n(04/27/26) \nthe new requirements prior to the mandatory October\
      \ 1, 2026 version of this section if they \n \n \n■ What is a repayment plan? \n \n■ Repayment plan\
      \ requirements \n \n■ Additional requirements for Mortgages with buydown funds \n \n■ Servicer approval\
      \ authority for repayment plans \n \n■ Reporting repayment plans \n \n(a) What is a repayment plan?\
      \ \n \nA repayment plan is an agreement between the Servicer and a Borrower that gives the \nBorrower\
      \ a defined period of time to reinstate the Mortgage by paying normal regular \npayments plus an\
      \ additional agreed upon amount in repayment of the Delinquency. \n \n(b) Repayment plan requirements\
      \ \n \n\n \n \n \n \nPage 9203-16 \n(i) Repayment plan requirements \n \nFor a Borrower to enter\
      \ into a repayment plan, the Borrower must have the financial \ncapacity to bring the Mortgage current.\
      \ \n \nAny repayment plan must: \n \n1. Lead to full reinstatement or payoff at the conclusion of\
      \ the plan \n \n2. Be in writing and must specify: \n \n \n■ The beginning and end dates of the\
      \ repayment period \n \n \n■ That the Borrower must pay all scheduled monthly payments during the\
      \ period of \n \n \n■ That the Borrower agrees that the foreclosure proceedings are suspended during\
      \ \nthe repayment plan and that the Servicer is entitled to recommence foreclosure at \nthe point\
      \ the foreclosure was suspended, if applicable, if the Borrower defaults on \n \nExhibit 93, Evaluation\
      \ Notices, includes a model repayment plan that a Servicer may \nuse and amend as necessary to comply\
      \ with the requirements of this section and \n \n3. Be sent to the Borrower. The document does not\
      \ have to be signed by the Borrower \nor returned to the Servicer as a condition of the repayment\
      \ plan. However, the \nBorrower must make the first payment due if the Mortgage is in foreclosure\
      \ at the \ntime the repayment plan offer is extended in order to accept the terms of the plan. The\
      \ \nrepayment agreement must then contain a stipulation that the Servicer is entitled to \nrecommence\
      \ foreclosure at the point the foreclosure was suspended if the Borrower \ndefaults on the repayment\
      \ plan, unless otherwise prohibited by applicable law. \n \nThe Servicer must keep as part of the\
      \ Mortgage file: \n \n■ The repayment plan (do not send Freddie Mac a copy) \n \n\n \n \n \n \n\
      Page 9203-17 \n■ The specifics of the repayment plan and the date the Servicer negotiated it with\
      \ \n \n■ When the Servicer sent it to the Borrower, if the plan exceeds three months \n \n■ The\
      \ reason the Servicer agreed to the repayment plan \n \n4. Have a term greater than one month and\
      \ less than or equal to 12 months, unless a \ngreater term is approved by Freddie Mac in writing\
      \ or otherwise permitted for \nrepayment of delinquent taxes, as outlined in Section 9203.2(c) \n\
      \ \nThe repayment plan may include any accrued late charges due from the Borrower at the \ntime\
      \ the Servicer entered into the repayment plan with the Borrower. However, if the \nBorrower is\
      \ paying as stipulated in the agreement, the Servicer must not accrue or collect \nlate charges\
      \ from the Borrower during the repayment plan. If the Borrower defaults on \nthe terms of the repayment\
      \ plan, late charge accrual may recommence from the date the \nBorrower defaulted on the plan. \n\
      \ \n(ii) Failed repayment plan \n \nOnce a Borrower accepts a repayment plan, the Borrower must\
      \ meet the terms specified \nin the repayment plan agreement. The repayment plan has failed if:\
      \ \n \n■ The Servicer determines that the Borrower has failed to meet the terms specified in \n\
      the repayment plan agreement \n \n■ The Borrower no longer has the financial capacity to bring the\
      \ Mortgage current \n \n■ The Borrower accepts a repayment plan and does not make the total monthly\
      \ \nrepayment plan payment by the end of the month in which the repayment plan \n \n(iii) Failed\
      \ repayment plan – solicitations \n \nand Freddie Mac Flex Modification® offers following an unsuccessful\
      \ repayment plan. \n \ntotal monthly repayment plan payment \n\n \n \n \n \nPage 9203-18 \nby the\
      \ end of the month in which it is \ndue (“fails a repayment plan”), and the \nPayment Deferral by\
      \ the 15th day of the \nfollowing month (i.e., the 15th day of the \nmonth following the month Borrower\
      \ fails a \nRepayment Plan Solicitation Cover Letter, with Exhibit 1100, Payment Deferral \napplicable\
      \ law. While use of Exhibits 1105 and 1100 is optional, it reflects the \nminimum level of information\
      \ that the Servicer must communicate and illustrates a \nlevel of specificity that complies with\
      \ the requirements of the Guide. \noutreach and communication method \nsolicitation if, as of the\
      \ date of evaluation: \n■ The Mortgage is 6 months delinquent, or \ncumulative deferred past-due\
      \ principal and interest payments resulting from nondisaster Payment Deferrals \nmonth of the solicitation\
      \ after receipt of the Borrower’s full monthly contractual \n\n \n \n \n \nPage 9203-19 \nBorrower\
      \ must also make his or her full monthly contractual payment during the \nprocessing month. The\
      \ Servicer must complete the Payment Deferral within the \nprocessing month after receipt of the\
      \ Borrower’s full monthly contractual payment \nduring that month. \nfollowing the month the Borrower\
      \ fails a \nDeferral, but did not accept the \n\n \n \n \n \nPage 9203-20 \nModification Trial Period\
      \ Plan Solicitation Offer – not based on an evaluation of a \nBorrower Response Package evaluation\
      \ notice, or its equivalent. Exhibits 1191 and 93 \n \n(c) Additional requirements for Mortgages\
      \ with buydown funds \n \n■ When processing repayment plans for Mortgages subject to a temporary\
      \ subsidy \nbuydown plan in accordance with Section 4204.3, the Servicer must not apply funds in\
      \ a \nbuydown account to reduce the total amount to be repaid in accordance with the \nrequirements\
      \ of a repayment plan as specified in Section 9203.2(b)(i) unless it is required \nunder the terms\
      \ of the applicable buydown agreement \n \n■ Upon entering a repayment plan, the Borrower must resume\
      \ their payment amount as \nspecified in the terms of the buydown agreement, subject to applicable\
      \ law and the terms \nof the buydown agreement. In addition, the Borrower must pay the amount required\
      \ to \nresolve the Delinquency within the agreed-upon repayment plan term.* \n \navailable or the\
      \ buydown funds are not paid, the Borrower is responsible to continue to \nmake full monthly Mortgage\
      \ payments as required by the terms of the Note (plus the \namount required to resolve the delinquency\
      \ within the agreed-upon repayment plan term, \nif any such amounts remain). \n \n■ In addition\
      \ to the repayment plan requirements in Section 9203.2(b)(i), the Servicer must \nmake the appropriate\
      \ changes to the evaluation notice as necessary to reflect any \nbuydown fund contributions and\
      \ the Borrower's portion of the payment in accordance \nwith the buydown agreement \n \n \n* Application\
      \ of each monthly payment must continue to be applied in accordance with the \n \n(d) Servicer approval\
      \ authority for repayment plans \n\n \n \n \n \nPage 9203-21 \n \nServicers may use Resolve® to\
      \ report repayment plans to Freddie Mac. Servicers should \nrefer to Resolve Online Help for details\
      \ on the use of the Resolve to report repayment plans. \n \nNote: When repayment plans are submitted\
      \ via Resolve, the system will report the associated \nEDR default action codes on behalf of the\
      \ Servicer. \n \nThe Servicer must obtain Freddie Mac’s approval for a repayment plan that exceeds\
      \ 12 \nmonths in duration unless the repayment plan includes the repayment of delinquent taxes.\
      \ To \nobtain Freddie Mac’s approval, the Servicer must submit the following to Freddie Mac (see\
      \ \nDirectory 5): \n \n1. Form 105, Multipurpose Loan Servicing Transmittal \n \n2. The complete\
      \ Borrower Response Package. (See Section 9102.5 for a description of the \nBorrower Response Package.)\
      \ \n \nThe Servicer may approve a repayment plan that has a term greater than one month and less\
      \ \nthan or equal to 12 months without obtaining Freddie Mac’s approval, as outlined in the table\
      \ \n \n■ The monthly \npayment amount must \nnot exceed 150% of \nthe contractual \nMortgage payment\
      \ \n(including taxes and \ninsurance if the \nServicer is collecting \nEscrow for such \nexpenses)\
      \ \n■ The Borrower may \nmake a payment that \nis applied prior to the \nServicer’s repayment \n\
      plan evaluation (i.e., a \nBorrower may make a \npayment that may \nhave a favorable \n■ The Mortgage\
      \ is less \nthan or equal to 90 \ndays delinquent; and \nterm does not exceed \nsix months in length\
      \ \nPackage is not required; \n■ Quality right party contact is \nrequired to verify that the \n\
      ■ The Mortgage is \ngreater than 90 days \ndelinquent; or \nterm exceeds six \nmonths in length\
      \ \nPackage is required \n■ Repayment plan terms that \nexceed 12 months in length \nmust be submitted\
      \ to \nFreddie Mac for review and \n■ The Servicer must evaluate \nthe Borrower for a \n\n \n \n\
      \ \n \nPage 9203-22 \nimpact to the \nrepayment plan terms) \nmust be in writing \n(refer to Section\
      \ \n9203.2(b) for \nrequirements for the \nwritten notice.) \nstreamlined offer for a \nModification\
      \ if the Mortgage \nis greater than 90 days \ndelinquent. However, if the \nServicer has established\
      \ \nand verified that the \na repayment plan, then the \nServicer must offer the \nBorrower a repayment\
      \ plan. \n \nIn addition, if there is no Escrow account on the Mortgage for taxes, and taxes are\
      \ not current \nor the Borrower has not entered into a repayment plan with the taxing jurisdiction,\
      \ then the \nServicer may approve a repayment plan of up to 18 months under the following conditions:\
      \ \n \n■ The Servicer must pay the delinquent taxes, and \n \n■ The Servicer must set up an Escrow\
      \ account for future taxes if the repayment period \nexceeds three months. In this case only, the\
      \ Servicer may extend the repayment period to \nno more than 18 months. \n \nThe Servicer must document\
      \ its reasons for approving a repayment plan in the Mortgage file. \n \n(e) Reporting repayment\
      \ plans \n \nIn accordance with Section 9102.6, the Servicer must: \n \n■ Notify Freddie Mac via\
      \ an EDR transmission with specific repayment plan activity after \nthe Servicer has entered into\
      \ a repayment plan with a Borrower \n \n■ Receive a repayment plan payment to validate the repayment\
      \ plan and report default \naction code 12 (Repayment Plan) once the initial repayment plan payment\
      \ is received \n \n■ Continue reporting this code for each month of the repayment period, except\
      \ for the last \nmonth of the repayment period in which the Mortgage will be fully reinstated \n\
      \ \n\n \n \n \n \nPage 9203-23 \n■ Continue to report that the Borrower is in a repayment plan until\
      \ the Borrower has fully \nreinstated the Mortgage or the Borrower defaults on the repayment plan\
      \ \n \ndiscontinue reporting default action code 12. \n \n9203.2: Repayment plan requirements and\
      \ reporting \n(Future effective date 10/01/26) \n \n■ What is a repayment plan? \n \n■ Repayment\
      \ plan requirements \n \n■ Additional requirements for Mortgages with buydown funds \n \n■ Servicer\
      \ approval authority for repayment plans \n \n■ Reporting repayment plans \n \n(a) What is a repayment\
      \ plan? \n \nA repayment plan is an agreement between the Servicer and a Borrower that gives the\
      \ \nBorrower a defined period of time to reinstate the Mortgage by paying normal regular \npayments\
      \ plus an additional agreed upon amount in repayment of the Delinquency. \n \n(b) Repayment plan\
      \ requirements \n \n(i) Repayment plan requirements \n \nFor a Borrower to enter into a repayment\
      \ plan, the Borrower must have the financial \ncapacity to bring the Mortgage current. \n \nAny\
      \ repayment plan must: \n \n1. Lead to full reinstatement or payoff at the conclusion of the plan\
      \ \n \n2. Be in writing and must specify: \n \n \n\n \n \n \n \nPage 9203-24 \n■ The beginning and\
      \ end dates of the repayment period \n \n \n■ That the Borrower must pay all scheduled monthly payments\
      \ during the period of \n \n \n■ That the Borrower agrees that the foreclosure proceedings are suspended\
      \ during \nthe repayment plan and that the Servicer is entitled to recommence foreclosure at \n\
      the point the foreclosure was suspended, if applicable, if the Borrower defaults on \n \nExhibit\
      \ 93, Evaluation Notices, includes a model repayment plan that a Servicer may \nuse and amend as\
      \ necessary to comply with the requirements of this section and \n \n3. Be sent to the Borrower.\
      \ The document does not have to be signed by the Borrower \nor returned to the Servicer as a condition\
      \ of the repayment plan. However, the \nBorrower must make the first payment due if the Mortgage\
      \ is in foreclosure at the \ntime the repayment plan offer is extended in order to accept the terms\
      \ of the plan. The \nrepayment agreement must then contain a stipulation that the Servicer is entitled\
      \ to \nrecommence foreclosure at the point the foreclosure was suspended if the Borrower \ndefaults\
      \ on the repayment plan, unless otherwise prohibited by applicable law. \n \nThe Servicer must keep\
      \ as part of the Mortgage file: \n \n■ The repayment plan (do not send Freddie Mac a copy) \n \n\
      ■ The specifics of the repayment plan and the date the Servicer negotiated it with \n \n■ When the\
      \ Servicer sent it to the Borrower, if the plan exceeds three months \n \n■ The reason the Servicer\
      \ agreed to the repayment plan \n \n4. Have a term greater than one month and less than or equal\
      \ to 12 months, unless a \ngreater term is approved by Freddie Mac in writing or otherwise permitted\
      \ for \nrepayment of delinquent taxes, as outlined in Section 9203.2(c) \n \nThe repayment plan\
      \ may include any accrued late charges due from the Borrower at the \ntime the Servicer entered\
      \ into the repayment plan with the Borrower. However, if the \nBorrower is paying as stipulated\
      \ in the agreement, the Servicer must not accrue or collect \n\n \n \n \n \nPage 9203-25 \nlate\
      \ charges from the Borrower during the repayment plan. If the Borrower defaults on \nthe terms of\
      \ the repayment plan, late charge accrual may recommence from the date the \nBorrower defaulted\
      \ on the plan. \n \n(ii) Failed repayment plan \n \nOnce a Borrower accepts a repayment plan, the\
      \ Borrower must meet the terms specified \nin the repayment plan agreement. The repayment plan has\
      \ failed if: \n \n■ The Servicer determines that the Borrower has failed to meet the terms specified\
      \ in \nthe repayment plan agreement \n \n■ The Borrower no longer has the financial capacity to\
      \ bring the Mortgage current \n \n■ The Borrower accepts a repayment plan and does not make the\
      \ total monthly \nrepayment plan payment by the end of the month in which the repayment plan \n\
      \ \n(iii) Failed repayment plan – solicitations \n \nand Freddie Mac Flex Modification® offers following\
      \ an unsuccessful repayment plan. \n \ntotal monthly repayment plan payment \nby the end of the\
      \ month in which it is \ndue (“fails a repayment plan”), and the \nPayment Deferral by the 15th\
      \ day of the \nfollowing month (i.e., the 15th day of the \nmonth following the month Borrower fails\
      \ a \n\n \n \n \n \nPage 9203-26 \nRepayment Plan Solicitation Cover Letter, with Exhibit 1100,\
      \ Payment Deferral \napplicable law. While use of Exhibits 1105 and 1100 is optional, it reflects\
      \ the \nminimum level of information that the Servicer must communicate and illustrates a \nlevel\
      \ of specificity that complies with the requirements of the Guide. \noutreach and communication\
      \ method \nsolicitation if, as of the date of evaluation: \n■ The Mortgage is 6 months delinquent,\
      \ or \ncumulative deferred past-due principal and interest payments resulting from nondisaster Payment\
      \ Deferrals \nmonth of the solicitation after receipt of the Borrower’s full monthly contractual\
      \ \nBorrower must also make his or her full monthly contractual payment during the \nprocessing\
      \ month. The Servicer must complete the Payment Deferral within the \nprocessing month after receipt\
      \ of the Borrower’s full monthly contractual payment \nduring that month. \n\n \n \n \n \nPage 9203-27\
      \ \nfollowing the month the Borrower fails a \nDeferral, but did not accept the \nModification Trial\
      \ Period Plan Solicitation Offer – not based on an evaluation of a \nBorrower Response Package evaluation\
      \ notice, or its equivalent. Exhibits 1191 and 93 \n \n(c) Additional requirements for Mortgages\
      \ with buydown funds \n \n■ When processing repayment plans for Mortgages subject to a temporary\
      \ subsidy \nbuydown plan in accordance with Section 4204.3, the Servicer must not apply funds in\
      \ a \nbuydown account to reduce the total amount to be repaid in accordance with the \nrequirements\
      \ of a repayment plan as specified in Section 9203.2(b)(i) unless it is required \nunder the terms\
      \ of the applicable buydown agreement \n \n■ Upon entering a repayment plan, the Borrower must resume\
      \ their payment amount as \nspecified in the terms of the buydown agreement, subject to applicable\
      \ law and the terms \n\n \n \n \n \nPage 9203-28 \nof the buydown agreement. In addition, the Borrower\
      \ must pay the amount required to \nresolve the Delinquency within the agreed-upon repayment plan\
      \ term.* \n \navailable or the buydown funds are not paid, the Borrower is responsible to continue\
      \ to \nmake full monthly Mortgage payments as required by the terms of the Note (plus the \namount\
      \ required to resolve the delinquency within the agreed-upon repayment plan term, \nif any such\
      \ amounts remain). \n \n■ In addition to the repayment plan requirements in Section 9203.2(b)(i),\
      \ the Servicer must \nmake the appropriate changes to the evaluation notice as necessary to reflect\
      \ any \nbuydown fund contributions and the Borrower's portion of the payment in accordance \nwith\
      \ the buydown agreement \n \n \n* Application of each monthly payment must continue to be applied\
      \ in accordance with the \n \n(d) Servicer approval authority for repayment plans \n \nServicers\
      \ must use Resolve® to report repayment plans to Freddie Mac. Servicers should \nrefer to Resolve\
      \ Online Help for details on the use of the Resolve to report repayment plans. \n \nNote: When repayment\
      \ plans are submitted via Resolve, the system will report the associated \nEDR default action codes\
      \ on behalf of the Servicer. \n \nThe Servicer must obtain Freddie Mac’s approval for a repayment\
      \ plan that exceeds 12 \nmonths in duration unless the repayment plan includes the repayment of\
      \ delinquent taxes. To \nobtain Freddie Mac’s approval, the Servicer must submit the following to\
      \ Freddie Mac (see \nDirectory 5): \n \n1. Form 105, Multipurpose Loan Servicing Transmittal \n\
      \ \n2. The complete Borrower Response Package. (See Section 9102.5 for a description of the \nBorrower\
      \ Response Package.) \n \nThe Servicer may approve a repayment plan that has a term greater than\
      \ one month and less \nthan or equal to 12 months without obtaining Freddie Mac’s approval, as outlined\
      \ in the table \n \n\n \n \n \n \nPage 9203-29 \n■ The monthly \npayment amount must \nnot exceed\
      \ 150% of \nthe contractual \nMortgage payment \n(including taxes and \ninsurance if the \nServicer\
      \ is collecting \nEscrow for such \nexpenses) \n■ The Borrower may \nmake a payment that \nis applied\
      \ prior to the \nServicer’s repayment \nplan evaluation (i.e., a \nBorrower may make a \npayment\
      \ that may \nhave a favorable \nimpact to the \nrepayment plan terms) \nmust be in writing \n(refer\
      \ to Section \n9203.2(b) for \nrequirements for the \nwritten notice.) \n■ The Mortgage is less\
      \ \nthan or equal to 90 \ndays delinquent; and \nterm does not exceed \nsix months in length \n\
      Package is not required; \n■ Quality right party contact is \nrequired to verify that the \n■ The\
      \ Mortgage is \ngreater than 90 days \ndelinquent; or \nterm exceeds six \nmonths in length \nPackage\
      \ is required \n■ Repayment plan terms that \nexceed 12 months in length \nmust be submitted to\
      \ \nFreddie Mac for review and \n■ The Servicer must evaluate \nthe Borrower for a \nstreamlined\
      \ offer for a \nModification if the Mortgage \nis greater than 90 days \ndelinquent. However, if\
      \ the \nServicer has established \nand verified that the \na repayment plan, then the \nServicer\
      \ must offer the \nBorrower a repayment plan. \n \nIn addition, if there is no Escrow account on\
      \ the Mortgage for taxes, and taxes are not current \nor the Borrower has not entered into a repayment\
      \ plan with the taxing jurisdiction, then the \nServicer may approve a repayment plan of up to 18\
      \ months under the following conditions: \n \n\n \n \n \n \nPage 9203-30 \n■ The Servicer must pay\
      \ the delinquent taxes, and \n \n■ The Servicer must set up an Escrow account for future taxes if\
      \ the repayment period \nexceeds three months. In this case only, the Servicer may extend the repayment\
      \ period to \nno more than 18 months. \n \nThe Servicer must document its reasons for approving\
      \ a repayment plan in the Mortgage file. \n \n(e) Reporting repayment plans \n \nServicers must\
      \ report repayment plans in Resolve, in accordance with criteria outlined in \nResolve Online Help,\
      \ no later than the last day of the month in which a repayment plan \nstarts. \n \nsubmit a cancelation\
      \ request in Resolve. \n9203.3: Forbearance plans and requirements \n(05/01/26) \nthe new requirements\
      \ prior to the mandatory October 1, 2026 version of this section if they \n \n \n■ What is a forbearance?\
      \ \n \n■ Requirements for a forbearance plan \n \n■ Borrower contact requirements when transitioning\
      \ from a forbearance plan \n \n■ Borrowers in a Trial Period Plan \n \n■ Forbearance plan termination\
      \ \n \n■ Other forbearance plan conditions and requirements \n \n(a) What is a forbearance? \n \n\
      A forbearance plan is a written agreement between the Servicer and the Borrower (or \ndeceased Borrower’s\
      \ estate) that reflects the terms of the forbearance, including whether the \nBorrower may make\
      \ either reduced or no monthly payments for a specific period of time. If \n\n \n \n \n \nPage 9203-31\
      \ \nthe Servicer achieves quality right party contact and the Borrower meets the eligibility \n\
      criteria for a forbearance plan in accordance with Section 9203.3(b), the Servicer must offer: \n\
      \ \n■ An initial forbearance term for a period of one to three months, and, if necessary \n \n■\
      \ One or more forbearance term extensions of one to three months \n \nThe forbearance plan may not\
      \ be extended beyond a date that would cause the Delinquency \nto exceed a cumulative total of 12\
      \ months of the Borrower’s contractual monthly Mortgage \npayment, including taxes and insurance,\
      \ if the Servicer is collecting Escrow for those \nexpenses, without prior approval from Freddie\
      \ Mac. \n \nPrior to the expiration of the initial and any extension to the forbearance plan, the\
      \ Servicer \nmust evaluate the Borrower’s eligibility for an extension of the initial forbearance\
      \ plan based \non quality right party contact. Each forbearance plan evaluation, including an evaluation\
      \ for a \nforbearance plan extension, must be completed in accordance with all eligibility requirements\
      \ \ndescribed in this section and Sections 9203.3(b) through 9203.3(f). Additionally, there is no\
      \ \nlimit on the number of forbearance plans that an eligible Borrower can receive over the life\
      \ \nof the Mortgage. \n \nExhibit 93, Evaluation Notices, includes forbearance agreements that a\
      \ Servicer may use but \nmust amend as necessary to comply with the requirements of this section,\
      \ Sections 9203.3(b) \nthrough 9203.3(f) and applicable law. \n \nAt the end of the forbearance\
      \ period, the Borrower must cure the Delinquency through one of \nthe following options: \n \n■\
      \ Full reinstatement of the Mortgage \n \n■ Partial reinstatement followed by a repayment plan \n\
      \ \n■ Payment of the Mortgage in full \n \n■ A repayment plan \n \n■ A loan modification \n \n■\
      \ Pay off the Mortgage through a short sale or deed-in-lieu of foreclosure \n \nA loan modification\
      \ is a type of workout option that enables the Borrower to retain \nhomeownership (see Section 9201.6).\
      \ If the Borrower can no longer afford to retain the \nproperty, the Servicer must pursue a workout\
      \ option to liquidate the Borrower’s interest in \nthe property (see Section 9201.6), such as a\
      \ short sale, deed-in-lieu of foreclosure, a workout \nMortgage assumption, or a simultaneous modification\
      \ and assumption. \n \nWorkout options and Servicing Mortgages impacted by disaster requirements\
      \ \n\n \n \n \n \nPage 9203-32 \nFreddie Mac Flex Modification® \n \n(b) Requirements for a forbearance\
      \ plan \n \nServicers may use Resolve® to report forbearance plans to Freddie Mac. Servicers should\
      \ \nrefer to Resolve Online Help for details on the use of the Resolve to report forbearance \n\
      plans. \n \nNote: When forbearance plans are submitted via Resolve, the system will report the \n\
      associated EDR default action codes on behalf of the Servicer. \n \n \n(i) Borrower eligibility\
      \ requirements for a forbearance plan \n \nTo be eligible for a forbearance plan, the Borrower:\
      \ \n \n■ Must have an eligible hardship as described in Section 9202.1(b) and Form 710, \nMortgage\
      \ Assistance Application. The Borrower’s hardship may be verbally stated. \nThe Servicer must report\
      \ the hardship reason via EDR in accordance with Section \n9102.6. \n \n■ May be either current\
      \ or delinquent, but the forbearance plan must not result in an \noverall Mortgage Delinquency that\
      \ exceeds 360 days (i.e., to be in an active \nforbearance plan, the Borrower must not have missed\
      \ more than 12 contractual \nmonthly Mortgage payments) \n \nNote: No Borrower documentation or\
      \ written application (e.g., Form 710 or a Servicer’s \ncustomized equivalent of Form 710) is required\
      \ from the Borrower; however, the \nServicer must achieve quality right party contact in accordance\
      \ with the requirements in \nSection 9102.3(b). \n \n(ii) Mortgage eligibility and exclusions for\
      \ a forbearance plan \n \n\n \n \n \n \nPage 9203-33 \nMortgages secured by the Borrower’s Primary\
      \ Residence, even if vacant, are eligible for \nforbearance. \n \nThe following Mortgages are ineligible\
      \ for forbearance: \n \n■ Mortgages secured by abandoned or condemned properties \n \n■ Mortgages\
      \ secured by second homes or Investment Properties \n \n(iii)Forbearance plan agreement with the\
      \ Borrower \n \nThe Servicer must determine the terms of the forbearance agreement based on \ndiscussions\
      \ with the Borrower. The forbearance agreement: \n \n■ Must be provided to the Borrower in writing\
      \ and signed by the Servicer. The \ndocument does not have to be signed by the Borrower or returned\
      \ to the Servicer as a \ncondition of the forbearance plan. \n \n■ Must indicate the duration of\
      \ the forbearance plan, including the effective date, the \nexpiration date of the forbearance plan\
      \ and, if applicable, the due date of the first \npayment and the amount of such payment. \n \n\
      Note: See Section 9203.3(b)(iv) for additional information about reduced payments \n(if applicable)\
      \ under a forbearance plan. \n \n■ Must state that, at the end of the forbearance period, the Borrower\
      \ must either: \n \n❑ Cure the Delinquency through a full reinstatement, partial reinstatement plus\
      \ \nrepayment plan or a repayment plan, or payoff of the Mortgage, or \n \n❑ Submit a complete Borrower\
      \ Response package to be evaluated for a workout \noption prior to the conclusion of the plan \n\
      \ \nNote: Refer to Sections 9203.1(a) through 9203.2(d) for requirements on \nreinstatements and\
      \ repayment plans and to Chapters 9206 through 9210 for \nrequirements on workout options. \n \n\
      ■ Must state that foreclosure proceedings are suspended during the forbearance period \nso long\
      \ as the Borrower complies with the forbearance agreement and that, unless \nprohibited by applicable\
      \ law, the Servicer may recommence foreclosure at the point it \nwas suspended if the Borrower defaults\
      \ on the forbearance plan \n \n■ May include a requirement to pay any accrued late charges due from\
      \ the Borrower at \nthe time the Servicer entered into the forbearance agreement with the Borrower.\
      \ The \nServicer must not accrue or collect late charges from the Borrower during the \nforbearance\
      \ period, or any subsequent repayment plan period, if the Borrower is \n\n \n \n \n \nPage 9203-34\
      \ \ncomplying with the terms of such agreements. If the Borrower defaults on the terms \nof the\
      \ forbearance agreement, late charge accrual may recommence from the date the \nBorrower defaulted\
      \ on the agreement. \n \n(iv) Reduced payments under a forbearance plan \n \nIf a monthly payment\
      \ is required under the terms of a forbearance plan: \n \n■ Such payment must be less than the Borrower’s\
      \ monthly contractual Mortgage \npayment, including, as applicable, principal, interest and Escrow\
      \ payments \n \n■ The Servicer must receive such payment from the Borrower on or before the last\
      \ day \nof the month in which it is due. If the Borrower fails to make timely forbearance \npayments,\
      \ the forbearance plan must be canceled unless the Servicer determines that \nthere are mitigating\
      \ circumstances that caused the payment to be late. \n \nIf there are mitigating circumstances that\
      \ prevents the Borrower from making the \nrequired reduced payment, the Servicer may determine whether\
      \ to amend the \nforbearance plan to further reduce the required payment or allow the Borrower to\
      \ make \nno payments under a new forbearance plan agreement. \n \nIf the Borrower fails to make\
      \ timely payments and there are no mitigating \ncircumstances, the Servicer must: \n \n■ Evaluate\
      \ the Borrower for other alternatives to foreclosure (e.g., solicit the Borrower \nfor a complete\
      \ Borrower Response Package \n \n■ Conduct an evaluation for a streamlined offering of the Freddie\
      \ Mac Flex \nModification) and otherwise, pursue foreclosure in accordance with Chapter 9301. \n\
      \ \n■ Use good business judgment to determine whether forbearance payments were \nreceived timely\
      \ or if mitigating circumstances (such as a further reduction in income) \ncaused the payment to\
      \ be late. Exceptions to the timely payment requirement must be \ndocumented and retained in the\
      \ Mortgage file. \n \n(c) Borrower contact requirements when transitioning from a forbearance plan\
      \ \n \n(i) Contact requirements \n \nThe Servicer has discretion to determine the appropriate frequency\
      \ to contact the \nBorrower. However, the Servicer must initiate contact no later than 30 days prior\
      \ to any \nforbearance plan end date. Borrower contact must continue until quality right party \n\
      contact is achieved or until the forbearance plan has expired. \n \nIf quality right party contact\
      \ is achieved, the Servicer must determine whether: \n \n\n \n \n \n \nPage 9203-35 \n■ The Borrower’s\
      \ hardship has been resolved \n \n■ The Borrower intends to remain in the Mortgaged Premises \n\
      \ \n■ The Borrower must submit a complete Borrower Response Package to be evaluated \nfor other\
      \ workout or liquidation options; and \n \n■ The Borrower is eligible for a streamlined modification\
      \ offer for a Freddie Mac Flex \nModification under Chapter 9206 \n \nThe Servicer may use alternative\
      \ outreach methods to contact the Borrower as permitted \nby applicable law, including, but not\
      \ limited to, e-mail, text messaging, voice response \nunit technology or a Servicer’s web portal.\
      \ In addition, the Servicer is authorized to mail, \nfax or electronically transmit the Borrower\
      \ Solicitation Package or its equivalent to the \n \n(ii) Post-forbearance plan – solicitations\
      \ \n \nBorrower who was on a forbearance completes the forbearance plan without a solution to \n\
      the Delinquency, the table below provides requirements for Servicers to conduct reviews \nfor proactive\
      \ Payment Deferral and Freddie Mac Flex Modification offers. \n \nPost forbearance plan – Payment\
      \ Deferral \nThe Borrower’s forbearance plan ends \nand the Servicer is unable to establish \nPayment\
      \ Deferral by the 15th day following \nexpiration of the forbearance plan. \n\n \n \n \n \nPage\
      \ 9203-36 \nForbearance Solicitation Cover Letter, with Exhibit 1100, Payment Deferral \napplicable\
      \ law. While use of Exhibits 1102 or 1100 is optional, it reflects the minimum \nlevel of information\
      \ that the Servicer must communicate and illustrates a level of \nspecificity that complies with\
      \ the requirements of the Guide. \nsolicitation and/ or during the processing month if, as of the\
      \ date of evaluation: \n■ The Mortgage is six months delinquent, or \ncumulative deferred past-due\
      \ principal and interest payments resulting from \nPayment Deferrals \nmonth of the solicitation\
      \ or processing month after receipt of the Borrower’s full \nmonthly contractual payment due during\
      \ that month. While the current month’s \npayment remains due because of delinquency and/or cumulative\
      \ deferred payment \nrequirements, the Servicer must send the proactive offer with the condition\
      \ that a \npayment or payments are required to be eligible to complete the Payment Deferral. \n\
      Once the payment or payments have been received and the Mortgage becomes eligible, \nthe Servicer\
      \ can proceed to settlement. \n\n \n \n \n \nPage 9203-37 \nDeferral but did not accept the \nThe\
      \ Servicer must evaluate the Borrower for eligibility for a proactive offer for a Flex \nModification\
      \ in accordance with the requirements of Section 9206.1(c)(iii). \nevaluation of a Borrower Response\
      \ Package evaluation notice, or its equivalent. \nExhibits 1191 and 93 may be altered at the Servicer’s\
      \ discretion as it deems necessary \nto meet the requirements of this section and Chapter 9206 and\
      \ to comply with \ndisclosure and other requirements under applicable law. \n \n(d) Borrowers in\
      \ a Trial Period Plan \n \nIf a Borrower was in a Trial Period Plan prior to entering into a forbearance\
      \ plan, the \nBorrower may be re-evaluated for a new Trial Period Plan within 30 days prior to or\
      \ upon \ncompletion of the forbearance plan. The Servicer must not resume or restart the terms of\
      \ the \nprevious Trial Period Plan prior to the start of the forbearance plan. Instead, the Servicer\
      \ \nmust evaluate the Borrower based on the status of the Mortgage at the time of the new \nevaluation.\
      \ If the Borrower meets all eligibility requirements upon completion of the \nforbearance plan and\
      \ accepts a new Trial Period Plan offer, the Borrower will be required to \nstart a new Trial Period\
      \ Plan. \n \nFor any subsequent modification submissions, the Trial Period Plan prior to the start\
      \ of the \nforbearance plan will not be considered a failed Trial Period Plan for a Freddie Mac\
      \ Flex \nModification evaluation. \n \n\n \n \n \n \nPage 9203-38 \n(e) Forbearance plan termination\
      \ \n \nThe forbearance plan must be terminated if: \n \n■ The Servicer determines that the Borrower\
      \ has failed to meet the terms specified in the \nforbearance plan agreement \n \n■ Any of the eligibility\
      \ criteria for the forbearance plan is no longer satisfied \n \n■ The Servicer becomes aware that\
      \ the Borrower’s hardship is resolved; or \n \n■ The Borrower requests termination of the forbearance\
      \ plan \n \n(f) Other forbearance plan conditions and requirements \n \n(i) Notifying Freddie Mac\
      \ of forbearance plans via EDR \n \nAt the end of the forbearance plan, the Servicer must work with\
      \ the Borrower to cure the \nDelinquency via a reinstatement or repayment plan, or by completing\
      \ a workout option. \nThe Servicer must evaluate the Borrower in accordance with the loss mitigation\
      \ hierarchy \ndescribed in Section 9201.2 and must also comply with the appropriate EDR reporting\
      \ \nrequirement to inform Freddie Mac about the solution entered into. \n \nExample: If the Servicer\
      \ enters into a repayment plan with the Borrower, the Servicer \nmust report the repayment plan\
      \ via EDR according to Section 9203.2(d). \n \nIf the Borrower enters into a workout option that\
      \ brings the account current, such as a \nsettled modification or payment deferral, the Servicer\
      \ must no longer report the EDR \ncode for forbearance. \n \n \n(ii) Forbearance plans for Mortgages\
      \ subject to recourse \n \nFor Mortgages subject to recourse including but not limited to indemnification,\
      \ Servicers \nare strongly encouraged, but not required, to consider eligible Borrowers for a \n\
      forbearance plan. Entering into a forbearance agreement (whether approved by \nFreddie Mac or the\
      \ Servicer) does not waive, delete, alter or supersede any recourse or \nindemnification requirements\
      \ set forth in the Servicer’s Purchase Documents and any \nother documents containing recourse or\
      \ indemnification obligations, and such recourse or \nindemnification obligations will remain in\
      \ full force and effect. \n \n(iii) Credit reporting for Mortgages in a forbearance plan \n \nServicers\
      \ must continue to report a “full-file” status to the four major credit repositories \nfor each\
      \ Mortgage in a forbearance plan in accordance with the Fair Credit Reporting Act \n\n \n \n \n\
      \ \nPage 9203-39 \nand credit bureau standards as provided by the Consumer Data Industry Association.\
      \ See \nExhibit 51, Credit Repositories and Information to Report. \n \n(iv) Servicer policy and\
      \ procedures for forbearance plans \n \nThe Servicer must have written forbearance plan policies\
      \ and procedures describing how \n \n■ Determine the Borrower’s hardship \n \n■ Determine whether\
      \ to require a reduced payment and any payment amount; and \n \n■ Document the Servicer’s decision-making\
      \ process, including, but not limited to, its \napplication of discretion or business judgement\
      \ \n \nThe Servicer must consistently apply these policies and procedures. \n9203.3: Forbearance\
      \ plans and requirements (Future \neffective date 10/01/26) \n \n■ What is a forbearance? \n \n\
      ■ Requirements for a forbearance plan \n \n■ Borrower contact requirements when transitioning from\
      \ a forbearance plan \n \n■ Borrowers in a Trial Period Plan \n \n■ Forbearance plan termination\
      \ \n \n■ Other forbearance plan conditions and requirements \n \n(a) What is a forbearance? \n \n\
      A forbearance plan is a written agreement between the Servicer and the Borrower (or \ndeceased Borrower’s\
      \ estate) that reflects the terms of the forbearance, including whether the \nBorrower may make\
      \ either reduced or no monthly payments for a specific period of time. If \nthe Servicer achieves\
      \ quality right party contact and the Borrower meets the eligibility \ncriteria for a forbearance\
      \ plan in accordance with Section 9203.3(b), the Servicer must offer: \n \n■ An initial forbearance\
      \ term for a period of one to three months, and, if necessary \n \n\n \n \n \n \nPage 9203-40 \n\
      ■ One or more forbearance term extensions of one to three months \n \nThe forbearance plan may not\
      \ be extended beyond a date that would cause the Delinquency \nto exceed a cumulative total of 12\
      \ months of the Borrower’s contractual monthly Mortgage \npayment, including taxes and insurance,\
      \ if the Servicer is collecting Escrow for those \nexpenses, without prior approval from Freddie\
      \ Mac. \n \nPrior to the expiration of the initial and any extension to the forbearance plan, the\
      \ Servicer \nmust evaluate the Borrower’s eligibility for an extension of the initial forbearance\
      \ plan based \non quality right party contact. Each forbearance plan evaluation, including an evaluation\
      \ for a \nforbearance plan extension, must be completed in accordance with all eligibility requirements\
      \ \ndescribed in this section and Sections 9203.3(b) through 9203.3(f). Additionally, there is no\
      \ \nlimit on the number of forbearance plans that an eligible Borrower can receive over the life\
      \ \nof the Mortgage. \n \nExhibit 93, Evaluation Notices, includes forbearance agreements that a\
      \ Servicer may use but \nmust amend as necessary to comply with the requirements of this section,\
      \ Sections 9203.3(b) \nthrough 9203.3(f) and applicable law. \n \nAt the end of the forbearance\
      \ period, the Borrower must cure the Delinquency through one of \nthe following options: \n \n■\
      \ Full reinstatement of the Mortgage \n \n■ Partial reinstatement followed by a repayment plan \n\
      \ \n■ Payment of the Mortgage in full \n \n■ A repayment plan \n \n■ A loan modification \n \n■\
      \ Pay off the Mortgage through a short sale or deed-in-lieu of foreclosure \n \nA loan modification\
      \ is a type of workout option that enables the Borrower to retain \nhomeownership (see Section 9201.6).\
      \ If the Borrower can no longer afford to retain the \nproperty, the Servicer must pursue a workout\
      \ option to liquidate the Borrower’s interest in \nthe property (see Section 9201.6), such as a\
      \ short sale, deed-in-lieu of foreclosure, a workout \nMortgage assumption, or a simultaneous modification\
      \ and assumption. \n \nWorkout options and Servicing Mortgages impacted by disaster requirements\
      \ \nFreddie Mac Flex Modification® \n\n \n \n \n \nPage 9203-41 \n \n(b) Requirements for a forbearance\
      \ plan \n \nServicers must use Resolve® to report forbearance plans to Freddie Mac. Servicers should\
      \ \nrefer to Resolve Online Help for details on the use of the Resolve to report forbearance \n\
      plans. \n \nNote: When forbearance plans are submitted via Resolve, the system will report the \n\
      associated EDR default action codes on behalf of the Servicer. \n \n(i) Borrower eligibility requirements\
      \ for a forbearance plan \n \nTo be eligible for a forbearance plan, the Borrower: \n \n■ Must have\
      \ an eligible hardship as described in Section 9202.1(b) and Form 710, \nMortgage Assistance Application.\
      \ The Borrower’s hardship may be verbally stated. \nThe Servicer must report the hardship reason\
      \ via EDR in accordance with Section \n9102.6. \n \n■ May be either current or delinquent, but the\
      \ forbearance plan must not result in an \noverall Mortgage Delinquency that exceeds 360 days (i.e.,\
      \ to be in an active \nforbearance plan, the Borrower must not have missed more than 12 contractual\
      \ \nmonthly Mortgage payments) \n \nNote: No Borrower documentation or written application (e.g.,\
      \ Form 710 or a Servicer’s \ncustomized equivalent of Form 710) is required from the Borrower; however,\
      \ the \nServicer must achieve quality right party contact in accordance with the requirements in\
      \ \nSection 9102.3(b). \n \n(ii) Mortgage eligibility and exclusions for a forbearance plan \n \n\
      Mortgages secured by the Borrower’s Primary Residence, even if vacant, are eligible for \nforbearance.\
      \ \n \nThe following Mortgages are ineligible for forbearance: \n \n■ Mortgages secured by abandoned\
      \ or condemned properties \n\n \n \n \n \nPage 9203-42 \n \n■ Mortgages secured by second homes\
      \ or Investment Properties \n \n(iii)Forbearance plan agreement with the Borrower \n \nThe Servicer\
      \ must determine the terms of the forbearance agreement based on \ndiscussions with the Borrower.\
      \ The forbearance agreement: \n \n■ Must be provided to the Borrower in writing and signed by the\
      \ Servicer. The \ndocument does not have to be signed by the Borrower or returned to the Servicer\
      \ as a \ncondition of the forbearance plan. \n \n■ Must indicate the duration of the forbearance\
      \ plan, including the effective date, the \nexpiration date of the forbearance plan and, if applicable,\
      \ the due date of the first \npayment and the amount of such payment. \n \nNote: See Section 9203.3(b)(iv)\
      \ for additional information about reduced payments \n(if applicable) under a forbearance plan.\
      \ \n \n■ Must state that, at the end of the forbearance period, the Borrower must either: \n \n\
      ❑ Cure the Delinquency through a full reinstatement, partial reinstatement plus \nrepayment plan\
      \ or a repayment plan, or payoff of the Mortgage, or \n \n❑ Submit a complete Borrower Response\
      \ package to be evaluated for a workout \noption prior to the conclusion of the plan \n \nNote:\
      \ Refer to Sections 9203.1(a) through 9203.2(d) for requirements on \nreinstatements and repayment\
      \ plans and to Chapters 9206 through 9210 for \nrequirements on workout options. \n \n■ Must state\
      \ that foreclosure proceedings are suspended during the forbearance period \nso long as the Borrower\
      \ complies with the forbearance agreement and that, unless \nprohibited by applicable law, the Servicer\
      \ may recommence foreclosure at the point it \nwas suspended if the Borrower defaults on the forbearance\
      \ plan \n \n■ May include a requirement to pay any accrued late charges due from the Borrower at\
      \ \nthe time the Servicer entered into the forbearance agreement with the Borrower. The \nServicer\
      \ must not accrue or collect late charges from the Borrower during the \nforbearance period, or\
      \ any subsequent repayment plan period, if the Borrower is \ncomplying with the terms of such agreements.\
      \ If the Borrower defaults on the terms \nof the forbearance agreement, late charge accrual may\
      \ recommence from the date the \nBorrower defaulted on the agreement. \n \n(iv) Reduced payments\
      \ under a forbearance plan \n \n\n \n \n \n \nPage 9203-43 \nIf a monthly payment is required under\
      \ the terms of a forbearance plan: \n \n■ Such payment must be less than the Borrower’s monthly\
      \ contractual Mortgage \npayment, including, as applicable, principal, interest and Escrow payments\
      \ \n \n■ The Servicer must receive such payment from the Borrower on or before the last day \nof\
      \ the month in which it is due. If the Borrower fails to make timely forbearance \npayments, the\
      \ forbearance plan must be canceled unless the Servicer determines that \nthere are mitigating circumstances\
      \ that caused the payment to be late. \n \nIf there are mitigating circumstances that prevents the\
      \ Borrower from making the \nrequired reduced payment, the Servicer may determine whether to amend\
      \ the \nforbearance plan to further reduce the required payment or allow the Borrower to make \n\
      no payments under a new forbearance plan agreement. \n \nIf the Borrower fails to make timely payments\
      \ and there are no mitigating \ncircumstances, the Servicer must: \n \n■ Evaluate the Borrower for\
      \ other alternatives to foreclosure (e.g., solicit the Borrower \nfor a complete Borrower Response\
      \ Package \n \n■ Conduct an evaluation for a streamlined offering of the Freddie Mac Flex \nModification)\
      \ and otherwise, pursue foreclosure in accordance with Chapter 9301. \n \n■ Use good business judgment\
      \ to determine whether forbearance payments were \nreceived timely or if mitigating circumstances\
      \ (such as a further reduction in income) \ncaused the payment to be late. Exceptions to the timely\
      \ payment requirement must be \ndocumented and retained in the Mortgage file. \n \n(c) Borrower\
      \ contact requirements when transitioning from a forbearance plan \n \n(i) Contact requirements\
      \ \n \nThe Servicer has discretion to determine the appropriate frequency to contact the \nBorrower.\
      \ However, the Servicer must initiate contact no later than 30 days prior to any \nforbearance plan\
      \ end date. Borrower contact must continue until quality right party \ncontact is achieved or until\
      \ the forbearance plan has expired. \n \nIf quality right party contact is achieved, the Servicer\
      \ must determine whether: \n \n■ The Borrower’s hardship has been resolved \n \n■ The Borrower intends\
      \ to remain in the Mortgaged Premises \n \n■ The Borrower must submit a complete Borrower Response\
      \ Package to be evaluated \nfor other workout or liquidation options; and \n\n \n \n \n \nPage 9203-44\
      \ \n \n■ The Borrower is eligible for a streamlined modification offer for a Freddie Mac Flex \n\
      Modification under Chapter 9206 \n \nThe Servicer may use alternative outreach methods to contact\
      \ the Borrower as permitted \nby applicable law, including, but not limited to, e-mail, text messaging,\
      \ voice response \nunit technology or a Servicer’s web portal. In addition, the Servicer is authorized\
      \ to mail, \nfax or electronically transmit the Borrower Solicitation Package or its equivalent\
      \ to the \n \n(ii) Post-forbearance plan – solicitations \n \nBorrower who was on a forbearance\
      \ completes the forbearance plan without a solution to \nthe Delinquency, the table below provides\
      \ requirements for Servicers to conduct reviews \nfor proactive Payment Deferral and Freddie Mac\
      \ Flex Modification offers. \n \nPost forbearance plan – Payment Deferral \nThe Borrower’s forbearance\
      \ plan ends \nand the Servicer is unable to establish \nPayment Deferral by the 15th day following\
      \ \nexpiration of the forbearance plan. \nForbearance Solicitation Cover Letter, with Exhibit 1100,\
      \ Payment Deferral \napplicable law. While use of Exhibits 1102 or 1100 is optional, it reflects\
      \ the minimum \n\n \n \n \n \nPage 9203-45 \nlevel of information that the Servicer must communicate\
      \ and illustrates a level of \nspecificity that complies with the requirements of the Guide. \n\
      solicitation and/ or during the processing month if, as of the date of evaluation: \n■ The Mortgage\
      \ is six months delinquent, or \ncumulative deferred past-due principal and interest payments resulting\
      \ from \nPayment Deferrals \nmonth of the solicitation or processing month after receipt of the\
      \ Borrower’s full \nmonthly contractual payment due during that month. While the current month’s\
      \ \npayment remains due because of delinquency and/or cumulative deferred payment \nrequirements,\
      \ the Servicer must send the proactive offer with the condition that a \npayment or payments are\
      \ required to be eligible to complete the Payment Deferral. \nOnce the payment or payments have\
      \ been received and the Mortgage becomes eligible, \nthe Servicer can proceed to settlement. \n\n\
      \ \n \n \n \nPage 9203-46 \nDeferral but did not accept the \nThe Servicer must evaluate the Borrower\
      \ for eligibility for a proactive offer for a Flex \nModification in accordance with the requirements\
      \ of Section 9206.1(c)(iii). \nevaluation of a Borrower Response Package evaluation notice, or its\
      \ equivalent. \nExhibits 1191 and 93 may be altered at the Servicer’s discretion as it deems necessary\
      \ \nto meet the requirements of this section and Chapter 9206 and to comply with \ndisclosure and\
      \ other requirements under applicable law. \n \n(d) Borrowers in a Trial Period Plan \n \nIf a Borrower\
      \ was in a Trial Period Plan prior to entering into a forbearance plan, the \nBorrower may be re-evaluated\
      \ for a new Trial Period Plan within 30 days prior to or upon \ncompletion of the forbearance plan.\
      \ The Servicer must not resume or restart the terms of the \nprevious Trial Period Plan prior to\
      \ the start of the forbearance plan. Instead, the Servicer \nmust evaluate the Borrower based on\
      \ the status of the Mortgage at the time of the new \nevaluation. If the Borrower meets all eligibility\
      \ requirements upon completion of the \nforbearance plan and accepts a new Trial Period Plan offer,\
      \ the Borrower will be required to \nstart a new Trial Period Plan. \n \nFor any subsequent modification\
      \ submissions, the Trial Period Plan prior to the start of the \nforbearance plan will not be considered\
      \ a failed Trial Period Plan for a Freddie Mac Flex \nModification evaluation. \n \n(e) Forbearance\
      \ plan termination \n \nThe forbearance plan must be terminated if: \n \n■ The Servicer determines\
      \ that the Borrower has failed to meet the terms specified in the \nforbearance plan agreement \n\
      \n \n \n \n \nPage 9203-47 \n \n■ Any of the eligibility criteria for the forbearance plan is no\
      \ longer satisfied \n \n■ The Servicer becomes aware that the Borrower’s hardship is resolved; or\
      \ \n \n■ The Borrower requests termination of the forbearance plan \n \n(f) Other forbearance plan\
      \ conditions and requirements \n \n(i) Reporting forbearance plans \n \nServicers must report forbearance\
      \ plans in Resolve, in accordance with criteria outlined \nin Resolve Online Help, no later than\
      \ the last day of the month in which a forbearance \nplan starts. \n \n(ii) Forbearance plans for\
      \ Mortgages subject to recourse \n \nFor Mortgages subject to recourse including but not limited\
      \ to indemnification, Servicers \nare strongly encouraged, but not required, to consider eligible\
      \ Borrowers for a \nforbearance plan. Entering into a forbearance agreement (whether approved by\
      \ \nFreddie Mac or the Servicer) does not waive, delete, alter or supersede any recourse or \nindemnification\
      \ requirements set forth in the Servicer’s Purchase Documents and any \nother documents containing\
      \ recourse or indemnification obligations, and such recourse or \nindemnification obligations will\
      \ remain in full force and effect. \n \n(iii) Credit reporting for Mortgages in a forbearance plan\
      \ \n \nServicers must continue to report a “full-file” status to the four major credit repositories\
      \ \nfor each Mortgage in a forbearance plan in accordance with the Fair Credit Reporting Act \n\
      and credit bureau standards as provided by the Consumer Data Industry Association. See \nExhibit\
      \ 51, Credit Repositories and Information to Report. \n \n(iv) Servicer policy and procedures for\
      \ forbearance plans \n \nThe Servicer must have written forbearance plan policies and procedures\
      \ describing how \n \n■ Determine the Borrower’s hardship \n \n■ Determine whether to require a\
      \ reduced payment and any payment amount; and \n \n■ Document the Servicer’s decision-making process,\
      \ including, but not limited to, its \napplication of discretion or business judgement \n \nThe\
      \ Servicer must consistently apply these policies and procedures. \n\n \n \n \n \nPage 9203-48 \n\
      9203.4: Payment Deferral eligibility, processing, \nconditions and requirements (12/17/25) \n \n\
      ■ What is a Payment Deferral? \n \n■ Servicer approval authority for Payment Deferral \n \n■ Eligibility\
      \ requirements for a Payment Deferral \n \n■ Eligibility exclusions for a Payment Deferral \n \n\
      ■ Determining the terms of a Payment Deferral \n \n■ Completing Payment Deferral \n \n■ Submission\
      \ of Payment Deferral terms and settlement \n \n■ Other payment deferral conditions and requirements\
      \ \n \n■ Disaster Payment Deferral \n \n■ Electronic Payment Deferral Agreements \n \n(a) What is\
      \ a Payment Deferral? \n \nA Payment Deferral is a relief option to assist a Borrower who is at\
      \ least 60 days but less \nthan or equal to 180 days delinquent to cure the Delinquency by deferring\
      \ the delinquent \nprincipal and interest amounts of the contractual monthly Mortgage payment(s)\
      \ and eligible \nadvances into a newly created or an existing non-interest bearing UPB. Those amounts\
      \ will \nbecome due and payable at the earlier of the Mortgage maturity date, payoff date or transfer\
      \ \nor sale of the Mortgaged Premises. All other terms of the existing Mortgage must remain \n \n\
      (b) Servicer approval authority for Payment Deferral \n \nThe Servicer must evaluate the Borrower\
      \ for a Payment Deferral under Sections 9203.4(a) \nthrough 9203.4(h) in accordance with the evaluation\
      \ hierarchy in Sections 9201.2 and \n9203.1(a). \n \nUnless otherwise notified by Freddie Mac, all\
      \ Servicers are delegated to approve and offer a \nPayment Deferral to eligible Borrowers in accordance\
      \ with the requirements of the Guide \nand other applicable Purchase Documents. \n \n\n \n \n \n\
      \ \nPage 9203-49 \n(c) Eligibility requirements for a Payment Deferral \n \nThe Servicer must establish\
      \ achieve quality right party contact with the Borrower in \naccordance with the requirements described\
      \ in Section 9102.3(b). \n \n(i) Borrower eligibility \n \nIn addition to the information required\
      \ to achieve quality right party contact, the Servicer \nmust confirm that the Borrower: \n \n■\
      \ Has a resolved hardship \n \n■ Has the financial capacity to continue making the existing contractual\
      \ monthly \nMortgage payment, including amounts due as a result of an Escrow shortage, if \n \n\
      ■ Is unable to afford a repayment plan or full reinstatement of the Mortgage \n \n(ii) Mortgage\
      \ and property eligibility \n \nThe Mortgage: \n \n■ Must be at least 60 days delinquent but less\
      \ than or equal to 180 days delinquent as of \nthe evaluation date for the Payment Deferral. \n\
      \ \nNote: Refer to Section 9203.4(g)(ii) for processing instructions when additional \npayments\
      \ may be required during the month of evaluation and/or processing month. \n \n■ Must have been\
      \ originated at least 12 months prior to the evaluation date for the \n \n■ Must be a conventional\
      \ First Lien Mortgage currently owned or guaranteed by \nFreddie Mac; and \n \n■ May be a fixed-rate\
      \ Mortgage, ARM or Step-Rate Mortgage \n \nThe property may be a Primary Residence, second home\
      \ or Investment Property and \nmay be vacant or condemned. \n \n(iii) Borrower documentation \n\
      \ \nThe Servicer is not required to collect a complete Borrower Response Package to \nevaluate the\
      \ Borrower for a Payment Deferral. \n \nIf the Borrower submits a complete Borrower Response Package,\
      \ the Servicer: \n \n\n \n \n \n \nPage 9203-50 \n■ Must evaluate the Borrower in accordance with\
      \ the requirements for reviewing and \nevaluating a complete Borrower Response Package as specified\
      \ in the Guide \n \n■ Is authorized to use an Evaluation Notice (refer to Exhibit 93, Evaluation\
      \ Notices) in \nresponse to a complete Borrower Response Package and must make the appropriate \n\
      changes to reflect the terms of the Payment Deferral. For those Payment Deferrals \noffered without\
      \ a complete Borrower Response Package, the Servicer is not required \nto use an Evaluation Notice\
      \ in addition to the Payment Deferral agreement but may \ndo so at their discretion. \n \n(iv) Mortgages\
      \ subject to indemnification agreement \n \nIf the Mortgage is subject to an indemnification agreement\
      \ and is otherwise eligible \nunder the Payment Deferral requirements in Sections 9203.4(a) through\
      \ 9203.4(h), the \nServicer has the discretion to approve the Payment Deferral provided the following\
      \ \n \n■ The Mortgage receiving the Payment Deferral retains its credit enhancement \n \n■ If the\
      \ Servicer is not the credit enhancement provider, the Servicer must first obtain in \nwriting any\
      \ required approval under the terms of the credit enhancement from the \nentity providing the enhancement\
      \ to enter into a Payment Deferral that complies with \nthe requirements of Sections 9203.4(a) through\
      \ 9203.4(h) \n \n■ The Servicer remits to Freddie Mac an annual payment for the amount of all Payment\
      \ \nDeferral-related costs (e.g., interest rate shortfall). The loss amount calculations for \n\
      the Payment Deferral will be determined by Freddie Mac in the same manner as the \ncalculations\
      \ for modification loss amounts. The Payment Deferral loss amounts due \nwill be calculated on a\
      \ monthly basis and billed on an annual basis for the life of the \nMortgage that is subject to\
      \ a Payment Deferral. \n \nIf the Mortgage is subject to a partial indemnification, each year the\
      \ Servicer will be \nbilled the appropriate percentage of the Payment Deferral loss amount that\
      \ \ncorresponds with the partial indemnification agreement. The Payment Deferral loss \namounts\
      \ will be determined by Freddie Mac in accordance with a process described \nin Bulletins 2021-14\
      \ and 2021-31. \n \nNote: The Servicer is not eligible for an incentive for completing a Payment\
      \ Deferral on \na Mortgage that is subject to an indemnification agreement. \n \n(v) Mortgage insurance\
      \ \n \nIf the Mortgage is subject to mortgage insurance and approval of the Payment Deferral is\
      \ \nnot covered by a delegation agreement, the Servicer must obtain delegation of authority \nfrom\
      \ the MI or seek approval from the MI to complete the Payment Deferral. \n \n\n \n \n \n \nPage\
      \ 9203-51 \n(vi) Texas Equity Section 50(a)(6) Mortgages \n \nIf the Borrower is eligible and qualifies\
      \ for a Payment Deferral, the Servicer must offer \nthe Payment Deferral to the Borrower. If the\
      \ Servicer receives Borrower notification \nclassifying the Payment Deferral as a loan modification\
      \ and claiming that the terms of the \nmodification agreement do not comply with the provisions\
      \ of Article XVI Section \n50(a)(6) of the Texas Constitution, the Servicer must notify Freddie\
      \ Mac within seven \nBusiness Days of receipt of such objection or complaint via Freddie Mac Servicing\
      \ Data \nCorrections and include the following: \n \n \n \n■ Transaction type (e.g., Texas Home\
      \ Equity modification) \n \n■ Accounting Cycle in which Freddie Mac settled the workout \n \n■ Servicer’s\
      \ analysis (e.g., Borrower complaint related to Section 50(a)(6) of the Texas \nConstitution) \n\
      \ \nUpon receipt of Freddie Mac’s instructions, the Servicer must comply with any required \nresponse\
      \ time frames to claims of defects and any other complaint in accordance with \nSection 8104.1(a)\
      \ and the Texas Constitution. \n \n(d) Eligibility exclusions for a Payment Deferral \n \nThe following\
      \ Mortgages and Borrowers are ineligible for a Payment Deferral: \n \n \n \n■ Mortgages that have\
      \ received a prior non-disaster related Payment Deferral with an \neffective date within 12 months\
      \ of the evaluation date \n \n■ Borrowers who, within the 12 months prior to the evaluation date\
      \ for a Payment Deferral, \nfailed a non-disaster related modification Trial Period Plan (e.g.,\
      \ Freddie Mac Flex \nModification Trial Period Plan and the terms of that Trial Period Plan were\
      \ determined in \naccordance with Section 9206.2(a)) \n \nNote: Converting from a modification Trial\
      \ Period Plan to a forbearance plan, regardless \nof whether subject to an Eligible Disaster or\
      \ not, is not considered to be a failed Trial \nPeriod Plan modification. \n \n\n \n \n \n \nPage\
      \ 9203-52 \n■ Mortgages previously modified under the Freddie Mac Flex Modification®, or other nondisaster\
      \ related modification, where the Modification Effective Date is within the \nprevious 12 months\
      \ of the evaluation date for a Payment Deferral \n \n■ Mortgages that are subject to an approved\
      \ short sale or deed-in-lieu of foreclosure \n \n■ Mortgages that are currently subject to an unexpired\
      \ offer to the Borrower for another \nMortgage modification or repayment plan \n \n■ Borrowers who\
      \ are currently performing under another modification Trial Period Plan or \n \n■ Mortgages for\
      \ which the Payment Deferral, if completed, would result in a cumulative \ntotal of more than 12\
      \ months of deferred principal and interest payments, including \namounts deferred as a result of\
      \ previous non-disaster related Payment Deferrals \n \n■ Mortgages with a maturity date that is\
      \ within 36 months of the evaluation date \n \n■ Mortgages with a projected payoff date based on\
      \ payments due under the existing \namortization schedule that is within 36 months of the evaluation\
      \ date. \n \nNote: If the Mortgage is within 36 months of its maturity date or projected payoff\
      \ date \nbut the Servicer determines based on the Borrower’s individual circumstances that the \n\
      Borrower should be considered for a Payment Deferral, the Servicer may transmit an \nexception request\
      \ to Freddie Mac. \n \n(e) Determining the terms of a Payment Deferral \n \n(i) Servicer requirements\
      \ for determining the terms of a Payment Deferral \n \nThe Servicer must follow the steps below\
      \ when determining the terms of the Payment \nDeferral. If the existing Mortgage includes a non-interest\
      \ bearing UPB as a result of a \nprior modification, the terms impacting that non-interest bearing\
      \ UPB will remain \n \nThe Servicer must apply the Payment Deferral forbearance in accordance with\
      \ the \nfollowing steps: \n \n1. Deferring delinquent amounts. Defer at least 2 months and up to\
      \ 6 months of pastdue principal and interest payment(s) and any other expenses or amounts that are\
      \ \npermitted to be capitalized under the Freddie Mac Flex Modification capitalization \nrules in\
      \ Section 9206.3(b)(ii) into an existing or newly created non-interest bearing \nUPB (i.e., deferred\
      \ UPB). The deferred UPB will become due on the earlier of: \n \n■ The Mortgage maturity date \n\
      \n \n \n \n \nPage 9203-53 \n \n■ The Mortgage payoff date (e.g., refinance or payoff of the interest-bearing\
      \ UPB); \n \n■ Upon transfer or sale of the Mortgaged Premises \n \n2. Reporting the Payment Deferral.\
      \ The Servicer must advance the DDLPI in order to \nbring the Mortgage to current status. \n \n\
      3. Remaining payment schedule. Ensure the remaining payment schedule associated \nwith the interest-bearing\
      \ UPB remains unchanged, from the Mortgage’s payment \nschedule before applying the Payment Deferral.\
      \ \n \n4. Late charges. The Servicer must waive all accrued and unpaid late charges upon \ncompletion\
      \ of the Payment Deferral. \n \n5. Remaining Mortgage terms. When offering the Payment Deferral,\
      \ the Servicer must \nensure all other remaining terms of the existing Mortgage remain unchanged\
      \ \nincluding, but not limited to the: \n \n■ Remaining amortization schedule \n \n■ Monthly P&I\
      \ portion of the existing contractual monthly Mortgage payment \n \n■ Interest rate (including maintaining\
      \ the existing rate adjustment schedule for an \nARM or a Step-Rate Mortgage) \n \n■ Maturity date;\
      \ and \n \n■ Due dates of the remaining payment due under the Mortgage \n \nThe maximum number of\
      \ cumulative Principal and Interest Payments that may be \ndeferred for a Mortgage subject to non-disaster\
      \ Payment Deferrals over the life of the \nMortgage is 12. \n \n(ii) Escrow \n \nPrior to or during\
      \ the Servicer’s determination of the Borrower’s eligibility for a Payment \nDeferral, the Servicer\
      \ must analyze the Borrower’s Escrow to estimate if there is an \nEscrow shortage. If the Servicer\
      \ completed an estimated analysis during evaluation, then \nupon completion of the Payment Deferral,\
      \ the Servicer must perform a new Escrow \nanalysis in accordance with the Real Estate Settlement\
      \ Procedures Act (RESPA) and any \napplicable federal, State or local laws. \n \nIf, as a result\
      \ of the analysis, the Servicer determines that there is an Escrow shortage, the \nServicer must\
      \ disclose the amount of the shortage to the Borrower before the Borrower \n\n \n \n \n \nPage 9203-54\
      \ \naccepts the Payment Deferral. If the Borrower is unable to pay the Escrow shortage as a \nlump\
      \ sum, then the Borrower must pay the shortage as part of the monthly principal, \ninterest, taxes\
      \ and insurance (PITI) payment. If the Borrower must make monthly Escrow \nshortage payments, then\
      \ the Servicer must: \n \nover a period of 60 months, unless the Borrower chooses to pay off the\
      \ shortage over \na shorter period of time, not to be less than 12 months \n \n \nIf the Borrower\
      \ is unable to afford a Payment Deferral based on the increased monthly \npayment resulting from\
      \ an Escrow shortage repayment, the Servicer must evaluate the \nBorrower for a Freddie Mac Flex\
      \ Modification. \n \nTo complete a Payment Deferral, the Servicer must perform an actual Escrow\
      \ analysis (as \nopposed to an estimate) in accordance with RESPA and any applicable federal, State\
      \ or \nlocal law upon completion of the Payment Deferral and, if applicable, establish a \nrepayment\
      \ plan in accordance with the above requirements. Any Escrow shortage that is \nidentified at the\
      \ time of the Payment Deferral must not be deferred to the non-interestbearing UPB, and the Servicer\
      \ is not required to fund any existing Escrow shortage. \n \nThe Servicer is not required to revoke\
      \ a previous waiver of Escrow, if applicable. \n \n(f) Completing Payment Deferral \n \nThe Servicer\
      \ must complete the Payment Deferral in the same month it determines the \nBorrower is eligible.\
      \ If the Servicer is unable to complete the Payment Deferral within the \nsame month of its determination,\
      \ the Servicer may, at its option and in accordance with the \n“processing month” requirements below,\
      \ use an additional month to allow for sufficient \nprocessing time (“processing month”) to complete\
      \ the Payment Deferral. \n \n(i) Processing month requirements \n \nIf the Servicer is unable to\
      \ complete (i.e., submit the case via Freddie Mac’s servicing \nsystem) the Payment Deferral before\
      \ the 15th day of the evaluation month, then the \nServicer is authorized to use an additional month\
      \ to allow for sufficient processing time \n(a “processing month”) to complete a Payment Deferral.\
      \ The Servicer must treat all \nBorrowers equally in applying the processing month, as evidenced\
      \ by a written policy \n(i.e., the criteria for requiring a processing month must be the same for\
      \ all Borrowers). \n \n\n \n \n \n \nPage 9203-55 \nAdditionally, the Servicer is not permitted\
      \ to defer more than 6 months of principal and \ninterest payments as part of a Payment Deferral\
      \ or to exceed 12 months of cumulative \ndeferred principal and interest payments from all Payment\
      \ Deferrals completed on the \nMortgage. As a result, the Borrower must make their full monthly\
      \ contractual payment \nduring the processing month if, as of the evaluation date: \n \n■ The Mortgage\
      \ is already 180 days delinquent, or \n \n■ The Payment Deferral would cause the Mortgage to exceed\
      \ 12 months of cumulative \ndeferred past-due Principal and Interest Payments \n \nWhile the current\
      \ month’s payment remains due because of delinquency and/or \ncumulative deferred payment requirements,\
      \ the Servicer must send the proactive offer \nwith the condition that a payment or payments are\
      \ required for the Borrower to become \neligible to complete the Payment Deferral. Once the payment\
      \ or payments have been \nreceived and the Mortgage becomes eligible, the Servicer can proceed to\
      \ settlement. \nOtherwise, the Borrower is not required to submit a payment during the processing\
      \ month \nfor a Payment Deferral. \n \n(ii) Payment Deferral agreement \n \nThe Servicer must send\
      \ Exhibit 1100, Payment Deferral Agreement, or equivalent to the \nBorrower no later than five days\
      \ after the completion (i.e., a settled workout option) of \nthe Payment Deferral. If the Servicer\
      \ elects to require the Borrower to sign and return the \nPayment Deferral agreement, it must receive\
      \ the fully executed Payment Deferral \nagreement prior to the settlement date. \n \nUse of Exhibit\
      \ 1100 is optional. It reflects the minimum level of information that the \nServicer must communicate\
      \ to the Borrower, and it illustrates a level of specificity that is \ndeemed to be in compliance\
      \ with the requirements of the Guide. The Servicer must \nensure the Payment Deferral agreement\
      \ complies with applicable federal, State or local \nlaws. \n \nWhen processing a Payment Deferral\
      \ agreement, the Servicer must also comply with the \n \n(iii) Maintaining lien status \n \nThe\
      \ Servicer’s application of a Payment Deferral to the Mortgage must not impair \nFreddie Mac’s First\
      \ Lien position or enforceability against the Borrower(s) in accordance \nwith its terms. \n \n\
      (iv) Title endorsement \n \nTitle endorsement is not required. \n \n\n \n \n \n \nPage 9203-56 \n\
      (v) Document Custodian \n \nAfter the Servicer has sent the executed Payment Deferral agreement\
      \ to the Borrower in \naccordance with the requirements in this section, the Servicer must comply\
      \ with the \n \n■ If the Payment Deferral agreement is not required to be signed by the Borrower,\
      \ the \nServicer must send a copy of the Servicer executed Payment Deferral agreement to \nthe Document\
      \ Custodian within 25 days of the effective date of the Payment Deferral \n \n■ If the Payment Deferral\
      \ agreement is to be recorded, the Servicer must: \n \n• Send a certified copy of the fully executed\
      \ Payment Deferral agreement to the \nDocument Custodian within 25 days of the effective date of\
      \ the Payment Deferral; \n \n• Send the original Payment Deferral agreement that is returned from\
      \ the recorder’s \noffice to the Document Custodian within five Business Days of receipt \n \n■\
      \ If the Payment Deferral agreement must be signed by the Borrower but not recorded, \nthe Servicer\
      \ must send the fully executed original Payment Deferral agreement to the \nDocument Custodian within\
      \ 25 days of the effective date of the Payment Deferral \n \n(g) Submission of Payment Deferral\
      \ terms and settlement \n \nPayment Deferrals can be processed and settled daily at Freddie Mac,\
      \ except on the first \nBusiness Day of the month. Servicers can monitor the settlement status of\
      \ all Payment \nDeferrals daily via the Modification Overview Report. \n \nServicers must use Resolve®\
      \ for all Mortgages for which the Borrowers are being evaluated \nfor a Payment Deferral under this\
      \ chapter. Resolve requires the submission of specific data \nelements in order to return a suggested\
      \ workout solution. Based on the information input by \nthe Servicer, Resolve will determine the\
      \ terms of the Payment Deferral. Servicers and any \nUsers that use or access Resolve are bound\
      \ by all of the provisions of the Master System \nLicense (see Section 2401.1) and the System-Specific\
      \ License for Servicing Tools (see \nSection 2404.2). Each Servicer shall use Resolve “in accordance\
      \ with (A) the requirements in \nthis section, (B) the Payment Deferral and other instructions provided\
      \ in Resolve Online \nHelp and any other Documentation, and (C) any other applicable provisions\
      \ of the Guide, \nincluding Sections 2401.1 and 2404.2. \n \n(i) Instant settlement via Resolve\
      \ \n \nTo process the Payment Deferral for immediate settlement, the requirements in \nSections\
      \ 9203.4(a) and 9203.4(h) must be met. \n \n\n \n \n \n \nPage 9203-57 \nTo complete the settlement\
      \ of the Payment Deferral, the Servicer must submit the \nsettlement request in Resolve. \n \n(ii)\
      \ Payment Deferrals not eligible for instant settlement via Resolve \n \nIf the settlement request\
      \ is submitted but the workout is not eligible for instant settlement, \nthe Servicer is expected\
      \ to follow the response provided by Resolve and correct any \nissues that were highlighted in Resolve’s\
      \ response and submit for settlement accordingly. \n \nAs an example, a Borrower is not immediately\
      \ eligible if, as of the evaluation date, \n \n■ The Mortgage is 180 days delinquent or greater,\
      \ or \n \n■ The Payment Deferral would cause the Mortgage to exceed 12 months of cumulative \ndeferred\
      \ past-due principal and interest payments resulting from Payment Deferrals \n \nIn these circumstances,\
      \ the Borrower may become eligible upon subsequent receipt of a \npayment or payments that are due.\
      \ In such instances, the Servicer can proceed to settling \nthe Payment Deferral once the Borrower\
      \ becomes eligible upon payment receipt. This \nmay occur as a result of proactive solicitations\
      \ required by Section 9203.3(c)(ii) or in \nother instances where a Borrower who is ineligible as\
      \ a result of the Mortgage \nDelinquency and/or the cumulative number of payments deferred subsequently\
      \ makes a \npayment or payments. \n \nBy transmitting the data to Freddie Mac via Resolve for settlement,\
      \ the Servicer \nrepresents and warrants that it has complied with all applicable requirements in\
      \ the Guide \nand applicable Purchase Documents governing: \n \n■ The Servicer’s delegated authority\
      \ to process a Mortgage subject to the terms of the \nPayment Deferral, and \n \n■ The Servicer’s\
      \ use of Resolve to complete the settlement \n \n(h) Other Payment Deferral conditions and requirements\
      \ \n \n(i) Delinquency status reporting \n \nThe Payment Deferral does not have an associated unique\
      \ EDR status code. For each \nMortgage subject to the Payment Deferral, the Servicer must continue\
      \ reporting the \nappropriate delinquency status information to Freddie Mac through the EDR Tool\
      \ in \naccordance with requirements in Section 9102.6 and Exhibit 88, Servicing Tools. After \n\
      the Payment Deferral has been completed and the Mortgage is brought current the EDR \nstatus code\
      \ must reflect the Mortgage as current. \n \n\n \n \n \n \nPage 9203-58 \nIf a Borrower redefaults\
      \ and enters a new forbearance plan, the Servicer must report the \nnew plan through the EDR tool\
      \ in accordance with the requirements described above. \n \n(ii) Request for reimbursement of expenses\
      \ \n \nServicers may use PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88) \nto\
      \ request reimbursement for the following fees associated with the Payment Deferral: \n \nReimbursement\
      \ expense codes and limits \nTitle costs, if applicable \nReimbursable amounts are in \naccordance\
      \ with the limits \nspecified in Exhibit \n57A,Approved Attorney, \nForeclosure, Mediation, \nPostponement\
      \ Fees and Title \nExpenses \n \nIf the Servicer submits a reimbursement request for Payment Deferral\
      \ expenses and the \nPayment Deferral settlement date does not exist in Freddie Mac’s systems, the\
      \ expense \nreimbursement request will not be eligible for payment, All Payment Deferrals must have\
      \ \nbeen submitted to Freddie Mac for settlement in its systems to be eligible for expense \nreimbursement.\
      \ \n \n(iii)Credit reporting \n \nFor each Mortgage that is subject to the Payment Deferral, the\
      \ Servicer must provide a \n“full file” status report describing the status of the Mortgage to each\
      \ of the four major \ncredit repositories in accordance with the credit bureau standards as provided\
      \ by the \nConsumer Data Industry Association. \n \n(iv) Incentive payment \n \nThe Servicer is\
      \ eligible to receive a $500 incentive payment for each completed Payment \n \n(v) Servicing fee\
      \ \n \nThe Servicer will continue to receive the Servicing fee it was receiving prior to \ncompleting\
      \ the Payment Deferral. \n\n \n \n \n \nPage 9203-59 \n \n(vi) Future Freddie Mac Flex Modification\
      \ evaluations \n \nIf the Servicer is evaluating a Borrower for a future Freddie Mac Flex Modification,\
      \ the \nPayment Deferral will not count as a previous loan modification for purposes of \ncalculating\
      \ the number of times the Mortgage has previously been modified. \n \n(vii) \nFailed Payment Deferral\
      \ – Freddie Mac Flex Modification solicitations \n \nFailed Payment Deferrals – Freddie Mac Flex\
      \ Modification solicitations \nThe Borrower has accepted a \nPayment Deferral and: \n■ Subsequently\
      \ becomes 60 \ndays delinquent within 6 \nmonths of the Payment \nDeferral effective date, and \n\
      ■ The Servicer is unable to \nestablish quality right party \ncontact \nproactive offer for a Freddie\
      \ Mac Flex Modification \nin accordance with the eligibility criteria described \nbelow. If eligible,\
      \ the Servicer must send the \nBorrower a proactive offer for a Freddie Mac Flex \nModification\
      \ by the 75th day of Delinquency. \n9206.1(c)(iii) except when the Mortgage is not required to be\
      \ 90 days or more \ndelinquent. \nModification Trial Period Plan Solicitation Offer – Not Based\
      \ on an Evaluation of a \nBorrower Response Package evaluation notice or its equivalent. Exhibits\
      \ 1191 and 93 \n \n(viii) Additional requirements for Mortgages with buydown funds \n \n\n \n \n\
      \ \n \nPage 9203-60 \n■ When processing a Payment Deferral for Mortgages subject to a temporary\
      \ subsidy \nin a buydown account to reduce the total amount to be deferred in accordance with \n\
      the requirements of a Payment Deferral as specified in Section 9203.4(e)(i) unless it \nis required\
      \ under the terms of the applicable buydown agreement \n \n■ When evaluating a Borrower with a Mortgage\
      \ with a temporary subsidy buydown \nplan for a Payment Deferral, the Servicer must confirm the\
      \ Borrower’s financial \ncapacity to continue making the existing contractual monthly Mortgage payment,\
      \ \nincluding amounts due as a result of an Escrow shortage, as specified in Section \n9203.4(c)(i)\
      \ \n \n■ Upon completion of the Payment Deferral, the Borrower must resume their payment \namount\
      \ as specified in the terms of the buydown agreement and in subject to \napplicable law* \n \n■\
      \ If the Buydown term has expired or if, for any reason, the buydown funds are not \nto make full\
      \ monthly Mortgage payments as required by the terms of the Mortgage \n \n \n*Application of each\
      \ monthly payment must continue to be applied in accordance with the \n \n(i) Disaster Payment Deferral\
      \ \n \nA Disaster Payment Deferral is a relief option to assist Borrowers who were impacted and\
      \ \nbecame delinquent due to an Eligible Disaster as defined in Section 8404.1. The Disaster \n\
      Payment Deferral is designed to cure the Delinquency by deferring the delinquent principal \nand\
      \ interest amounts of the contractual monthly Mortgage payment(s) into a newly created or \nan existing\
      \ non-interest bearing UPB. Those amounts will become due and payable at the \nearlier of the Mortgage\
      \ maturity date, payoff date or transfer or sale of the Mortgaged \nPremises. All other terms of\
      \ the existing Mortgage must remain unchanged. \n \nUnless otherwise notified by Freddie Mac, all\
      \ Freddie Mac Servicers are delegated to \napprove and offer a Freddie Mac Disaster Payment Deferral\
      \ to eligible Borrowers in \naccordance with the requirements of the Guide and other applicable\
      \ Purchase Documents. \n \n\n \n \n \n \nPage 9203-61 \n(i) Eligibility requirements and exclusions\
      \ \n \nThe Servicer must achieve quality right party contact with the Borrower in accordance \n\
      with the requirements described in Section 9102.3(b). \n \n(A) Borrower eligibility \n \nIn addition\
      \ to the information required to achieve quality right party contact, the \nServicer must confirm\
      \ that the Borrower: \n \n■ Has a resolved hardship \n \n■ Is capable of continuing to make the\
      \ existing contractual monthly Mortgage \n \n■ Is unable to afford a repayment plan or full reinstatement\
      \ of the Mortgage \n \n(B) Delinquency and payment requirements \n \nThe Mortgage must: \n \n■ Have\
      \ been current or less than 60 days delinquent (i.e., less than two months \ndelinquent) as of the\
      \ date of the Eligible Disaster, and \n \n■ Be at least 30 days delinquent (i.e., one month) but\
      \ less than or equal to 360 days \ndelinquent (i.e., 12 months) as of the date of evaluation. (Refer\
      \ to Section \n9203.4(g)(ii) for processing instructions when additional payments may be \nrequired\
      \ during the month of evaluation and/or processing month.) \n \nNote: If a Borrower’s hardship is\
      \ the result of an Eligible Disaster but the Mortgage \nwas 60 or more days delinquent as of the\
      \ date of the disaster and the Servicer \ndetermines the Borrower can maintain the existing monthly\
      \ contractual Mortgage \npayment, the Servicer must submit an exception request via Resolve to Freddie\
      \ Mac. \n \n(C) Mortgage and property eligibility \n \nThe Mortgage: \n \n■ Must be a conventional\
      \ First Lien Mortgage currently owned or guaranteed by \nFreddie Mac, and \n \n■ May be a fixed-rate\
      \ Mortgage, ARM or Step-Rate Mortgage \n \nThe property may be a Primary Residence, second home\
      \ or Investment Property and \nmay be vacant or condemned. \n \n\n \n \n \n \nPage 9203-62 \n(D)\
      \ Borrower documentation \n \nThe Servicer must not require a complete Borrower Response Package\
      \ to evaluate the \nBorrower for a Disaster Payment Deferral if the Borrower has been evaluated\
      \ in \naccordance with all requirements in the Guide and the eligibility requirements are \nsatisfied.\
      \ \n \n(E) Eligibility exclusions \n \nThe following Mortgages and Borrowers are ineligible for\
      \ the Disaster Payment \nDeferral: \n \n \n \n■ A Mortgage subject to a previous Disaster Payment\
      \ Deferral related to the same \nEligible Disaster event \n \n■ Mortgages subject to an approved\
      \ short sale or deed-in-lieu of foreclosure \n \n■ A Mortgage currently subject to an unexpired\
      \ offer to the Borrower for a \nmortgage modification or repayment plan \n \n■ Borrowers currently\
      \ performing under a modification Trial Period Plan or \n \n■ A Mortgage with a maturity date that\
      \ is within 36 months of the evaluation date \n \n■ A Mortgage with a projected payoff date based\
      \ on payments due under the \nexisting amortization schedule that is within 36 months of the evaluation\
      \ date \n \nNote: If the Mortgage is within 36 months of its maturity date or projected payoff \n\
      date but the Servicer determines based on the Borrower’s individual circumstances \nthat the Borrower\
      \ should be considered for a Disaster Payment Deferral, the Servicer \nmay transmit an exception\
      \ request to Freddie Mac. \n \n(F) Mortgages subject to indemnification agreements \n \nIf the Mortgage\
      \ is subject to an indemnification agreement and is otherwise eligible \nunder the Disaster Payment\
      \ Deferral requirements in this section, the Servicer has the \ndiscretion to approve the Disaster\
      \ Payment Deferral provided the following \n \n\n \n \n \n \nPage 9203-63 \n■ The Mortgage receiving\
      \ the Disaster Payment Deferral retains its credit \nenhancement \n \n■ If the Servicer is not the\
      \ credit enhancement provider, the Servicer first obtains in \nwriting any required approval under\
      \ the terms of the credit enhancement from the \nentity providing the enhancement \n \n■ The Servicer\
      \ remits to Freddie Mac an annual payment for the amount of all \nDisaster Payment Deferral-related\
      \ costs (e.g., interest rate shortfall). The loss \namount calculations for the Disaster Payment\
      \ Deferral will be determined by \nFreddie Mac in the same manner as the calculations for modification\
      \ loss \namounts. \n \nThe Disaster Payment Deferral loss amounts due will be calculated on a monthly\
      \ \nbasis and billed on an annual basis for the life of the Mortgage that is subject to a \nDisaster\
      \ Payment Deferral. \n \nIf the Mortgage is subject to a partial indemnification, each year, the\
      \ Servicer will \nbe billed the appropriate percentage of the Disaster Payment Deferral loss amount\
      \ \nthat corresponds with the partial indemnification agreement. The Disaster \nPayment Deferral\
      \ loss amounts will be determined by Freddie Mac in accordance \nwith the process described in Bulletins\
      \ 2016-5 and 2017-1. \n \nNote: The Servicer is not eligible for an incentive for completing a Disaster\
      \ Payment \nDeferral on a Mortgage that is subject to an indemnification agreement. \n \n(G) Mortgage\
      \ insurance \n \nIf the Mortgage is subject to mortgage insurance, and the MI is not included in\
      \ \nFreddie Mac’s list of delegated mortgage insurance companies found in Exhibit 10, \nFreddie\
      \ Mac-Approved Mortgage Insurers the Servicer must obtain delegation of \nauthority from the MI\
      \ or seek approval from the MI to complete the Disaster Payment \n \n(H) Texas Equity Section 50(a)(6)\
      \ Mortgages \n \nIf the Borrower is eligible and qualifies for a Disaster Payment Deferral, the\
      \ Servicer \nmust offer the Disaster Payment Deferral to the Borrower. If the Servicer receives\
      \ \nBorrower notification classifying the Disaster Payment Deferral as a loan \nmodification and\
      \ claiming that the terms of the modification agreement do not \ncomply with the provisions of Article\
      \ XVI Section 50(a)(6) of the Texas Constitution, \nthe Servicer must notify Freddie Mac within\
      \ seven Business Days of receipt of such \nobjection or complaint via Freddie Mac Servicing Data\
      \ Corrections and include the \n \n\n \n \n \n \nPage 9203-64 \n \n \n■ Transaction type (e.g.,\
      \ Texas Home Equity modification) \n \n■ Accounting Cycle in which Freddie Mac settled the workout\
      \ \n \n■ Servicer’s analysis (e.g., Borrower complaint related to Section 50(a)(6) of the \nTexas\
      \ Constitution) \n \nUpon receipt of Freddie Mac’s instructions, the Servicer must comply with any\
      \ \nrequired response time frames to claims of defects and any other complaint in \naccordance with\
      \ Section 8104.1(a) and the Texas Constitution. \n \n(ii) Determining Disaster Payment Deferral\
      \ terms \n \nBased on the information provided by the Servicer, Resolve will determine the terms\
      \ of \nthe Disaster Payment Deferral as described in this Section 9203.4(i)(ii). \n \nIf the existing\
      \ Mortgage includes a non-interest bearing UPB as a result of a prior \nmodification, the terms\
      \ impacting that non-interest bearing UPB will remain unchanged. \n \n \n■ Apply the Payment Deferral\
      \ forbearance as follows: \n \nDefer the delinquent principal and interest and any other expenses\
      \ or amounts that are \npermitted to be capitalized under the Freddie Mac Flex Modification capitalization\
      \ \nrules in Section 9206.3(b)(ii) into an existing or newly created non-interest bearing \nUPB\
      \ (i.e., deferred UPB). The deferred UPB will become due on the earlier of: \n \n❑ The Mortgage\
      \ maturity date \n \n❑ The Mortgage payoff date (e.g., refinance or payoff of the interest-bearing\
      \ UPB), \n \n❑ The transfer or sale of the Mortgaged Premises \n \n■ Advance the DDLPI to bring\
      \ the Mortgage to current status \n \n■ Ensure the remaining payment schedule associated with the\
      \ interest-bearing UPB \nremains unchanged from the Mortgage’s pre-Disaster Payment Deferral payment\
      \ \nschedule \n \n■ Waive all accrued and unpaid late charges upon completion of the Payment Deferral\
      \ \n \n\n \n \n \n \nPage 9203-65 \nWhen offering the Payment Deferral, the Servicer must ensure\
      \ all other remaining terms \nof the existing Mortgage remain unchanged, including, but not limited\
      \ to the: \n \n■ Remaining amortization schedule \n \n■ Monthly P&I portion of the existing contractual\
      \ monthly Mortgage payment \n \n■ Interest rate, including maintaining the existing rate adjustment\
      \ schedule for an ARM \nor a Step-Rate Mortgage \n \n■ Maturity date \n \n■ Due Dates of the remaining\
      \ payment due under the Mortgage \n \nNote: The maximum number of monthly payments that may be deferred\
      \ as part of a \nDisaster Payment Deferral is 12. \n \nPrior to or during the Servicer’s determination\
      \ of the Borrower’s eligibility for a Disaster \nPayment Deferral, the Servicer must analyze the\
      \ Borrower’s Escrow to estimate if there \nis an Escrow shortage. If the Servicer completed an estimated\
      \ analysis during evaluation, \nthen upon completion of the Disaster Payment Deferral, the Servicer\
      \ must perform a new \nEscrow analysis in accordance with the RESPA and any applicable federal,\
      \ State or local \n \nIf, as a result of the analysis, the Servicer determines that there is an\
      \ Escrow shortage, the \nServicer must disclose the amount of the shortage to the Borrower before\
      \ the Borrower \naccepts the Disaster Payment Deferral. If the Borrower is unable to pay the Escrow\
      \ \nshortage as a lump sum, then the Borrower must pay the shortage as part of the monthly \nPITI\
      \ payment. If the Borrower must make monthly Escrow shortage payments, then the \n \nover a period\
      \ of 60 months, unless the Borrower chooses to pay off the shortage over \na shorter period of time\
      \ (not to be less than 12 months) \n \n \nIf the Borrower is unable to afford a Disaster Payment\
      \ deferral based on the increased \nmonthly payment resulting from an Escrow shortage repayment,\
      \ the Servicer must \nevaluate the Borrower for a Freddie Mac Flex Modification. \n \n\n \n \n \n\
      \ \nPage 9203-66 \nAny Escrow account shortage that is identified at the time of the Payment Deferral\
      \ must \nnot be capitalized, and the Servicer is not required to fund any existing Escrow account\
      \ \nshortage. \n \nAny Escrow advances must be included in the deferred balance, as described in\
      \ the \n“Delinquent Disaster Payment Deferral” section above. \n \nIn addition, the Servicer is\
      \ not required to revoke any Escrow account waiver. \n \n(iii)Completing a Disaster Payment Deferral\
      \ \n \nThe Servicer must send a Payment Deferral agreement (Exhibit 1100 or the Servicer’s \ncustomized\
      \ equivalent of the Payment Deferral agreement) to the Borrower no later than \nfive days after\
      \ completion (e.g., a settled workout option) of the Payment Deferral. If the \nServicer elects\
      \ to require the Borrower to sign and return the Payment Deferral \nagreement, it must receive the\
      \ fully executed Payment Deferral agreement prior to the \nsettlement date. \n \nUse of the Payment\
      \ Deferral agreement is optional. It reflects the minimum level of \ninformation that the Servicer\
      \ must communicate to the Borrower, and it illustrates a level \nof specificity that is deemed to\
      \ be in compliance with the requirements of the Guide. The \nServicer must ensure the Payment Deferral\
      \ agreement complies with applicable federal, \n \nWhen processing a Payment Deferral agreement,\
      \ the Servicer must also comply with the \n \n(A) Maintaining lien status \n \nThe Servicer’s application\
      \ of a Disaster Payment Deferral to the Mortgage must not \nimpair Freddie Mac’s First Lien position\
      \ or enforceability against the Borrower(s) in \naccordance with its terms. \n \n(B) Title endorsement\
      \ \n \nTitle endorsement is not required. \n \n(C) Document Custodian \n \nAfter the Servicer has\
      \ sent the executed Payment Deferral agreement to the Borrower \nas required in this section: \n\
      \ \n■ If the Payment Deferral agreement is not required to be signed by the Borrower, \nthe Servicer\
      \ must send a copy of the Servicer-executed Payment Deferral \nagreement to the Document Custodian\
      \ within 25 days of the effective date of the \nPayment Deferral completion \n\n \n \n \n \nPage\
      \ 9203-67 \n \n■ If the Payment Deferral agreement is to be recorded, the Servicer must: \n \n•\
      \ Send a certified copy of the fully executed Payment Deferral agreement to the \nDocument Custodian\
      \ within 25 days of the effective date of the Payment \nDeferral, and \n \n• Send the original Payment\
      \ Deferral agreement that is returned from the \nrecorder’s office to the Document Custodian within\
      \ five Business Days of \n \n■ If the Payment Deferral agreement must be signed by the Borrower\
      \ but not \nrecorded, the Servicer must send the fully executed original Payment Deferral \nagreement\
      \ to the Document Custodian within 25 days of the effective date of the \nDisaster Payment Deferral\
      \ \n \n(iv) Processing month \n \nThe Servicer must complete the Disaster Payment Deferral in the\
      \ same month it \ndetermines the Borrower is eligible. If the Servicer is unable to complete the\
      \ Disaster \nPayment Deferral before the 15th day of the evaluation month, then the Servicer is\
      \ \nauthorized to use an additional month to allow for sufficient processing time (a \n“processing\
      \ month”) to complete the Disaster Payment Deferral. The Servicer must treat \nall Borrowers equally\
      \ in applying the processing month, as evidenced by a written policy \n(i.e., the criteria for requiring\
      \ a processing month must be the same for all Borrowers). \n \nThe Borrower must make a complete\
      \ monthly contractual payment during the processing \nmonth if, as of the date of evaluation, the\
      \ Mortgage is 360 days delinquent or more. In \nthis circumstance, the Servicer must complete the\
      \ Disaster Payment Deferral within the \nprocessing month after the receipt of the Borrower’s full\
      \ monthly contractual payment \ndue during that month. While the current month’s payment remains\
      \ due because of \ndelinquency and/or cumulative deferred payment requirements, the Servicer must\
      \ send \nthe proactive offer with the condition that a payment or payments are required to become\
      \ \neligible to complete the Payment Deferral. Once the payment or payments have been \nreceived\
      \ and the Mortgage becomes eligible, the Servicer can proceed to settlement. \n \n(v) Disaster Payment\
      \ Deferral agreement \n \nThe Servicer must process a Disaster Payment Deferral agreement in compliance\
      \ with the \nrequirements for processing a regular Payment Deferral agreement, as described in \n\
      Section 9203.4(f). \n \n(vi) Evaluation hierarchy \n \nTo be eligible for a Disaster Payment Deferral,\
      \ a Borrower must have been current or less \nthan 60 days delinquent (i.e., less than two months\
      \ delinquent) as of the date of the \n\n \n \n \n \nPage 9203-68 \nEligible Disaster. Otherwise,\
      \ the Servicer must conduct all loss mitigation evaluations in \naccordance with Freddie Mac’s standard\
      \ loss mitigation evaluation hierarchy, as \ndescribed in Section 9201.2, or must submit an exception\
      \ request for Freddie Mac \n \nIf quality right party contact is established with a Borrower who\
      \ was current or less than \n60 days delinquent (i.e., less than two months delinquent) as of the\
      \ date of the Eligible \nDisaster and the Borrower is unable to resolve the Delinquency through\
      \ a reinstatement \nor repayment plan, the Servicer must evaluate the Borrower for the loss mitigation\
      \ \noptions in the following Disaster evaluation hierarchy: \n \n \n2. Freddie Mac Flex Modification\
      \ \n \n \n \n \n(vii) Post-forbearance plan – solicitation for a Disaster Payment Deferral \n \n\
      Borrower who was on a disaster-related forbearance completes the forbearance plan \nwithout a solution\
      \ to the delinquency, the table below provides requirements for \nServicers to conduct reviews for\
      \ proactive Disaster Payment Deferral and Freddie Mac \nFlex Modification offers: \n \nPost forbearance\
      \ plan – Disaster Payment Deferral \nThe Borrower’s forbearance plan ends and \nthe Servicer is\
      \ unable to establish quality \nright party contact to evaluate for a postforbearance solution to\
      \ the delinquency. \nDeferral in accordance with the eligibility \ncriteria described below. If\
      \ eligible, the \nServicer must send the Borrower a proactive \noffer for a Disaster Payment Deferral\
      \ by the \n15th day following expiration of the \nforbearance plan. \n\n \n \n \n \nPage 9203-69\
      \ \nThe Borrower must be eligible for a Disaster Payment Deferral in accordance with the \nrequirements\
      \ of this chapter, except: \n■ The Servicer is not required to have established quality right party\
      \ contact, as described \nin Section 9203.4(i), and \neligibility requirements described in Section\
      \ 9203.4(i)(i) \nForbearance Solicitation Cover Letter, with Exhibit 1100, or its equivalent, making\
      \ any \nappropriate changes to comply with applicable law. While use of Exhibits 1102 or 1100 is\
      \ \noptional, it reflects the minimum level of information that the Servicer must communicate \n\
      and illustrates a level of specificity that complies with the requirements of the Guide. \nThe Servicer\
      \ must include instruction on how to accept the offer in the Payment Deferral \nagreement. The Servicer\
      \ is authorized to consider the following as acceptance by the \nBorrower, subject to applicable\
      \ law: \n■ Any other method evidencing the Borrower’s acceptance as determined by the Servicer \n\
      solicitation and/or processing month if, as of the date of evaluation, the Mortgage is 12 \nmonths\
      \ delinquent. In this circumstance, the Servicer must complete the Disaster Payment \nDeferral within\
      \ the month of solicitation after receipt of the Borrower’s full contractual \nBorrower must also\
      \ make his or her full monthly contractual payment(s) during the \nprocessing month if the Mortgage\
      \ is 360 days delinquent or more. \nThe Servicer must complete the Payment Deferral within the processing\
      \ month after \nreceipt of the Borrower’s full monthly contractual payment during that month. When\
      \ \nprocessing these evaluations using Resolve, the Borrower is ineligible for a Payment \nDeferral\
      \ until their payment is received. \nWhile the current month’s payment remains due because of delinquency\
      \ and/or cumulative \ndeferred payment requirements, the Servicer must send the proactive offer\
      \ with the \ncondition that a payment or payments are required to complete the Payment Deferral.\
      \ Once \nthe payment or payments have been received and the Mortgage becomes eligible, the \nServicer\
      \ can proceed to settlement. \n\n \n \n \n \nPage 9203-70 \n■ The Borrowers forbearance plan ends,\
      \ \ndelinquency, and \n■ The Borrower’s forbearance plan ends, \ndelinquency, and \nDeferral but\
      \ did not accept the offer by \nthe acceptance date provided in the \nPayment Deferral agreement\
      \ \n \nThe Servicer must evaluate the Borrower for eligibility for a proactive offer for a Freddie\
      \ \nThe Servicer must send the Borrower Exhibit 1191A, Freddie Mac Post-Disaster \nForbearance Flex\
      \ Modification Solicitation Cover Letter, and the Exhibit 93 template for \nthe Freddie Mac Flex\
      \ Modification Trial Period Plan Solicitation Offer – not based on an \n1191A and 93 may be altered\
      \ at the Servicer’s discretion as it deems necessary to meet the \n \n(viii) Failed repayment plan\
      \ - solicitation for a Disaster Payment Deferral \n \n\n \n \n \n \nPage 9203-71 \nand Freddie Mac\
      \ Flex Modification offers following an unsuccessful repayment plan. \n \ntotal monthly repayment\
      \ plan payment by \nthe end of the month in which it is due \n(“fails a repayment plan”) and the\
      \ \nDeferral, in accordance with the eligibility \ncriteria described below. If eligible, the \n\
      Servicer must send the Borrower a proactive \noffer for a Payment Deferral by the 15th day \nof\
      \ the following month (i.e., the 15th day of \nthe month following the month Borrower fails \na\
      \ repayment plan). \nThe Borrower must be eligible for a Payment Deferral in accordance with the\
      \ requirements \nof this chapter. However: \ndescribed in Section 9203.4(i), and \neligibility requirements\
      \ described in Section 9203.4(i)(i) \nRepayment Plan Solicitation Cover Letter, with Exhibit 1100\
      \ or its equivalent, making any \nappropriate changes to comply with applicable law. While use of\
      \ Exhibits 1105 and 1100 \nis optional, it reflects the minimum level of information that the Servicer\
      \ must \ncommunicate and illustrates a level of specificity that complies with the requirements\
      \ of \nThe Servicer must include instruction on how to accept the offer in the Payment Deferral\
      \ \nagreement. The Servicer is authorized to consider the following as acceptance by the \nBorrower,\
      \ subject to applicable law: \n\n \n \n \n \nPage 9203-72 \nsolicitation if, as of the date of evaluation,\
      \ the Mortgage is 12 months delinquent. In this \ncircumstance, the Servicer must complete the Disaster\
      \ Payment Deferral within the month \nof solicitation after receipt of the Borrower’s full contractual\
      \ payment due during that \nmonth. \nNote: If the Servicer uses a processing month to complete the\
      \ Disaster Payment Deferral, \nthe Borrower must also make his or her full monthly contractual payment(s)\
      \ during the \nprocessing month if the Mortgage is 360 days delinquent or more. The Servicer must\
      \ \ncomplete the Payment Deferral within the processing month after receipt of the Borrower’s \n\
      full monthly contractual payment during that month. In these instances, when processing \nthese\
      \ evaluations using Resolve, the Borrower is ineligible for a Payment Deferral until \ntheir payment\
      \ is received. While the current month’s payment remains due because of \ndelinquency and/or cumulative\
      \ deferred payment requirements, the Servicer must send the \nproactive offer with the condition\
      \ that a payment or payments are required to complete the \nPayment Deferral. Once the payment or\
      \ payments have been received and the Mortgage \nbecomes eligible, the Servicer can proceed to settlement.\
      \ \n■ The Borrower fails a repayment plan, \nproactive offer for a Disaster \nfollowing the month\
      \ Borrower fails a \nproactive offer for a Disaster \nPayment Deferral but did not \naccept the\
      \ offer by the acceptance \ndate provided in the Payment \nDeferral agreement \n\n \n \n \n \nPage\
      \ 9203-73 \nThe Servicer must evaluate the Borrower for eligibility for a proactive offer for a\
      \ Freddie \n1191 and 93 may be altered at the Servicer’s discretion as it deems necessary to meet\
      \ the \nrequirements of this section and Chapter 9206, and to comply with disclosure and other \n\
      \ \n(ix) Failed Disaster Payment Deferral – solicitations \n \nBorrower who accepted a Disaster\
      \ Payment Deferral and is unable to remain current, the \ntable below provides requirements for\
      \ Servicers to conduct reviews for proactive Freddie \nMac Flex Modification offers following an\
      \ unsuccessful Disaster Payment Deferral. \n \nFailed Payment Deferral – Freddie Mac Flex Modification\
      \ \nThe Borrower has accepted a Disaster \nPayment Deferral and: \n■ Subsequently becomes 60 days\
      \ \ndelinquent within 6 months of the \nPayment Deferral effective date, and \n■ The Servicer is\
      \ unable to establish \nModification by the 75th day of delinquency. \nThe Servicer must evaluate\
      \ the Borrower for eligibility for a proactive offer for a Freddie \n1191 or 93 may be altered at\
      \ the Servicer’s discretion as it deems necessary to meet the \n\n \n \n \n \nPage 9203-74 \nrequirements\
      \ of this section and Chapter 9206, and to comply with disclosure and other \n \n(x) Reduced Freddie\
      \ Mac Flex Modification requirements \n \nIn lieu of the Guide requirements for Freddie Mac Flex\
      \ Modification eligibility in \nSections 9206.1(c) and 9206.1(d), Mortgages will be excluded from\
      \ eligibility only under \nthe following circumstances: \n \n■ The Mortgage is an FHA, VA or Guaranteed\
      \ Rural Housing Mortgage \n \n■ The Mortgage is subject to recourse \n \n■ The Borrower is currently\
      \ performing under another forbearance plan, Trial Period \nPlan or repayment plan \n \n■ The Mortgage\
      \ is subject to an approved short sale or deed-in-lieu of foreclosure \n \n■ The Mortgage is currently\
      \ subject to an unexpired offer to the Borrower for another \nmodification or other foreclosure\
      \ prevention alternative, such as a forbearance plan or \n \nIf the Servicer was not collecting\
      \ Escrows on the existing Mortgage, the Borrower is not \nrequired to establish an Escrow account\
      \ as a condition of the modification unless \notherwise required by applicable law or the Servicer\
      \ confirms that the taxes and \ninsurance premiums have not been paid and are past due. \n \n(xi)\
      \ Resolve \n \nTo model the terms of the Disaster Payment Deferral and complete the settlement \n\
      process, Servicers must use the “Payment Deferral” path in Resolve. Additionally, each \nServicer\
      \ shall comply with the requirements in Section 9203.4(e) to complete the \nsubmission and settlement\
      \ process for a Disaster Payment Deferral. \n \n(xii) Reporting requirements \n \nIn most cases,\
      \ the Disaster Payment Deferral does not have an associated unique EDR \nstatus code. For each Mortgage\
      \ subject to the Disaster Payment Deferral, the Servicer \nmust continue reporting the appropriate\
      \ delinquency status through the Loan Level \nReporting tool in accordance with requirements in\
      \ Section 8303.3(g) and default \ninformation to Freddie Mac through EDR in accordance with requirements\
      \ in \nSection 9102.6. Once the Disaster Payment Deferral has been completed and the \nMortgage\
      \ is brought current, the Servicer must report the Mortgage as current through the \n \n\n \n \n\
      \ \n \nPage 9203-75 \nResolve automatically reports Status Code H6, Payment Deferral Offer, to EDR\
      \ on the \nthird Business Day of the following month in which the event occurred. Therefore, the\
      \ \nServicer is not required to report Status Code H6 in connection with a Payment Deferral. \n\
      However, the Servicer is not prohibited from reporting and may report Status Code H6, \nPayment\
      \ Deferral Offer, to notify Freddie Mac that the Mortgage is subject to an active \nDisaster Payment\
      \ Deferral offer in the following instances: \n \n■ The forbearance period ends prior to settlement\
      \ of an accepted Disaster Payment \nDeferral (e.g., the Servicer elected to use a processing month\
      \ and the forbearance plan \nexpires), or \n \n■ The Servicer has made a proactive offer following\
      \ the expiration of a forbearance \nplan in accordance with the “Solicitation for a Disaster Payment\
      \ Deferral” section \n \nIn these instances, if the Servicer has elected to report Status Code H6,\
      \ it should continue \nto report the code until the offer has expired or the Payment Deferral has\
      \ been completed. \n \n(xiii) Other requirements for the Disaster Payment Deferral \n \n(A) Delinquency\
      \ status reporting \n \nThe Disaster Payment Deferral does not have an associated unique EDR status\
      \ code. \nFor each Mortgage subject to the Disaster Payment Deferral, the Servicer must \ncontinue\
      \ reporting the appropriate delinquency status information to Freddie Mac \nthrough the EDR tool\
      \ in accordance with requirements in Section 9102.6 and Exhibit \n88. After the Disaster Payment\
      \ Deferral has been completed and the Mortgage is \nbrought current, the EDR status code must reflect\
      \ the Mortgage as current. \n \nIf a Borrower redefaults and enters a new forbearance plan, the\
      \ Servicer must report \nthe new plan through the EDR tool in accordance with the requirements described\
      \ \n \n(B) Request for reimbursement of expenses \n \nServicers may use PAID (Payments Automated\
      \ Intelligent and Dynamic) (see Exhibit \n88) to request reimbursement for the following fees associated\
      \ with the Disaster \nPayment Deferral: \n \nReimbursement expense codes and limits \n\n \n \n \n\
      \ \nPage 9203-76 \nTitle costs, if applicable \nReimbursable amounts are in \naccordance with the\
      \ limits \nspecified in Exhibit 57A \n \nIf the Servicer submits a reimbursement request for Disaster\
      \ Payment Deferral \nexpenses and the Disaster Payment Deferral settlement date does not exist in\
      \ \nFreddie Mac’s systems, the expense reimbursement request will not be eligible for \npayment.\
      \ All Disaster Payment Deferrals must have been submitted to Freddie Mac \nfor settlement in its\
      \ systems to be eligible for expense reimbursement. \n \n(C) Credit reporting \n \nFor each Mortgage\
      \ that is subject to the Disaster Payment Deferral, the Servicer must \nprovide a “full file” status\
      \ report describing the status of the Mortgage to each of the \nfour major credit repositories in\
      \ accordance with the credit bureau standards as \nprovided by the Consumer Data Industry Association.\
      \ \n \n(D) Incentive payment \n \nThe Servicer is eligible to receive a $500 incentive payment for\
      \ each completed \nDisaster Payment Deferral. \n \n(E) Servicing fee \n \nThe Servicer will continue\
      \ to receive the Servicing fee it was receiving prior to \ncompleting the Disaster Payment Deferral.\
      \ \n \n(F) Future Freddie Mac Flex Modification evaluations \n \nIf the Servicer is evaluating a\
      \ Borrower for a future Freddie Mac Flex Modification, \nthe Disaster Payment Deferral will not\
      \ count as a previous loan modification for \npurposes of calculating the number of times the Mortgage\
      \ has previously been \nmodified. \n \n(xiv) Future Payment Deferral evaluations \n \nIf the Servicer\
      \ is evaluating a Borrower for a future non-Disaster Payment Deferral in \naccordance with the requirements\
      \ of Sections 9203.4(b) through 9203.4(h), the Disaster \nPayment Deferral will not cause the Borrower\
      \ to be ineligible. \n \n(xv) Additional requirements for Mortgages with buydown funds \n \n\n \n\
      \ \n \n \nPage 9203-77 \n■ When processing a Disaster Payment Deferral for Mortgages subject to\
      \ a temporary \nsubsidy buydown plan in accordance with Section 4204.3, the Servicer must not \n\
      apply funds in a buydown account to reduce the total amount to be deferred in \naccordance with\
      \ the requirements of a Disaster Payment Deferral as specified in \nSection 9203.4(i)(i) unless\
      \ it is required under the terms of the applicable buydown \n \n■ When evaluating a Borrower with\
      \ a Mortgage with a temporary subsidy buydown \nplan for a Payment Deferral, the Servicer must confirm\
      \ the Borrower’s financial \ncapacity to continue making the existing contractual monthly Mortgage\
      \ payment, \nincluding amounts due as a result of an Escrow shortage, as specified in Section \n\
      9203.4(i)(i) \n \n■ Upon completion of the Disaster Payment Deferral, the Borrower must resume their\
      \ \npayment amount as specified in the terms of the buydown agreement, subject to \napplicable law\
      \ and the terms of the buydown agreement* \n \n■ If the Buydown term has expired or if, for any\
      \ reason, the buydown funds are not \n \n \n \n(j) Electronic Payment Deferral Agreements \n \n\n\
      \ \n \n \n \nPage 9203-78 \n(i) Definitions \n \nThe following defined terms are used throughout\
      \ this subsection: \n \nDefined terms related to Electronic Payment Deferral Agreements \nRelating\
      \ to technology having electrical, digital, magnetic, \nwireless, optical, electromagnetic, or similar\
      \ capabilities, as \ndefined in the “UETA” and/or “E-SIGN”. \nA “Record” created, generated, sent,\
      \ communicated, received, \nor stored by “Electronic” means, as defined in the “UETA” \nand/or “E-SIGN.”\
      \ The term also includes a paper document \nconverted into an Electronic Record. \nElectronic Payment\
      \ \nAn agreement that is an Electronic Record that complies with \nthe applicable Payment Deferral\
      \ requirements of the Guide, as \nset forth in and subject to Chapter 9203. \nAn Electronic Record\
      \ that would be a promissory note if it was \nissued in paper, and that the Borrower has agreed\
      \ to issue it as \na Transferable Record. \neVault \nAn Electronic storage system that uses computer\
      \ hardware and \nsoftware to store and maintain eNotes and other Electronic \nRecords. \nMERS eDelivery\
      \ \nA MERS® system (operated by MERSCORP Holdings, Inc.) \nthat is used by MERS eRegistry members\
      \ to deliver \ndocuments and data from one MERS eRegistry member to \nanother using the same infrastructure,\
      \ open system-to-system \ninterface, and standards of the MERS eRegistry. \n \nNote: Refer to Section\
      \ 1401.3(h) for the meaning of loss mitigation documents \n \n(ii) Electronic Payment Deferral documents\
      \ \n \nIn lieu of paper documents, a Servicer may prepare, sign and send Payment Deferral \ndocuments\
      \ to the Borrower for the Borrower’s Electronic signature and Electronic \nreturn to the Servicer,\
      \ provided these transactions comply with the Guide, including \nthe requirements in Section 1401.3(h)\
      \ and Section 9206.4(d). \n \n\n \n \n \n \nPage 9203-79 \nAll Electronic loss mitigation documents,\
      \ including Payment Deferral documents \nand any other Electronic Mortgage file documents, are considered\
      \ Electronic \nRecords and must be able to be retrieved and printed in a manner that accurately\
      \ \nreflects the information they originally contained. Additionally, all Electronic \nRecords must\
      \ be accessible, either electronically or on paper, and made available to \n \nFreddie Mac will\
      \ not reimburse any costs resulting from a Servicer’s decision to use \nan Electronic Payment Deferral\
      \ Agreement, and the Borrower may not be charged \nfor any associated costs. \n \n(iii)General requirements\
      \ for all Electronic Payment Deferral Agreements \n \n \n■ Process, modify and store Electronic\
      \ Payment Deferral Agreements for Freddie Mac \nMortgages under requirements that are no less stringent\
      \ than applicable industry \nstandards when electronically processing, modifying and storing its\
      \ own Electronic \nPayment Deferral Agreements for Mortgages that it owns or services for others\
      \ \n \n■ Consult with their legal counsel to ensure that the use, processing and storage of an \n\
      Electronic Payment Deferral Agreement complies with all applicable federal, State \nand local laws\
      \ \n \n■ Provide for Electronic notarization when applicable and required, subject to \napplicable\
      \ law and the requirements set forth in Section 1401.3(f) \n \n■ Comply with all requirements in\
      \ the Servicing Contract to service the Mortgage, as \nmodified by an Electronic Payment Deferral\
      \ Agreement, including, but not limited to, \nServicing obligations related to a payoff or short\
      \ sale (e.g., cancelation of the \nMortgage, Note and Electronic Payment Deferral Agreement), grant\
      \ of a deed-in-lieu \nof foreclosure, foreclosure, repurchase of an electronically modified Mortgage\
      \ and \n \n■ Ensure that the signing platform has a robust audit trail of all key events starting\
      \ from \nthe creation of the Electronic Payment Deferral Agreement through and including \nServicer\
      \ and Borrower execution (as applicable) so that the Servicer can reproduce \nupon request \n \n\
      If the Servicer must have the Payment Deferral agreement recorded or in recordable \nformat to comply\
      \ with Section 9203.4(f)(i), the Servicer may use an Electronic Payment \nDeferral Agreement, provided\
      \ the Servicer is able to comply with the recording \njurisdiction’s recordation, Electronic format\
      \ requirements and the requirements set forth \nin Section 1401.3(e). \n \n\n \n \n \n \nPage 9203-80\
      \ \n(iv) Document custodial requirements for paper Notes \n \nDocument custodial requirements for\
      \ managing paper Notes \nIf the note is not Electronic \nBorrower signature is not \nWithin 25 days\
      \ of the effective date of the \nPayment Deferral, the Servicer must send an \nElectronic copy of\
      \ the Servicer executed \nElectronic Payment Deferral Agreement to the \nDocument Custodian to be\
      \ maintained or \nlogically associated with the Note. \nBorrower signature is \nrequired and recordation\
      \ \nis not required \nWithin 25 days of the effective date of the \nPayment Deferral, the Servicer\
      \ must send an \nElectronic copy of the fully executed Electronic \nPayment Deferral Agreement to\
      \ the Document \nCustodian to be maintained or logically \nassociated with the Note. \nRecordation\
      \ is required \n \n■ Within 25 days of the effective date of the \nPayment Deferral, the Servicer\
      \ must deliver \nan Electronic copy of the fully executed \nElectronic Payment Deferral Agreement\
      \ to \nthe Document Custodian to be maintained \nor logically associated with the Note, and \n■\
      \ The Servicer must also deliver the recorded \nElectronic Payment Deferral Agreement \nanother\
      \ form of recorder’s office \nconfirmation with recording information \ntherein (Recording Confirmation)\
      \ to the \nDocument Custodian within five Business \nDays of receipt from the recorder’s office.\
      \ \nRecordation is required \n■ Within 25 days of the effective date of the \nPayment Deferral,\
      \ the Servicer must deliver \nan Electronic copy of the fully executed \nElectronic Payment Deferral\
      \ Agreement to \nthe Document Custodian to be maintained \nor logically associated with the Note,\
      \ and \n\n \n \n \n \nPage 9203-81 \nDocument custodial requirements for managing paper Notes \n\
      If the note is not Electronic \n■ The Servicer must also deliver the \nelectronically recorded Electronic\
      \ Payment \nDeferral Agreement with recording \nConfirmation to the Document Custodian \nwithin\
      \ five Business Days of receipt from \nthe recorder’s office. \n \nIf the Document Custodian is\
      \ not able to accept Electronic documents, the Servicer must \ndeliver a paper copy of the Electronic\
      \ Payment Deferral Agreement to the Document \n \nNote: Refer to Section 1402.5(c) for delivery\
      \ requirements of Electronic Payment \nDeferral Agreements related to eMortgages. \n \n(v) Storage\
      \ and safekeeping of Electronic Payment Deferral Agreement \n \nServicers must store Electronic\
      \ Payment Deferral Agreements in an eVault or similar \neStorage System (as defined in Section 1402.1(b))\
      \ and must store copies of \nElectronic Payment Deferral Agreements (including printed paper copies\
      \ of \nfacsimiles thereof) in the Mortgage file in accordance with the Guide requirements \nfor\
      \ storing Mortgage file documents. Electronic Payment Deferral Agreement must \nbe logically associated\
      \ with the paper Mortgage file so that all Servicing records \n(both paper and Electronic) that\
      \ constitute the Mortgage file are identified and \nassociated with the Mortgage transaction. \n\
      \ \n(vi) Transfers of Servicing \n \nUpon a Transfer of Servicing involving Mortgages with an Electronic\
      \ Payment Deferral \nAgreement, the Transferor Servicer must comply with Section 7101.1(b)(ii)(B)\
      \ and \ninform the Transferee Servicer of the name of the eVault or eStorage System holding the\
      \ \nElectronic Payment Deferral Agreement. \n \nThe Transferor Servicer must ensure that its eVault\
      \ or eStorage System provider transfers \nthe Electronic Payment Deferral Agreement and all related\
      \ data to the Transferee \nServicer’s eVault or eStorage System provider in a manner that ensures\
      \ the ongoing \nvalidity and enforceability of the Electronic Payment Deferral Agreement and its\
      \ \nassociated Electronic Signature (as defined in Section 1401.1(b)). \n \nA Transferor Servicer\
      \ may not satisfy its obligations under this section by relying on \nSection 7101.5(a) by generating\
      \ paper copies of the payment deferral agreement for the \n\n \n \n \n \nPage 9203-82 \n \n(vii)\
      \ Disaster recovery/business continuity plan \n \nRefer to Section 1302.3 for Seller/Servicer business\
      \ continuity planning \n\n \nPage 9204-1 \nChapter 9204: Freddie Mac Workout Options \n9204.1: Freddie\
      \ Mac workout options and Servicer \nresponsibilities (11/19/25) \n \n■ Freddie Mac workout options\
      \ \n \n■ Servicer approval authority for workouts \n \n■ Freddie Mac’s rights related to workout\
      \ options \n \n(a) Freddie Mac workout options \n \nServicers must evaluate Borrowers in accordance\
      \ with the Freddie Mac loss mitigation \nevaluation hierarchy set forth in Section 9201.2. The evaluation\
      \ hierarchy states the order in \nwhich a Servicer is to evaluate a Borrower for Freddie Mac’s available\
      \ workout options \nwhich include Mortgage modifications, workout Mortgage assumptions, short sales,\
      \ deedsin-lieu of foreclosure and charge-offs. \n \nIf a Borrower’s situation does not meet all\
      \ the requirements for a particular workout option \nbut the Servicer believes that the workout\
      \ option is still the best solution to the Delinquency, \nthen the Servicer may submit a recommendation\
      \ and rationale for the recommendation to \nFreddie Mac for review, in accordance with the submission\
      \ procedures in this chapter. \n \n(b) Servicer approval authority for workouts \n \nFreddie Mac\
      \ Servicers are delegated to approve the following: \n \n■ A Freddie Mac Flex Modification®, which\
      \ is a modification that meets the requirements \nof Sections 9206.1(b) through 9206.4(c) in accordance\
      \ with the requirements of the \nGuide or other Purchase Documents. \n \nNote: Refer to Sections\
      \ 1301.2(h) and 9206.1(c) for additional information about \ndelegated authority and adverse action\
      \ notice requirements. \n \n■ A Freddie Mac Standard Short Sale (“short sale”), including the Streamlined\
      \ Short Sale, \nthat meets the requirements of Sections 9208.1(a) through 9208.3(a). All other short\
      \ sales \nmust be submitted to Freddie Mac for review and approval. \n \n■ A Freddie Mac Standard\
      \ Deed-in-Lieu of Foreclosure (“deed-in-lieu of foreclosure”), \nincluding the Streamlined Deed-in-Lieu\
      \ of Foreclosure, that meets the requirements of \n\n \nPage 9204-2 \nSections 9209.1 through 9209.6.\
      \ All other deeds-in-lieu of foreclosure must be submitted \nto Freddie Mac for review and approval.\
      \ \n \nFor all other workouts in the Guide, the Servicer must submit its recommendation for a \n\
      workout to Freddie Mac (see Directory 5) for review. Additionally, if the Mortgage is an \nFHA,\
      \ VA or RHS Mortgage, the Servicer must obtain approval from the FHA, RHS, or VA, \nif applicable.\
      \ The Servicer must also obtain any necessary approvals from the MI for any \nworkout on a Mortgage\
      \ with mortgage insurance. \n \n(c) Freddie Mac’s rights related to workout options \n \nFreddie\
      \ Mac’s approval or settlement of a workout does not limit its right to review the \nMortgage file\
      \ and invoke its remedies under the Guide. If Freddie Mac’s review of the \nMortgage file discloses\
      \ any failure to comply with the Guide or any other Purchase \nDocuments, Freddie Mac has the right\
      \ to require the Servicer to: \n \n1. Compensate Freddie Mac and hold it harmless for any loss,\
      \ damage or expense \n(including court costs, attorney fees and incentive payments) that Freddie\
      \ Mac sustains \n \n2. Repurchase Freddie Mac’s interest in the Mortgage at any time under any of\
      \ the \ncircumstances outlined in Sections 3602.2(a) and 3602.2(b) \n9204.2: Processing and documentation\
      \ for workout \nrecommendations (10/08/25) \n \n■ Steps for processing a workout recommendation\
      \ \n \n■ Borrower documentation for workout options \n \n(a) Steps for processing a workout recommendation\
      \ \n \n(i) Steps for completing a workout \n \nThe following are the required steps for completing\
      \ a workout: \n \n1. The Servicer must collect and analyze the required documentation and information\
      \ in \naccordance with this chapter and Chapter 9202 \n \n2. If the Servicer does not have delegated\
      \ authority to approve the workout, the Servicer \nmust submit the required documentation and its\
      \ recommendation to Freddie Mac for \nreview through Resolve®. Freddie Mac will review the documentation\
      \ and the \n\n \nPage 9204-3 \nServicer’s recommendation and advise the Servicer of its decision.\
      \ The Servicer must \nensure that all approval conditions are met. \n \n3. If the Servicer does\
      \ have delegated authority to approve the workout, the Servicer \nmust evaluate the Borrower and\
      \ process the workout in accordance with the Guide \nand other Purchase Documents \n \n4. The Servicer\
      \ must perform all activities required for closing a workout within Freddie \nMac’s required time\
      \ frames \n \nClosing a workout is the process to complete a workout transaction. Closing includes\
      \ a \nsettlement transaction (if applicable), recording any required documents with the \nappropriate\
      \ government jurisdiction, timely and accurately reporting the transaction to \nFreddie Mac, remitting\
      \ all funds collected as part of the workout to Freddie Mac and \nensuring that Freddie Mac receives\
      \ the Servicer’s request for reimbursement of any \nallowable expenses within 30 days of the settlement\
      \ date. \n \nIn addition to the steps described above, the Servicer must comply with the following\
      \ \nrequirements when submitting a workout solution via Resolve for settlement, regardless \nof\
      \ whether the workout was approved under the Servicer’s delegated authority or \napproved by Freddie\
      \ Mac through the exception process. \n \n(b) Borrower documentation for workout options \n \nGenerally,\
      \ all Borrowers must submit a complete Borrower Response Package in order to be \nconsidered for\
      \ a workout option under this chapter unless otherwise specified. Section 9102.5 \ndescribes the\
      \ contents of a Borrower Response Package. \n9204.3: Servicer compensation, fees and mortgage \n\
      insurance considerations (04/27/26) \nthe new requirements prior to the mandatory October 1, 2026\
      \ version of this section if they \n \n \n■ Servicer compensation for alternatives to foreclosure\
      \ \n \n■ Prohibition of certain Borrower fees; non-refusal of workout options due to late charges\
      \ \n \n■ Mortgage insurance claims \n \n\n \nPage 9204-4 \n(a) Servicer compensation for alternatives\
      \ to foreclosure \n \nServicers are eligible to receive compensation for completing certain alternatives\
      \ to \nforeclosure. These amounts are incentives and are not considered to be base Servicing \n\
      compensation. Freddie Mac may change these incentive payments at any time. \n \n(i) Compensation\
      \ for settled workouts and successful repayment plans \n \nFor eligible settled workouts and successful\
      \ repayment plans, the Servicer will be \ncompensated as specified in the table below: \n \nCompensation\
      \ for eligible settled workouts and successful repayment plans \nWorkout/ Relief \nIncentive amount\
      \ \nComments \nRepayment plan \nTo qualify for the repayment plan \nincentive, the following conditions\
      \ must \n1. The Mortgage was 60 or more days \ndelinquent at the time the Borrower \nentered into\
      \ the repayment plan \n2. The Borrower completely reinstated \nor paid off the Mortgage \n3. The\
      \ Servicer reported the repayment \nplan to Freddie Mac via EDR as \n(all types) \nModification®\
      \ \nServicer incentives are capped at a total of $1,000 per Mortgage for all repayment plans, \n\
      Payment Deferrals and Freddie Mac Flex Modifications. Workout and relief options \ncompleted or\
      \ begun prior to July 1, 2020 are not subject to the incentive cap. \nStandard Short Sale \n$2,200\
      \ \n\n \nPage 9204-5 \nand Make-Whole \nPreforeclosure Sales \nStandard Deed-in-\n(“DIL”) \n$1,500\
      \ \n \nServicers should direct questions regarding the status of workout incentives to \nNPL_Invoices@FreddieMac.com.\
      \ \n \nThe Servicer is not eligible to receive compensation if: \n \n■ The Mortgage was sold to\
      \ Freddie Mac with recourse \n \n■ The Mortgage is insured by the FHA \n \n■ The Mortgage is guaranteed\
      \ by the VA or RHS \n \n■ The Mortgage is subject to indemnification \n \n(ii) Paying compensation\
      \ \n \nServicers must elect to receive these funds via the Automated Clearing House (ACH) by \n\
      following the steps outlined in Form 1132, Authorization for Automatic Transfer of \nFunds Through\
      \ the Automated Clearing House (ACH) For Sellers/Servicers. (See Section \n2405.1(a) for delivery\
      \ instructions for Form 1132.) \n \nFreddie Mac will track all workouts a Servicer settles on a\
      \ daily basis. Freddie Mac will \nalso send the loan detail for all of the eligible workouts the\
      \ Servicer settled and \nsuccessful repayment plans that occurred during the period for which the\
      \ Servicer is \nbeing compensated. Freddie Mac considers a workout settled when Freddie Mac has\
      \ \nreceived and successfully processed the documentation and received the remittance and \ntransmission(s)\
      \ specified in the table below. \n \n\n \nPage 9204-6 \nloan modification settlement \ndata or Payment\
      \ Deferral \nsettlement data in Resolve® \n \n \nMortgage paid in full-prepaid. \n(Note: Servicers\
      \ should remit \nonly the net proceeds due to \nFreddie Mac for a short sale \npayoff.) \n \n \n\
      \ \nshort sale settlement data in \nResolve \n \n \n \nThe original negotiated \npromissory note(s),\
      \ if applicable \n \n \nBorrower cash contribution, if \n \n \nForeclosure sale/DIL to report \n\
      the acquisition of the property \nand loan-level transaction to \nreport Mortgage as a transfer\
      \ to \n \n \n \n \nFreddie Mac will determine if a Servicer is entitled to compensation for a successful\
      \ \nrepayment plan of a Mortgage that was 60 or more days delinquent based on the \ninformation\
      \ the Servicer transmits to Freddie Mac via EDR and the Servicer’s monthly \nloan-level reporting.\
      \ \n \nThe Servicer must have: \n \n\n \nPage 9204-7 \n1. Informed Freddie Mac that the Borrower\
      \ has entered into a repayment plan (default \naction code 12) \n \n2. Notified Freddie Mac that\
      \ the Mortgage is current or is paid in full \n \n(b) Prohibition of certain Borrower fees; non-refusal\
      \ of workout options due to late charges \n \nThe Servicer may not charge any additional fees to\
      \ the Borrower other than those provided \nfor in Freddie Mac’s relief and workout options. The\
      \ Servicer may not refuse to consider a \nworkout option or require payment of accrued late charges\
      \ as a condition of doing a workout. \n \n(c) Mortgage insurance claims \n \nFreddie Mac will file\
      \ a claim for loss with the MI if the Mortgage is covered by mortgage \ninsurance, and Freddie Mac\
      \ will manage the claims payment process with the MI. The \nServicer must provide all information\
      \ and documentation pertaining to the claim to the MI no \nlater than 60 days after the foreclosure\
      \ sale, short sale or acceptance of a deed-in-lieu of \nforeclosure, or within any shorter time\
      \ frame as specified by the mortgage insurance master \n \nIf the MI reduces, suspends or denies\
      \ the claim due to the Servicer’s actions or inactions, \nincluding, but not limited to, failure\
      \ to comply with the Guide or applicable mortgage \ninsurance requirements, then Freddie Mac may\
      \ exercise its remedies provided by the Guide \nand the other Purchase Documents for the amount\
      \ that is reduced, suspended or denied. Refer \nto Chapter 3602 regarding repurchases, repurchase\
      \ alternatives and other remedies. \n9204.3: Servicer compensation, fees and mortgage \ninsurance\
      \ considerations (Future effective date \n10/01/26) \n \n■ Servicer compensation for alternatives\
      \ to foreclosure \n \n■ Prohibition of certain Borrower fees; non-refusal of workout options due\
      \ to late charges \n \n■ Mortgage insurance claims \n \n(a) Servicer compensation for alternatives\
      \ to foreclosure \n \nServicers are eligible to receive compensation for completing certain alternatives\
      \ to \nforeclosure. These amounts are incentives and are not considered to be base Servicing \n\
      compensation. Freddie Mac may change these incentive payments at any time. \n \n\n \nPage 9204-8\
      \ \n(i) Compensation for settled workouts and successful repayment plans \n \nFor eligible settled\
      \ workouts and successful repayment plans, the Servicer will be \ncompensated as specified in the\
      \ table below: \n \nCompensation for eligible settled workouts and successful repayment plans \n\
      Workout/ Relief \nIncentive amount \nComments \nRepayment plan \nTo qualify for the repayment plan\
      \ \nincentive, the following conditions must \n1. The Mortgage was 60 or more days \ndelinquent\
      \ at the time the Borrower \nentered into the repayment plan \n2. The Borrower completely reinstated\
      \ \nor paid off the Mortgage \n3. The Servicer reported the repayment \nplan to Freddie Mac via\
      \ Resolve® as \n(all types) \nModification® \nServicer incentives are capped at a total of $1,000\
      \ per Mortgage for all repayment plans, \nPayment Deferrals and Freddie Mac Flex Modifications.\
      \ Workout and relief options \ncompleted or begun prior to July 1, 2020 are not subject to the incentive\
      \ cap. \nStandard Short Sale \nand Make-Whole \nPreforeclosure Sales \n$2,200 \nStandard Deed-in-\n\
      $1,500 \n\n \nPage 9204-9 \n(“DIL”) \n \nServicers should direct questions regarding the status\
      \ of workout incentives to \nNPL_Invoices@FreddieMac.com. \n \nThe Servicer is not eligible to receive\
      \ compensation if: \n \n■ The Mortgage was sold to Freddie Mac with recourse \n \n■ The Mortgage\
      \ is insured by the FHA \n \n■ The Mortgage is guaranteed by the VA or RHS \n \n■ The Mortgage is\
      \ subject to indemnification \n \n(ii) Paying compensation \n \nServicers must elect to receive\
      \ these funds via the Automated Clearing House (ACH) by \nfollowing the steps outlined in Form 1132,\
      \ Authorization for Automatic Transfer of \nFunds Through the Automated Clearing House (ACH) For\
      \ Sellers/Servicers. (See Section \n2405.1(a) for delivery instructions for Form 1132.) \n \nFreddie\
      \ Mac will track all workouts a Servicer settles on a daily basis. Freddie Mac will \nalso send\
      \ the loan detail for all of the eligible workouts the Servicer settled and \nsuccessful repayment\
      \ plans that occurred during the period for which the Servicer is \nbeing compensated. Freddie Mac\
      \ considers a workout settled when Freddie Mac has \nreceived and successfully processed the documentation\
      \ and received the remittance and \ntransmission(s) specified in the table below. \n \nloan modification\
      \ settlement \ndata or Payment Deferral \nsettlement data in Resolve \n \n \nMortgage paid in full-prepaid.\
      \ \n(Note: Servicers should remit \n \n \n \n\n \nPage 9204-10 \nonly the net proceeds due to \n\
      Freddie Mac for a short sale \npayoff.) \nshort sale settlement data in \nResolve \n \n \n \nThe\
      \ original negotiated \npromissory note(s), if applicable \n \n \nBorrower cash contribution, if\
      \ \n \n \nForeclosure sale/DIL to report \nthe acquisition of the property \nand loan-level transaction\
      \ to \nreport Mortgage as a transfer to \n \n \n \n \nFreddie Mac will determine if a Servicer is\
      \ entitled to compensation for a successful \nrepayment plan of a Mortgage that was 60 or more days\
      \ delinquent based on the \ninformation the Servicer transmits to Freddie Mac via EDR and the Servicer’s\
      \ monthly \nloan-level reporting. \n \nThe Servicer must have: \n \n1. Informed Freddie Mac that\
      \ the Borrower has entered into a repayment plan (default \naction code 12) \n \n2. Notified Freddie\
      \ Mac that the Mortgage is current or is paid in full \n \n(b) Prohibition of certain Borrower fees;\
      \ non-refusal of workout options due to late charges \n \n\n \nPage 9204-11 \nThe Servicer may not\
      \ charge any additional fees to the Borrower other than those provided \nfor in Freddie Mac’s relief\
      \ and workout options. The Servicer may not refuse to consider a \nworkout option or require payment\
      \ of accrued late charges as a condition of doing a workout. \n \n(c) Mortgage insurance claims\
      \ \n \nFreddie Mac will file a claim for loss with the MI if the Mortgage is covered by mortgage\
      \ \ninsurance, and Freddie Mac will manage the claims payment process with the MI. The \nServicer\
      \ must provide all information and documentation pertaining to the claim to the MI no \nlater than\
      \ 60 days after the foreclosure sale, short sale or acceptance of a deed-in-lieu of \nforeclosure,\
      \ or within any shorter time frame as specified by the mortgage insurance master \n \nIf the MI\
      \ reduces, suspends or denies the claim due to the Servicer’s actions or inactions, \nincluding,\
      \ but not limited to, failure to comply with the Guide or applicable mortgage \ninsurance requirements,\
      \ then Freddie Mac may exercise its remedies provided by the Guide \nand the other Purchase Documents\
      \ for the amount that is reduced, suspended or denied. Refer \nto Chapter 3602 regarding repurchases,\
      \ repurchase alternatives and other remedies. \n\n \n \n \nPage 9205-1 \nChapter 9205: Home Affordable\
      \ Modification \nProgramSM (HAMP®) \n9205.1: Transfers of Servicing and document retention \nThis\
      \ chapter provides Servicing requirements with respect to those Borrowers who received a \nmodification\
      \ under the Home Affordable Modification ProgramSM (HAMP®). Servicers may no \nlonger evaluate Borrowers\
      \ for a HAMP Trial Period Plan or enter into a HAMP modification \nagreement with a Borrower. \n\
      \ \n \n \n■ Document retention requirements \n \n(a) Transfers of Servicing \n \nWhen a Transfer\
      \ of Servicing includes Mortgages modified under HAMP, the Transferor \nServicer must provide special\
      \ notification to the Transferee Servicer. This includes: \n \n■ Informing the Transferee Servicer\
      \ that Mortgages modified under HAMP are part of the \nportfolio being transferred, and \n \n■ Confirming\
      \ that the Transferee Servicer is aware of and agrees to assume the additional \nresponsibilities\
      \ associated with the Servicing of these Mortgages \n \nIf the portfolio being transferred includes\
      \ Mortgages modified under HAMP, the Transferor \n \n■ Indicate this in the Servicing Transfer Manager\
      \ tool (see Exhibit 88, Servicing Tools) as \npart of its request for Freddie Mac’s approval for\
      \ the Subsequent Transfer of Servicing \n \n■ Specify if the transfer includes modified Mortgages\
      \ that have a step-rate provision, where \nthe interest rate is subject to incremental increases\
      \ beginning in year 6 of the modification \n \n■ Identify any Mortgages that include a partial principal\
      \ forbearance \n \nFor electronically modified Mortgages, the Transferor Servicer must: \n \n■ Indicate\
      \ that the eModification Agreement is Electronic (as defined in Section 1402.1(a)) \n \n\n \n \n\
      \ \nPage 9205-2 \n■ Provide a list of such Mortgages and indicate the name of the repository holding\
      \ the \neModification Agreement \n \nServicers must comply with all other requirements with respect\
      \ to Transfers of Servicing \nprovided under Chapter 7101. \n \n(b) Document retention requirements\
      \ \n \nServicers must retain all documents and information received during the process of \ndetermining\
      \ Borrower eligibility for a modification under HAMP, including: \n \n■ The Borrower Response Package\
      \ \n \n■ Total monthly Mortgage payment and total monthly gross debt payment calculations \n \n\
      ■ Net present value (NPV) calculations and results (Treasury NPV Model and version used, \nassumptions,\
      \ inputs and outputs) \n \n■ Evidence of the Servicer’s application of each step of the waterfall\
      \ \n \n■ Escrow analysis, Escrow advances, and Escrow set up \n \nServicers must retain all documents\
      \ and information related to the monthly payments during \nand after the Trial Period, as well as\
      \ incentive payment calculations and such other required \n \nAll documents, records, data and information\
      \ required to be maintained by the Servicer under \nthis Chapter 9205 are, will be, and will remain\
      \ at all times, the property of Freddie Mac. The \nServicer must retain such documents, records,\
      \ data and information in a custodial capacity \nand otherwise comply with the Mortgage file retention\
      \ requirements set forth in Chapter \n3302. All documents required to be maintained under this Chapter\
      \ 9205 must be maintained \nin the Mortgage file. \n \nAs it relates to imminent default a Servicer\
      \ must: \n \n■ Document in its servicing system the basis for its determination that a Borrower\
      \ is in \nimminent default; and \n \n■ Retain all documentation and data used to reach its conclusion.\
      \ The Servicer’s \ndocumentation must also include any Imminent Default Indicator® input and output\
      \ files \nand data. \n \nServicers must retain detailed records of Borrower solicitations or Borrower-initiated\
      \ \ninquiries regarding HAMP, the outcome of the evaluation for modification under HAMP and \nspecific\
      \ justification with supporting details if the Borrower was determined to be ineligible \nfor a\
      \ modification under HAMP. \n\n \n \n \nPage 9205-3 \n \nServicers must maintain appropriate documentary\
      \ evidence of their HAMP-related activities, \nincluding, but not limited to, the following: \n\
      \ \n■ The Servicer’s process for pre-screening non-performing Mortgages against the basic \nHAMP\
      \ requirements \n \n■ All HAMP-related communications, whether verbal or written, with or to the\
      \ Borrower or \nperson identified in a written authorization by the Borrower and provided to the\
      \ Servicer \nin accordance with Section 9102.5(c) (Authorized Person) (including, but not limited\
      \ to, \nthe dates of communications, names of contact person(s), and a summary of the \nconversation),\
      \ including any e-mail correspondence to or from the Borrower or \nAuthorized Person \n \n■ Phone\
      \ contact with Borrowers or Authorized Persons relating to HAMP \n \n■ Policies and procedures that\
      \ include HAMP-related activities \n \n■ Training materials relating to HAMP \n \n■ Pre-screening\
      \ of Mortgages for HAMP prior to referring any Mortgage to foreclosure or \nconducting scheduled\
      \ foreclosure sales \n \n■ Postponement of scheduled foreclosure sales in applicable scenarios \n\
      \ \n■ Substitution of income documents for Borrowers in active Chapter 7 or Chapter 13 \nbankruptcy\
      \ \n \n■ Certification prior to foreclosure sale \n \n■ Evidence of receipt of the Borrower Response\
      \ Package from a Borrower \n \n■ Any reports, memoranda, or other documentation relating to HAMP\
      \ \n \n■ The decision-making process when applying good business judgment in accordance with \n\
      HAMP and, where applicable, referencing the Servicer’s associated policies and \n \nWith respect\
      \ to phone contact with Borrowers or Authorized Persons related to HAMP, welldocumented Servicer\
      \ system notes (including, but not limited to date, names of contact \npersons, and a summary of\
      \ the conversation) constitute appropriate documentation. Written \ncorrespondence should be retained\
      \ in the Mortgage file and made available upon request by \n \nRecords must also be retained to\
      \ document the reason(s) for a Borrower’s failure to \nsuccessfully complete the Trial Period, including:\
      \ \n\n \n \n \nPage 9205-4 \n \n■ When a HAMP modification is not pursued because the NPV test result\
      \ is negative. The \nServicer must document its consideration of other alternatives to foreclosure.\
      \ \n \n■ When a Borrower under a HAMP modification loses good standing by becoming 90 days \nor\
      \ more past due (e.g., three monthly payments are due and unpaid on the last day of the \nthird\
      \ month). The Servicer must retain documentation of its consideration of the \nBorrower for other\
      \ loss mitigation alternatives. \n \nWith respect to requirements related to the request for Borrower\
      \ and co-Borrower \ninformation for government monitoring purposes, the Servicer must retain the\
      \ appropriate \ndocumentation in the Mortgage file. \n \nServicers must retain required documents\
      \ for the period set forth in Section 3302.1(c). \n \nIf the Mortgage is subject to an indemnification\
      \ agreement, the Servicer must remit to \nFreddie Mac an annual payment for the amount of all modification-related\
      \ costs (e.g., interest \nrate shortfall) as calculated by Freddie Mac pursuant to Freddie Mac’s\
      \ “Modification Loss \nAmount” methodology. The Modification Loss Amounts due will be calculated\
      \ on a monthly \nbasis and billed on an annual basis for the life of the modified Mortgage. If the\
      \ Mortgage is \nsubject to a partial indemnification, each year the Servicer will be billed the\
      \ appropriate \npercentage of the Modification Loss Amount that corresponds with the partial \n\
      indemnification agreement. Modification Loss Amounts will be determined by Freddie Mac \nin accordance\
      \ with a process described in Bulletins 2016-5 and 2017-1. \n \nNote: Pursuant to Section 9204.3(a),\
      \ the Servicer is not eligible to receive an incentive for \ncompleting a modification on a Mortgage\
      \ that is subject to an indemnification agreement. \n9205.2: Special investor reporting requirements\
      \ and \ncompliance with applicable law for Mortgages \nmodified under Home Affordable Modification\
      \ \nProgramSM (HAMP®) (09/10/25) \n \n■ Monthly reporting \n \n■ Interim reporting and drafting\
      \ requirements for a payoff of a Mortgage with partial principal \n \n■ Application of partial prepayments\
      \ of principal and Home Affordable Modification \nProgramSM (HAMP®) Pay for Performance or HAMP\
      \ Year Six Pay for Performance \nincentives \n\n \n \n \nPage 9205-5 \n \n■ Monthly statements \n\
      \ \n■ Credit bureau reporting for all Mortgages with a partial principal forbearance \n \n■ Compliance\
      \ with applicable law on Mortgages modified under HAMP \n \n(a) Monthly reporting \n \nIn addition\
      \ to the loan-level reporting requirements for all Mortgages pursuant to Chapter \n8303 and Exhibit\
      \ 60, Loan-Level Reporting Data Description, Servicers must comply with \nthe following monthly\
      \ loan-level reporting requirements for all Mortgages modified under \nHAMP, including Mortgages\
      \ with a partial principal forbearance: \n \nCurrent UPB \nFor all Mortgages, this is the UPB of\
      \ the Mortgage as \nof the end of the Accounting Cycle. \nthe reported UPB must equal the sum of\
      \ the interestbearing UPB (the amortizing principal balance of the \nMortgage) (the “interest-bearing\
      \ UPB”) and the \nprincipal forbearance balance (“deferred UPB”), as of \nInterest-bearing UPB \n\
      report the amount of the interest-bearing UPB (the \namortizing principal balance of the Mortgage)\
      \ as of \nNote: Monthly “Interest Due Freddie Mac” must be \ncalculated and reported based on the\
      \ interest-bearing \nUPB only. \n\n \n \n \nPage 9205-6 \nreport the amount of deferred UPB as of\
      \ the end of the \nNote: The deferred UPB is non-interest-bearing and \nnon-amortizing, and will\
      \ be due in the form of a \nballoon payment upon the earlier of the transfer of all \nor a portion\
      \ of the property, the payoff of the interestbearing UPB, or the new maturity date of the modified\
      \ \nBorrower incentive \ncurtailment (BIC) \nFor all Mortgages modified under HAMP, report \nthe\
      \ amount of any Borrower “Pay for Performance” \nincentive payments paid by Freddie Mac and applied\
      \ \nto the UPB during the Accounting Cycle. This is \nreported to Freddie Mac only once a year for\
      \ each \neligible Mortgage. \nNote: The Borrower Pay for Performance incentive is \npaid once a\
      \ year and must be applied upon receipt to \nthe interest-bearing UPB of the Mortgage and then to\
      \ \nany principal forbearance amount (i.e., Deferred \nUPB), if applicable. \nSee Section 9205.2(c)\
      \ for additional information. \nPrincipal Due Freddie \nFor all Mortgages, Freddie Mac’s share of\
      \ principal \npayments, including prepayments of principal (i.e., \ncurtailments) applied to the\
      \ interest-bearing UPB of \nthe Mortgage during the Accounting Cycle. \nNote: This field does not\
      \ include curtailments \nresulting from the Borrower’s Pay for Performance \nincentive payment.\
      \ \n\n \n \n \nPage 9205-7 \nDeferred Principal \nreport the amount of any principal curtailment\
      \ applied \nto the deferred UPB during the Accounting Cycle. \nThis amount must be included in the\
      \ “Deferred UPB” \nNote: See Section 9205.2(c) below for additional \ninformation on the application\
      \ of partial prepayments \nof principal. \n \nReporting corrections \n \nServicers must comply with\
      \ the requirements of Section 8303.3(k) in the event of an \nunderstatement or overstatement of\
      \ principal reduction to either the interest-bearing UPB or \nthe deferred UPB. \n \nIn the event\
      \ of an overpayment of disbursed funds to the Servicer, a correction of such \noverpayment will\
      \ result in a draft back of any funds owed to Freddie Mac. If a previously \napplied BIC payment\
      \ must be reduced or reversed, the UPB of the Mortgage will be \nincreased in the same manner in\
      \ which the BIC payment was previously applied. That is, if \nthe BIC payment was applied as a reduction\
      \ to the interest-bearing UPB, then the Servicer \nmust report an increase in the interest-bearing\
      \ UPB for the amount of the correction, using \nthe principal balance correction exception code.\
      \ \n \nNote: Refer to Exhibit 60 for information on reporting a principal balance correction \n\
      exception code. \n \n(b) Interim reporting and drafting requirements for a payoff of a Mortgage\
      \ with partial \nprincipal forbearance \n \nServicers must comply with the applicable interim reporting\
      \ requirements set forth in \nChapter 8303 except that, when reporting the payoff of a Mortgage\
      \ with a partial principal \nforbearance, Servicers must also comply with the following: \n \n■\
      \ The Current UPB, Interest-bearing UPB and Deferred UPB fields must be reported as \n \n■ The amount\
      \ of deferred UPB as reported at the end of the previous Accounting Cycle \nmust be reported in\
      \ the “Deferred Principal Curtailment Amount” field \n \n\n \n \n \nPage 9205-8 \n■ Ensure funds\
      \ equivalent to the amount of the current UPB (i.e., combined interestbearing UPB and deferred UPB)\
      \ as reported in the previous Accounting Cycle, plus or \nminus the exception interest, are available\
      \ for Freddie Mac to draft on the Payoff Draft \nDate. Exception interest, as defined in Section\
      \ 8303.1(a) must be based on the interestbearing UPB only. \n \nServicers must calculate payoff\
      \ proceeds in accordance with the following: \n \nPayoff proceeds calculation \n Interest-Bearing\
      \ UPB \n+ \n+/- \nBorrower Incentive Curtailment Amount (if applicable) \n+/- \nException interest\
      \ (calculated based on the interest-bearing \nUPB) \n= \nProceeds due Freddie Mac \n \n(c) Application\
      \ of partial prepayments of principal and HAMP Pay for Performance or \nHAMP Year Six Pay for Performance\
      \ incentives \n \nThe Servicer must apply a HAMP Pay for Performance incentive or a HAMP Year Six\
      \ Pay \nfor Performance incentive as a principal curtailment in accordance with the following \n\
      \ \nHAMP Pay for Performance incentive/ Year Six Pay for Performance \nincentive \nIf the principal\
      \ curtailment… \nThen the Servicer must apply the \nfunds… \nIs less than the interest-bearing UPB\
      \ \nTo the interest-bearing UPB \nIs greater than or equal to the interestbearing UPB \nIn the following\
      \ order to the: \n1. Deferred UPB, if any, and then \n2. Interest-bearing UPB \nNote: After applying\
      \ a HAMP Pay for \nPerformance incentive or a HAMP \nYear Six Pay for Performance \nincentive in\
      \ the above order, the \nServicer must remit any remaining \n\n \n \n \nPage 9205-9 \nincentive\
      \ payment directly to the \n \nServicers must report the amount of any curtailment applied to the\
      \ deferred UPB during the \nAccounting Cycle in the “Deferred Principal Curtailment Amount” data\
      \ field. \n \n(d) Monthly statements \n \nFreddie Mac recommends the Servicer include the amount\
      \ of the deferred UPB and the \ncombined interest-bearing and deferred UPBs on the Borrower’s monthly\
      \ statement. \n \n(e) Credit bureau reporting for all Mortgages with a partial principal forbearance\
      \ \n \nServicers can access additional information on credit reporting unique to HAMP including\
      \ \nthe reporting of Mortgages with a partial principal forbearance from the Consumer Data \nIndustry\
      \ Association, which gives general credit reporting guidelines for Mortgage and home \nequity loans\
      \ in response to current financial conditions, at http://www.cdiaonline.org. \n \n(f) Compliance\
      \ with applicable law on Mortgages modified under HAMP \n \nThe Servicer’s implementation of HAMP\
      \ and all actions taken under this chapter must \ncomply with all applicable federal, State and\
      \ local laws and regulations including, but not \nlimited to, those laws set forth in Section 1301.2.\
      \ \n9205.3: Home Affordable Modification ProgramSM \n(HAMP®) electronic modification (12/17/25)\
      \ \n \n \n■ Electronic Home Affordable Modification ProgramSM (HAMP®) documents \n \n■ HAMP eModification\
      \ agreements \n \n\n \n \n \nPage 9205-10 \n \nServicers should be familiar with the following definitions\
      \ used in this section as defined in \nChapter 1401 for: \n \nDefined terms used in this section\
      \ \noptical, electromagnetic, or similar capabilities, as defined in the \n“UETA” and/or “E-SIGN”\
      \ \nA “Record” created, generated, sent, communicated, received, or \nstored by “Electronic” means,\
      \ as defined in the “UETA” and/or “ESIGN.” The term also includes a paper document converted into\
      \ an \nassociated with, a contract or other “Record” and executed or \nadopted by a person with\
      \ the intent to sign the “Record,” as defined \nrelating to the conduct of business, commercial,\
      \ or governmental \naffairs, using “Electronic” means, as defined in the “UETA” and/or \n“E-SIGN”\
      \ \n \n(b) Electronic HAMP documents \n \nIn lieu of having the Servicer or Borrower, as applicable,\
      \ prepare, sign and return paper \ndocuments, certain documents may be prepared, signed and sent\
      \ electronically by a Servicer \nto the Borrower or by a Borrower to the Servicer, provided such\
      \ Electronic Transactions \ncomply with the requirements of Chapter 1401 and this section. With\
      \ the exception of IRS \nForm 4506T-EZ, Short Form Request for Individual Tax Return Transcript,\
      \ or IRS Form \n4506-T, Request for Transcript of Tax Return, all documentation required to be prepared,\
      \ \nsigned or sent by either the Servicer or the Borrower under HAMP are considered “loss \nmitigation\
      \ documents” for purposes of Section 1401.3(h). \n \nNote: Refer to Section 9205.3(c) for additional\
      \ requirements related to the Home Affordable \nModification Agreement (the HAMP eModification Agreement).\
      \ \n \nAll Electronic loss mitigation documents, and any other Electronic Mortgage file documents\
      \ \nare Electronic Records, and must be capable of being retrieved and printed in a manner that\
      \ \naccurately reflects the information originally contained in the Electronic Records. All \nElectronic\
      \ Records must be accessible (either electronically or on paper) and promptly made \navailable to\
      \ Freddie Mac upon request. \n\n \n \n \nPage 9205-11 \n \n(c) HAMP eModification agreements \n\
      \ \n(i) Special representations and warranties \n \nA Servicer that allowed Borrowers to receive,\
      \ transmit or electronically sign a HAMP \neModification Agreement represents and warrants to Freddie\
      \ Mac that it has complied \nwith the requirements of the Guide and that the HAMP eModification\
      \ Agreement is \nauthentic, its terms are valid and enforceable against the Borrower, and the Mortgage\
      \ \nmaintains a First Lien position. \n \n(ii) General requirements applicable to all Freddie Mac\
      \ HAMP eModification \nAgreements \n \n \n■ Store HAMP eModification Agreements of Freddie Mac-owned\
      \ Mortgages \nelectronically under no less stringent requirements than the Servicer follows when\
      \ \nelectronically storing its own mortgages in its portfolio \n \n■ Consult with their legal counsel\
      \ to ensure that the Servicer’s use and storage of a \nHAMP eModification Agreement complies with\
      \ all applicable federal, State and local \nlaws, including, without limitation, the federal Electronic\
      \ Signatures in Global and \nNational Commerce (“E-SIGN”) Act and/or the Uniform Electronic Transactions\
      \ Act \n(UETA), as enacted in the local jurisdiction, the Gramm-Leach-Bliley Act, and its \nimplementing\
      \ regulations, and other applicable privacy, disclosure, and data security \nlaws and regulations\
      \ \n \n■ Provide for Electronic notarization when required, subject to applicable law \n \n■ Be\
      \ able to comply with all Guide requirements to service the Mortgage, as modified \nby a HAMP eModification\
      \ Agreement, including, but not limited to, Servicing \nobligations related to payoff (e.g., cancelation\
      \ of the Mortgage, Note and HAMP \neModification Agreement), grant of a deed-in-lieu of foreclosure,\
      \ foreclosure, \nrepurchase of an electronically modified Mortgage, and litigation \n \n■ Notify\
      \ Freddie Mac when initiating legal action, including foreclosure, on a Mortgage \nthat has been\
      \ electronically modified, and further, must use counsel that has the \nexperience or demonstrated\
      \ ability to enforce claims under electronically created \nMortgages, Notes or other financial instruments\
      \ \n \n(iii)Additional requirements when the HAMP Modification Agreement must be \nrecorded or in\
      \ recordable format \n \nIf, at the time a Servicer entered into a HAMP Modification Agreement,\
      \ Freddie Mac \nrequired the HAMP Modification Agreement to be recorded or in recordable format,\
      \ a \n\n \n \n \nPage 9205-12 \nServicer must record any HAMP eModification Agreement in compliance\
      \ with the \nrecording jurisdiction’s recordation and electronic format requirements in order to\
      \ ensure \ncompliance with the Servicer’s obligations under Section 9206.2(c). \n \n(iv) Document\
      \ custodial requirements \n \nIf recordation of a HAMP eModification Agreement that is in recordable\
      \ format is \nrequired, the Servicer must provide a copy of the recorded HAMP eModification \nAgreement\
      \ or a copy of any evidence of recordation together with a copy of the executed \nHAMP eModification\
      \ Agreement to its Document Custodian in accordance with the \nrequirements in Section 1401.3(e)\
      \ applicable to recordation of an Electronic Record. \n \n(v) Storage and safekeeping of HAMP eModification\
      \ Agreements \n \nHAMP eModification Agreements (including printed paper copies of facsimiles of\
      \ \nHAMP eModification Agreements) must be stored in accordance with the Guide \nrequirements for\
      \ storing Mortgage file documents. HAMP eModification Agreements \nmust be associated with all paper\
      \ Mortgage file documents so that all Servicing records \n(both paper and electronic) are identified\
      \ with, and associated to, the particular Mortgage \n \n(vi) Transfers of Servicing \n \nFor requirements\
      \ related to the Transfers of Servicing of an eModification, refer to \nSection 9205.1(a). \n \n\
      (vii) Data security requirements and data privacy protection \n \n \nServicers must follow the data\
      \ security requirements in Sections 1302.2 and 1401.2(c) \nand the data privacy protection standards\
      \ in Section 8101.4(d). Servicers are required to \nmaintain their Servicing records storage system\
      \ and conduct periodic information \nsecurity reviews of the data stored and maintained in their\
      \ Servicing records storage \nsystem based on, but not limited to, applicable federal, State and\
      \ local laws and \nregulations and the Guide. \n \nFreddie Mac reserves the right to require a Servicer\
      \ to implement additional security \nmeasures regarding its Servicing records storage system. \n\
      \ \n(viii) Disaster Recovery/Business Continuity Plan \n \nServicers must create and maintain a\
      \ Disaster Recovery/Business Continuity Plan \n(DR/BCP) that includes a backup storage site that\
      \ is not susceptible to the same types of \nmajor disasters as the primary storage site. The DR/BCP\
      \ must provide for recovery of \nfunctionality, availability, and data services back to the point\
      \ of failure within a \ncommercially reasonable period of time (usually within 48 hours of a disaster).\
      \ \n\n \n \n \n \n \nPage 9206-1 \nChapter 9206: Modifications \n9206.1: Freddie Mac Flex Modification®\
      \ overview, \neligibility and requirements (05/01/26) \n \n■ What is a loan modification? \n \n\
      ■ When to consider a Freddie Mac Flex Modification® \n \n■ Eligibility and documentation requirements\
      \ for a Freddie Mac Flex Modification \n \n■ Ineligibility for Freddie Mac Flex Modification \n\
      \ \n■ Determining imminent default for a Freddie Mac Flex Modification \n \n■ Property valuation\
      \ requirements for a Freddie Mac Flex Modification \n \n(a) What is a loan modification? \n \nA\
      \ modification is a written agreement that the Servicer enters into with the Borrower that \npermanently\
      \ changes one or more of the original terms of the Note, such as: \n \n■ An increase in the amount\
      \ of the UPB caused by capitalization of interest or non-interest \narrearages, Escrow amounts and/or\
      \ other advances \n \n■ A change in the Note Rate \n \n■ A change in the monthly payment \n \n■\
      \ A change in the maturity date \n \n■ A forbearance of a portion of the principal balance (no write-off\
      \ or permanent reduction \nof the UPB, delinquent interest or other non-interest arrearages of the\
      \ Mortgage is \nallowed) \n \n■ Change in the product type (e.g., an ARM to a fixed-rate Mortgage)\
      \ \n \n(b) When to consider a Freddie Mac Flex Modification \n \nThe Servicer must evaluate the\
      \ Borrower for a Freddie Mac Flex Modification under Chapter \n9206 in accordance with the evaluation\
      \ hierarchy in Section 9201.2. \n \n\n \n \n \n \n \nPage 9206-2 \nUnless otherwise notified by\
      \ Freddie Mac, all Freddie Mac Servicers are delegated to \napprove, and must offer, a Freddie Mac\
      \ Flex Modification to eligible Borrowers in \naccordance with the requirements of the Guide and\
      \ other applicable Purchase Documents. \nRefer to Section 1301.2(i) for additional information about\
      \ delegated authority and adverse \naction notice requirements. \n \n(c) Eligibility and documentation\
      \ requirements for a Freddie Mac Flex Modification \n \nTo be eligible for a Freddie Mac Flex Modification,\
      \ the Servicer must ensure that the \nfollowing Borrower and Mortgage eligibility requirements are\
      \ met and that the Mortgage is \nnot otherwise excluded from eligibility as set forth in Section\
      \ 9206.1(d). \n \nIf any of the eligibility requirements are not met, but the Servicer believes,\
      \ based on an \nevaluation of a complete Borrower Response Package, that the Borrower should be\
      \ \nconsidered for a Freddie Mac Flex Modification, the Servicer must transmit the exception \n\
      request via Resolve® to Freddie Mac. Refer to Section 9206.2(a) for additional information \non\
      \ Resolve. \n \nIn addition, if there is a Risk of Property Ownership (see Section 9202.2(b)) and\
      \ the \nMortgage is not otherwise eligible for a Freddie Mac Flex Modification, the Servicer may\
      \ \nsubmit a recommendation to Freddie Mac to consider a Freddie Mac Flex Modification. \n \nIn\
      \ the event Freddie Mac participated in evaluating a Borrower for a Freddie Mac Flex \nModification\
      \ and Freddie Mac denied the request, the Servicer must refer to Section \n \n(i) Borrower eligibility\
      \ \n \nThe Borrower must: \n \n■ Submit a complete Borrower Response Package and: \n \n❑ Have an\
      \ eligible hardship as described in Section 9202.1(b). The hardship must \ncurrently be causing\
      \ or be expected to cause a long-term or permanent decrease in \nthe Borrower’s income or increase\
      \ in the Borrower’s expenses. \n \nNote: Unemployment is considered a temporary hardship. Servicers\
      \ must consider \nunemployed Borrowers for a forbearance plan under Sections 9203.3(a) through \n\
      9203.3(f). \n \n❑ Have verified income \n \n\n \n \n \n \n \nPage 9206-3 \n■ Be 60 days or more\
      \ delinquent, or \n \n■ Is determined to be in imminent default in accordance with Section 9206.1(e)\
      \ \n \n(ii) Mortgage eligibility \n \n■ The Mortgage must have been originated at least 12 months\
      \ prior to the evaluation \ndate for the Freddie Mac Flex Modification \n \n■ The Mortgage must\
      \ be a conventional First Lien Mortgage currently owned or \nguaranteed in whole or in part by Freddie\
      \ Mac \n \n■ The Freddie Mac Flex Modification must result in a principal and interest payment \n\
      that is less than or equal to the pre-modification principal and interest payment. \n(Refer to Section\
      \ 9206.2(a) for additional payment reduction requirements that may \napply.) \n \nWhen determining\
      \ whether the modification results in a principal and interest \npayment that is less than or equal\
      \ to the pre-modification principal and interest \npayment, the Servicer must consider the following:\
      \ \n \n❑ If the Borrower has been granted interest rate relief under the Servicemembers \nCivil\
      \ Relief Act (SCRA), the Servicer must consider the principal and interest \npayment in effect prior\
      \ to the date the SCRA relief was granted rather than the \ntemporarily reduced monthly payment\
      \ based on the SCRA interest rate cap \n \n❑ If the Mortgage being modified is an ARM or an interest-only\
      \ Mortgage, the \nServicer must consider the principal and interest payment or interest-only \n\
      payment as applicable, in effect at the time the Servicer determines eligibility for \na Freddie\
      \ Mac Flex Modification Trial Period Plan \n \n■ If the Mortgage is subject to an indemnification\
      \ agreement and is otherwise eligible \nunder the requirements of this chapter, the Servicer has\
      \ discretion to approve the \nMortgage modification provided the following conditions are met: \n\
      \ \n❑ The modified Mortgage retains its credit enhancement \n \n❑ If the Servicer is not the credit\
      \ enhancement provider, the Servicer must first \nobtain in writing any required approval under\
      \ the terms of the credit enhancement \nfrom the entity providing the enhancement to enter into\
      \ a modification agreement \nthat complies with the requirements of this chapter; and \n \n❑ The\
      \ Servicer remits to Freddie Mac an annual payment for the amount of all \nmodification-related\
      \ costs (e.g., interest rate shortfall) as calculated by Freddie \nMac pursuant to Freddie Mac’s\
      \ “Modification Loss Amount” methodology. The \nModification Loss Amounts due will be calculated\
      \ on a monthly basis and billed \n\n \n \n \n \n \nPage 9206-4 \non an annual basis for the life\
      \ of the modified Mortgage. If the Mortgage is \nsubject to a partial indemnification, each year,\
      \ the Servicer will be billed the \nappropriate percentage of the Modification Loss Amount that\
      \ corresponds with \nthe partial indemnification agreement. Modification Loss Amounts will be \n\
      determined by Freddie Mac in accordance with a process described in Bulletins \n2016-5 and 2021-14.\
      \ \n \nNote: Pursuant to Section 9204.3(a), the Servicer is not eligible to receive an \nincentive\
      \ for completing a modification on a Mortgage that is subject to an \nindemnification agreement.\
      \ \n \n■ If the Mortgage is secured by a leasehold estate, the term of the lease (or any \nexercised\
      \ option to renew the lease or any renewal options that are enforceable by the \nleasehold mortgagee,\
      \ whichever is applicable) must not terminate earlier than five \nyears after the maturity date\
      \ of the proposed modified Mortgage. In the event that the \ncurrent term of the lease (or applicable\
      \ renewal options) terminates earlier than five \nyears after the maturity date of the proposed\
      \ modified Mortgage, the term of the lease \nmust be renegotiated in order to satisfy this requirement\
      \ prior to offering the \nBorrower a Trial Period Plan. \n \nServicers must refer to the special\
      \ requirements in Section 9206.1(c)(v) for Borrowers \nwho experience a hardship as a result of\
      \ an Eligible Disaster and who were current or less \nthan 31 days delinquent as of the date of\
      \ the disaster. \n \n(iii)Streamlined eligibility for certain Borrowers \n \nCertain eligibility\
      \ exceptions apply for a Borrower who: \n \n■ Is 90 days delinquent or greater as of the evaluation\
      \ date; or \n \n■ Has a Step-Rate Mortgage and: \n \n❑ Becomes 60 days delinquent within the 12\
      \ months following the first payment \ndue date resulting from an interest rate adjustment \n \n\
      ❑ Has not submitted a complete Borrower Response Package \n \nFor these Borrowers, the eligibility\
      \ requirements in Section 9206.1(c)(i) are not \napplicable. In these instances, a Borrower Response\
      \ Package is not required, and the \nServicer is not required to confirm a Borrower’s hardship or\
      \ income. The Servicer must \ncontinue to comply with the requirements in Sections 9206.1(c)(ii)\
      \ and 9206.1(d) to \ndetermine eligibility. \n \nNote: Payments received after the evaluation date\
      \ do not impact Borrower eligibility even \nif the payments result in the Mortgage becoming less\
      \ than 90 days delinquent. \n \n\n \n \n \n \n \nPage 9206-5 \nThe Servicer must evaluate the Borrower\
      \ for a Freddie Mac Flex Modification Trial \nPeriod Plan offer in accordance with the eligibility\
      \ requirements described in this section \nand the solicitation requirements in Section 9102.5 to\
      \ an eligible Borrower who: \n \n■ Becomes 90 days delinquent, or \n \n■ Has a Step-Rate Mortgage\
      \ and becomes 60 days delinquent within the 12 months \nfollowing the first payment due date resulting\
      \ from an interest rate adjustment \n \nBefore offering such Borrower a Freddie Mac Flex Modification\
      \ Trial Period Plan, \nServicers must either obtain the applicable MI’s approval of the terms of\
      \ each \nmodification on a case-by-case basis or ensure that the applicable MI has provided a \n\
      delegation of authority that applies to the requested modification. \n \nNote: Payments received\
      \ after the evaluation date do not impact Borrower eligibility even \nif the payments result in\
      \ the Mortgage becoming less than 90 days delinquent. \n \nRefer to Section 9102.5 for additional\
      \ information on solicitation of delinquent \n \n(iv) Complete Borrower Response Package received\
      \ \n \nIf the Borrower submits a complete Borrower Response Package prior to the Borrower \nbecoming\
      \ 90 days delinquent, the Servicer must acknowledge receipt of the package and \nreview it in accordance\
      \ with the evaluation hierarchy found in Section 9201.2. \n \nThe Servicer must send an eligible\
      \ Borrower an offer for a Freddie Mac Flex \nModification in accordance with the requirements of\
      \ Section 9206.1(c)(iii) once the \nBorrower reaches the applicable Delinquency threshold if: \n\
      \ \n■ The Servicer has not received a complete Borrower Response Package, or \n \n■ The Servicer\
      \ previously conducted an evaluation of a complete Borrower Response \nPackage and determined that\
      \ the Borrower was not eligible for any alternative to \nforeclosure, or \n \n■ The Borrower has\
      \ rejected all other alternatives to foreclosure offered by the Servicer \n \nIn addition, if a\
      \ Borrower with a Step-Rate Mortgage submits a complete Borrower \nResponse Package prior to becoming\
      \ 90 days delinquent, and the Borrower has not yet \naccepted the offer for a Freddie Mac Flex Modification,\
      \ the Servicer must complete its \nreview of the package for all alternatives to foreclosure in\
      \ accordance with the Guide. If \nthe Borrower is eligible for additional payment relief, then the\
      \ Servicer must permit the \nBorrower to continue making the existing Trial Period Plan payments\
      \ but must update the \nmodification agreement to reflect the lower payment amount. The post-modification\
      \ \nprincipal and interest payment must reflect the lower payment amount in these instances. \n\n\
      \ \n \n \n \n \nPage 9206-6 \n \n(v) Special requirements for Borrowers impacted by an Eligible\
      \ Disaster \n \nThe requirements of this Section 9206.1(c)(v) apply to Borrowers who were current\
      \ or \nless than 60 days delinquent as of the date the Eligible Disaster occurred, experienced a\
      \ \nhardship as a result of the Eligible Disaster and were at least 90 days delinquent as of the\
      \ \nevaluation date. \n \nNote: Payments received after the evaluation date do not impact eligibility\
      \ even if the \npayment results in the Mortgage becoming less than 90 days delinquent. \n \nThe\
      \ following special requirements apply when the Freddie Mac Flex Modification is \noffered as a\
      \ result of the Borrower experiencing a hardship as the result of an Eligible \nDisaster: \n \n\
      ■ The Servicer is not required to have previously solicited the Borrower for a \nforeclosure prevention\
      \ alternative \n \n■ The following Mortgages are ineligible for a Freddie Mac Flex Modification.\
      \ These \nexclusions are in lieu of the requirements described in Section 9206.1(c)(ii) above \n\
      and Section 9206.1(d) below: \n \n❑ The Mortgage is an FHA, VA or Guaranteed Rural Housing Mortgage\
      \ \n \n❑ The Mortgage is subject to recourse \n \n❑ With the exception of a disaster-related forbearance\
      \ plan, the Mortgage is \ncurrently performing under another forbearance plan, Trial Period Plan\
      \ or \n \n❑ The Mortgage is subject to an approved short sale or deed-in-lieu of foreclosure \n\
      \ \n❑ The Mortgage is currently subject to an unexpired offer to the Borrower for \nanother modification\
      \ or other foreclosure prevention alternative, such as a nondisaster-related forbearance or repayment\
      \ plan \n \n❑ The Mortgage is not a conventional First Lien Mortgage currently owned or \nguaranteed\
      \ in whole or in part by Freddie Mac \n \n❑ The Freddie Mac Flex Modification would result in a\
      \ principal and interest \npayment that is greater than the pre-modification principal and interest\
      \ payment \n \n❑ The Mortgage is secured by a leasehold estate and the term of the lease does not\
      \ \nmeet the requirements described in Section 9206.1(c)(ii) \n \n\n \n \n \n \n \nPage 9206-7 \n\
      If the Servicer was not collecting Escrows on the existing Mortgage, the Borrower is \nnot required\
      \ to establish an Escrow account as a condition of the modification unless \notherwise required\
      \ by applicable law, or the Servicer confirms that the taxes and \ninsurance premiums have not been\
      \ paid and are past due. \n \nFor special requirements related to solicitations for streamlined\
      \ offers for Freddie \nMac Flex Modifications for certain Borrowers, the Servicer must refer to\
      \ Section \n9203.4(i). If the Borrower is ineligible for streamlined offers under the requirements\
      \ \nof Section 9203.4(i) and this section but is at least 90 days delinquent, the Servicer \nmust\
      \ evaluate the Borrower in accordance with the requirements of Section \n \n(d) Ineligibility for\
      \ Freddie Mac Flex Modification \n \nThe following Mortgages and Borrowers are ineligible for a\
      \ Freddie Mac Flex Modification: \n \n \n \n■ Mortgages secured by second homes or non-owner-occupied\
      \ properties (i.e., Investment \nProperties) where the Borrower is current or less than 60 days\
      \ delinquent \n \nThe following Mortgages and Borrowers are also ineligible for a Freddie Mac Flex\
      \ \nModification. However, if the Servicer believes, based on the Borrower’s individual \ncircumstances,\
      \ that the Borrower should be considered for a Freddie Mac Flex Modification, \nthe Servicer should\
      \ submit the request to Freddie Mac (refer to Section 9206.1(c) for \ninformation on submitting\
      \ an exception request to Freddie Mac): \n \n■ Mortgages that have been previously modified three\
      \ or more times \n \n■ Mortgages previously modified with the Freddie Mac Flex Modification terms\
      \ \ndetermined in accordance with Section 9206.2(a) where: \n \n❑ The Mortgage became 60 or more\
      \ days delinquent within 12 months of the \nModification Effective Date, and \n \n❑ The Borrower\
      \ has not brought the Mortgage current following the Delinquency \n \n■ Borrowers who, within 12\
      \ months of the evaluation date, failed a Freddie Mac Flex \nModification Trial Period Plan and\
      \ the terms of that Trial Period Plan were determined in \naccordance with Section 9206.2(a) \n\
      \ \n■ The Mortgage is subject to an approved short sale or deed-in-lieu of foreclosure \n \n\n \n\
      \ \n \n \n \nPage 9206-8 \n■ The Borrower is currently performing under another Trial Period Plan,\
      \ forbearance plan \nor repayment plan \n \n■ The Mortgage is currently subject to an unexpired\
      \ offer to the Borrower for another \nmodification or other alternative to foreclosure, such as\
      \ a forbearance, repayment plan or \n \nAny Borrower who is ineligible for a Freddie Mac Flex Modification\
      \ must provide a \ncomplete Borrower Response Package in order to be evaluated for the most appropriate\
      \ \nworkout solution in accordance with the evaluation hierarchy in Section 9201.2. \n \n(e) Determining\
      \ imminent default for a Freddie Mac Flex Modification \n \n \nIn order to be eligible for a Freddie\
      \ Mac Flex Modification, Borrowers who are current or \nless than 60 days delinquent must be determined\
      \ to be in imminent default and must be \noccupying the property as a Primary Residence. The Servicer\
      \ must verify that at least one \nBorrower is occupying the property as a Primary Residence based\
      \ on a review of a credit \nreport. If the credit report does not indicate that the property securing\
      \ the Mortgage is the \nPrimary Residence for a Borrower, then the Servicer must use good business\
      \ judgment in \nreconciling the inconsistency. This additional due diligence on the part of the\
      \ Servicer \nmust be documented in the Mortgage file/servicing system. \n \nAn imminent default\
      \ evaluation is necessary when the status of the Mortgage is current or \nless than 60 days delinquent\
      \ as of the date the Servicer commences the initial evaluation \nof the Borrower’s financial condition\
      \ using the imminent default evaluation business \nrules as described in Section 9206.1(e)(ii).\
      \ \n \nThe Servicer must rely on the same Mortgage status used to initiate the imminent default\
      \ \nevaluation to complete the imminent default determination process, regardless of whether \n\
      the Borrower becomes 60 days or more delinquent during the imminent default \nevaluation. \n \n\
      (ii) Imminent default evaluation business rules \n \nResolve will evaluate the information the Servicer\
      \ provides against the imminent default \nbusiness rules. Any Borrower who is current or less than\
      \ 60 days delinquent at the time \nthe Servicer commences the initial evaluation is in imminent\
      \ default if the Borrower \nmeets the requirements of the following business rules: \n \n\n \n \n\
      \ \n \n \nPage 9206-9 \nImminent Default Evaluation business rules \nTo be considered in imminent\
      \ default, the Borrower must meet all requirements \nunder Business rule 1, and must meet the requirements\
      \ for either: \nBusiness rule 1 \n■ Be current or less than 60 days delinquent as of the evaluation\
      \ \n■ Occupy the property as a Primary Residence; or at least one \nBorrower on the Mortgage must\
      \ occupy the property as his or her \n■ Have Cash Reserves less than $25,000 \n■ Have an eligible\
      \ hardship as described in Section 9202.1(b) \nBusiness rule 2 \nThe Borrower is considered in imminent\
      \ default if: \n■ The Borrower meets the requirements of business rule 1, and \n■ The Borrower’s\
      \ FICO® score is less than or equal to 620 \ndetermined in accordance with Section 9206.1(e)(v);\
      \ AND \nEITHER \n❑ The Mortgage has had two or more 30-day Delinquencies in \nthe most recent 6-month\
      \ period; OR \n❑ The Borrower’s pre-modification housing expense-to-income \nratio is greater than\
      \ 40% \nIf the Borrower has one of the Imminent Default Hardships described \nbelow in business\
      \ rule 3, the Borrower may be determined to be in \nimminent default even if these business rule\
      \ 2 requirements are not \nBusiness rule 3 \nThe Borrower is considered in imminent default if the\
      \ Borrower \nmeets the requirements of business rule 1, and the Borrower provided \nthe documentation\
      \ required in Section 9202.1(b) supporting one of \nthe Imminent Default Hardships listed below:\
      \ \n■ Death of a Borrower or death of either the primary or secondary \nwage earner in the household\
      \ \n■ Long-term or permanent disability; or serious illness of a \n\n \n \n \n \n \nPage 9206-10\
      \ \nImminent Default Evaluation business rules \nTo be considered in imminent default, the Borrower\
      \ must meet all requirements \nunder Business rule 1, and must meet the requirements for either:\
      \ \n■ Divorce or legal separation; separation of Borrower unrelated by \nmarriage, civil union or\
      \ similar domestic partnership under \napplicable law; or \n■ Principal and interest payment increase\
      \ as a result of an interest \nadjustment applied to a Step-Rate Mortgage no more than 12 \nmonths\
      \ prior to the evaluation date \nThe Imminent Default Hardship must currently cause and be \nexpected\
      \ to continue to cause a long-term or permanent decrease in \nincome or increase in expenses. \n\
      \ \nThe Servicer must enter all information in Resolve for business rule 1 and business rule \n\
      2 in all instances, even if the Borrower does not meet the requirements under business \nrule 2\
      \ and instead is approved based on the Imminent Default Hardship under business \nrule 3. \n \n\
      (iii)Income and asset documentation and verification \n \n(A) Documentation and verification \n\
      \ \nTo be evaluated for imminent default, a Borrower must, at a minimum, provide a \ncomplete Borrower\
      \ Response Package as defined in Section 9102.5(d). In addition to \nthe income documentation required\
      \ under Section 9202.1(c), the Servicer must obtain \nthe Borrower’s FICO score in accordance with\
      \ Section 9206.1(e)(v). \n \n(B) Verification of income and assets; resolution of material inconsistencies\
      \ \n \nServicers must review all documentation submitted by the Borrower to identify any \nmaterial\
      \ inconsistencies, including material inconsistencies with a tax return or tax \ntranscript if one\
      \ was obtained under Section 9202.1(c). If, based on the Servicer’s \ngood business judgment, there\
      \ are material inconsistencies with respect to the income \nor asset information disclosed by the\
      \ Borrower or with other documentation relevant \nto the imminent default decision, the Servicer\
      \ must obtain other documentation to \nreasonably reconcile such material inconsistencies. Servicers\
      \ must also document \nsuch material differences in their servicing system. If the Servicer cannot\
      \ reconcile \nsuch material differences, the Borrower cannot be considered in imminent default.\
      \ \n \n(iv) Cash Reserves test \n\n \n \n \n \n \nPage 9206-11 \n \nimminent default. If the Borrower\
      \ either discloses or provides documentation indicating \nthe Borrower has Cash Reserves equal to\
      \ or greater than $25,000, then the Borrower is \nnot in imminent default. \n \n(A) Definition of\
      \ Cash Reserves \n \nFor purposes of determining imminent default, Cash Reserves are defined as\
      \ follows: \n \nwithdrawal from any financial institution or brokerage, including funds on deposit\
      \ in \nthe Borrower’s checking, savings, money market or certificate of deposit account or \nother\
      \ depository account, stocks, bonds, mutual funds, U.S. Government Securities \nand other securities\
      \ that are traded on an exchange or marketplace generally available \nto the public (e.g., New York\
      \ Stock Exchange, National Association of Securities \nDealers Automated Quotations, Midwest SE,\
      \ Chicago Board of Trade or Over the \nCounter) for which the price can be readily verified through\
      \ financial publications. \n \nAssets are only considered retirement assets if they are held in\
      \ a qualified retirement \naccount such as a 401k 403b, 457, Individual Retirement Account (IRA)\
      \ or pension \nfund. If the assets are not held in a retirement account, the assets must be considered\
      \ \nCash Reserves. \n \n(B) Calculating Cash Reserves \n \n \n■ The Servicer must determine that,\
      \ for every Borrower on the Mortgage, all of the \nBorrower’s Cash Reserves have been accounted\
      \ for on Form 710, Mortgage \nAssistance Application \n \n■ In making the determination that all\
      \ Cash Reserves have been accounted for, the \nServicer must review all information provided by\
      \ the Borrower to determine if the \nasset information stated on Form 710 is reasonably consistent\
      \ with information \navailable from all other information provided by the Borrower, including verbal\
      \ \ninformation shared by the Borrower. If there are inconsistencies between the \nBorrower’s disclosure\
      \ of assets and the information provided by the Borrower, \nthen the Servicer must obtain the Borrower’s\
      \ tax return or tax transcript in order \nto reconcile the inconsistencies. \n \nIf, upon reviewing\
      \ the Borrower’s tax return or tax transcript, if applicable, the \nServicer observes interest,\
      \ dividend income or gains/losses that, in total, that \ncould not be reasonably produced by the\
      \ Borrower’s disclosed Cash Reserves, \nand such income indicates deposits, securities holdings\
      \ or other assets that could \n\n \n \n \n \n \nPage 9206-12 \nbe in excess of the amounts disclosed\
      \ by the Borrower on Form 710, the Servicer \nmust reconcile the inconsistency with the Borrower.\
      \ The Servicer must require the \nBorrower to produce a signed federal tax return and all relevant\
      \ schedules, in the \nevent the Servicer used a tax transcript in lieu of a tax return, along with\
      \ any other \nrelevant documentation that verifies the disposition and/or current status of those\
      \ \nassets, which produced the income or gains/losses to resolve the inconsistency. \n \nThe Servicer\
      \ must ensure that the Borrower’s disclosure of assets is reasonably \naccurate despite the inconsistency\
      \ between the disclosed assets and the income or \ngain/loss from assets reported on the tax return\
      \ or tax transcript. In determining \nwhat documentation is needed to reconcile an inconsistency,\
      \ the Servicer must \nreview the detailed tax return schedules and forms, and request from the Borrower\
      \ \ncopies of recent and past statements from those asset holdings or transactions \nindicated on\
      \ the schedules and forms that produced the income or gain/loss (e.g., \nchecking, savings, brokerage\
      \ account statements, asset sale statements or records, \netc.). \n \n■ If there are inconsistencies\
      \ between the Borrower’s disclosure of assets and the \ntax return information that cannot be reconciled,\
      \ the Borrower cannot be \nconsidered in imminent default \n \nIf the Servicer determines that the\
      \ Borrower has Cash Reserves of less than $25,000 \nand meets all other requirements of Section\
      \ 9206.1(e)(ii) then the Borrower is \nconsidered to be in imminent default. \n \n(v) Imminent default\
      \ Credit Score \n \nServicers must choose one FICO score that is adequately indicative of the credit\
      \ \nreputation of all Borrowers currently on the Mortgage. Servicers must use a Credit Score \n\
      based on the FICO credit-scoring model. This score must be obtained and determined in \naccordance\
      \ with the requirements below. \n \n(A) Obtaining FICO scores for each Borrower \n \n(I) Borrowers\
      \ with FICO scores \n \nThe Servicer must request a FICO score for each Borrower on the Mortgage\
      \ from \nany one of the following three credit repositories: \n \n■ Equifax Credit Information Services\
      \ \n \n■ Experian Information Systems and Services \n \n■ TransUnion Credit Information Company\
      \ \n \n\n \n \n \n \n \nPage 9206-13 \nThe Borrower’s FICO score must be less than 90 days old on\
      \ the date the Servicer \nperforms the imminent default evaluation. \n \n(II) Borrowers with no\
      \ available FICO score \n \nIt is unusual for any Borrower who has obtained a Mortgage not to have\
      \ a FICO \nscore. If no single FICO score can be identified for a Borrower, the Servicer must \n\
      recheck the information provided when ordering the FICO scores and resubmit a \nrequest. If the\
      \ Servicer is still unable to obtain a FICO score for that Borrower, it \nmay rely on the FICO scores\
      \ of all other Borrowers as determined in accordance \nwith this section. \n \nAbsent a FICO score\
      \ for any Borrower on the Mortgage, the Borrower may not be \ndetermined to be in imminent default\
      \ under the requirements of business rule 2, \nand the Servicer must proceed to evaluate the Borrower\
      \ under the requirements of \nbusiness rule 3 in Section 9206.1(e)(ii). In such instances when a\
      \ FICO score is \nnot available for any Borrower on the Mortgage, the Servicer must: \n \n1. Maintain\
      \ documentation in the Mortgage file that demonstrates the Servicer’s \nattempts to obtain FICO\
      \ scores from all three credit repositories on all \n \n2. Enter the result that a FICO score is\
      \ not available for any Borrower on the \n \n3. Proceed to the Imminent Default Hardship test in\
      \ Business Rule 3 to \ndetermine if an Imminent Default Hardship exists \n \n(B) Determining the\
      \ Imminent Default Credit Score \n \nThe Servicer must identify the Imminent Default Credit Score\
      \ in accordance with the \n \n■ The Servicer must first select a single FICO score for each Borrower\
      \ on the \nMortgage. If the Servicer obtains multiple FICO scores for a single Borrower, the \n\
      Servicer must use the middle/lower method to select the single FICO score for \nthat Borrower. This\
      \ method is the most predictive when determining a single \nBorrower’s overall credit reputation.\
      \ If three FICO scores are obtained for a \nBorrower, the single score for that Borrower is the\
      \ one with the middle value. For \nexample, if the FICO scores were 660, 656 and 640, the single\
      \ FICO score \nselected by the Servicer should be 656. When there is a duplicate score, the Seller\
      \ \nmust select that score to be the single score. If the FICO scores for a Borrower \nwere 660,\
      \ 660 and 640, the Servicer should select 660. If two FICO scores were \nobtained for a Borrower,\
      \ the Servicer must select the lower of the two FICO \nscores to be the single FICO score for that\
      \ Borrower. \n \n\n \n \n \n \n \nPage 9206-14 \n■ If there is only one Borrower on the Mortgage,\
      \ the single FICO score, determined \nin accordance with the above requirements, is considered the\
      \ Imminent Default \nCredit Score \n \n■ If there are multiple Borrowers on the Mortgage, the Servicer\
      \ must determine the \nsingle FICO score for each Borrower using the method described above. The\
      \ \nServicer must then select either the lowest FICO score across all Borrowers on the \nMortgage\
      \ or the average FICO score from all Borrowers’ single scores. (Note: \nWhichever method is used,\
      \ the Servicer should choose the single FICO score \nusing the same method and procedure for all\
      \ Borrowers and for all Mortgages \nconsistent with fair lending laws.) \n \n(vi) Calculating pre-modification\
      \ housing expense-to-income ratio \n \nThe Servicer must input verified income data into Resolve.\
      \ Based on the Servicer’s input, \nResolve will determine if the Borrower’s pre-modification housing\
      \ expense-to-income \nratio is greater than 40%. For purposes of this determination, the Borrower’s\
      \ current \nmonthly housing expense is divided by the Borrower’s monthly gross income (or the \n\
      Borrowers’ combined monthly gross income in the case of co-Borrowers) plus any \nallowable non-obligor\
      \ household income. \n \nThe Borrower’s current monthly housing expense consists of the following,\
      \ as applicable: \n \n \n \n \n \n■ Any escrow shortage currently included as part of the monthly\
      \ contractual payment \n \ncontractual rate of interest in effect on the Note prior to the granting\
      \ of the SCRA relief \nrather than the temporarily SCRA reduced interest rate and related SCRA monthly\
      \ \npayment when calculating the Borrower’s current monthly housing expense-to-income \n \nIf a\
      \ Borrower has indicated that there are condominium/HOA or Cooperative Corporation \nassessments\
      \ (see Chapter 8801 for special Servicing requirements for Cooperative Share \nLoans), Condominium\
      \ Unit maintenance fees or Cooperative Unit Maintenance Fees, or \nground rents, but has not been\
      \ able to provide written documentation to verify these \n\n \n \n \n \n \nPage 9206-15 \namounts,\
      \ the Servicer must rely on the information provided by the Borrower if the \nServicer has made\
      \ reasonable efforts to obtain the amounts in writing. \n \npayments, payments due to holders of\
      \ subordinate liens, or projected escrow shortages. \n \nBased on the information provided by the\
      \ Servicer, Resolve will calculate the Borrower’s \nhousing-to-expense income ratio and determine\
      \ if it meets the imminent default \nrequirements under Business Rule 2. \n \n(vii) Imminent default\
      \ evaluation results \n \nIf Resolve determines the Borrower meets the requirements of business\
      \ rule 1 and meets \nthe requirements of either: (i) business rule 2, or (ii) business rule 3, the\
      \ Borrower is in \nimminent default. The Servicer must evaluate the Borrower for a Freddie Mac Flex\
      \ \nModification Trial Period Plan and no further analysis is required by the Servicer to \ndetermine\
      \ imminent default. \n \n(viii) General requirements and information \n \nIf Resolve determines\
      \ that a Borrower is in imminent default, the Servicer must continue \nevaluating the Borrower using\
      \ the applicable underwriting requirements outlined in \nChapter 9206 to determine if the Borrower\
      \ qualifies for a Freddie Mac Flex Modification. \n \n(f) Property valuation requirements for a\
      \ Freddie Mac Flex Modification \n \nBased on the information provided by the Servicer, Resolve\
      \ will determine the property value \nof each Mortgage under consideration for a Freddie Mac Flex\
      \ Modification. \n9206.2: Modification terms, trial period and conditions \nof a Freddie Mac Flex\
      \ Modification® (04/08/26) \n \n■ Determining the terms of a Freddie Mac Flex Modification® \n \n\
      ■ Trial Period Plan requirements \n \n■ Modified Mortgage conditions \n \n■ Other modification conditions\
      \ and requirements \n \n(a) Determining the terms of a Freddie Mac Flex Modification \n\n \n \n\
      \ \n \n \nPage 9206-16 \n \nBased on the information provided by the Servicer, Resolve® will determine\
      \ the terms of the \nFreddie Mac Flex Modification Trial Period Plan and, following the Trial Period\
      \ Plan, will \ndetermine the terms of the final modification agreement. \n \nNote: If the Borrower\
      \ has previously made partial prepayments of principal (curtailments) \nand the monthly principal\
      \ and interest installments were not recalculated in accordance with \nSection 8103.3(d), then the\
      \ remaining Mortgage term must be calculated using the premodification interest-bearing UPB and\
      \ the pre-modification principal and interest payment \namount. \n \nThe payment reduction target\
      \ is considered satisfied once: \n \n■ An incremental application of the steps to determine the\
      \ terms of a Freddie Mac Flex \nModification (i.e., interest rate application, Mortgage term extension,\
      \ principal \nforbearance) achieves a post-modified Principal and Interest Payment reduction amount\
      \ \nthat just surpasses but is as close to 20% as possible (e.g., 20.01%) \n \n■ The payment reduction\
      \ target is not considered satisfied if the payment reduction amount \nis less than or precisely\
      \ equal to 20% \n \nThe Servicer must apply the steps to determine the terms for the Freddie Mac\
      \ Flex \nModification incrementally until the payment reduction target is achieved or until the\
      \ steps \nare exhausted. The Servicer must offer the Freddie Mac Flex Modification if the modification\
      \ \nwill result in a post-modified Principal and Interest Payment amount that is less than or equal\
      \ \nto the pre-modified payment amount. Based on the information provided by the Servicer, \nResolve\
      \ will determine the terms of the Freddie Mac Flex Modification according to the \nfollowing steps:\
      \ \n \nDetermining the terms of a Freddie Mac Flex Modification \nSteps \nStep 1 \nCapitalize arrearages\
      \ \nCapitalize arrearages in accordance with the requirements of Section 9206.3(b). \nStep 2 \n\
      Establish the preliminary modification interest rate \nSet the preliminary modification interest\
      \ rate to a fixed rate based on the following \nrequirements using the interest rate in effect for\
      \ the periodic payment due in the \nmonth of the evaluation date. \nNote: This step is solely to\
      \ set the preliminary modification interest rate. Refer \nto step 3 for instructions on how to apply\
      \ interest rate relief pursuant to Freddie \nMac’s revised Freddie Mac Flex Modification waterfall\
      \ requirements. \n\n \n \n \n \n \nPage 9206-17 \n \nIf the existing Mortgage is: \n…then \nA fixed-rate\
      \ Mortgage (including \nARMs and Step-Rate Mortgages \nwith no additional interest rate \nadjustments\
      \ or steps scheduled) \nThe Servicer must use the existing interest \nrate. \nAn ARM or Step-Rate\
      \ Mortgage \nthat has not reached its final interest \nrate \nThe Servicer must set the preliminary\
      \ \nmodification interest rate to the greater of: \n■ The Freddie Mac modification interest \nrate\
      \ in effect and posted as of the date \nthe Servicer evaluates and determines \nthe Borrower is\
      \ eligible for a Trial \nPeriod Plan, or \n■ The current interest rate \nNote: If the Freddie Mac\
      \ modification \ninterest rate is greater than the maximum \nstep-rate/lifetime cap Note Rate, then\
      \ the \nServicer must set the modification rate to \nthe maximum step-rate/lifetime cap Note \n\
      Rate. \nStep 3 \nDetermining the Freddie Mac Flex Modification interest rate \nIf the post-modification\
      \ mark-to-market loan-to-value (MTMLTV) is \ngreater than or equal to 50% and \nThe preliminary\
      \ modification \ninterest rate is: \n…then \nGreater than Freddie Mac’s \nmodification interest\
      \ rate in effect \n \nThe Servicer must incrementally reduce \nthe interest rate in 0.125% increments\
      \ \nuntil the earlier of achieving: \n■ The payment reduction target, or \n■ The Freddie Mac modification\
      \ interest \nrate \nNote: If the incremental reduction rate of \n0.125% would cause the modification\
      \ \ninterest rate to fall below the posted \nmodification interest rate, the Servicer \nmust stop\
      \ at the Freddie Mac modification \ninterest rate. \n\n \n \n \n \n \nPage 9206-18 \nLess than or\
      \ equal to Freddie \nMac’s modification interest rate \nin effect \nThe Mortgage will retain the\
      \ preliminary \nmodification interest rate as the postmodification contractual interest rate. \n\
      If the post-modification MTMLTV is less than 50%, then the Borrower will \nretain the preliminary\
      \ modification interest rate as the post-modification \ncontractual interest rate. \nThe interest\
      \ rate used to calculate the Trial Period Plan payment must be the \nsame rate that will be used\
      \ to establish the terms of the modification agreement, \nand the Freddie Mac Flex Modification\
      \ must result in a fixed-rate Mortgage. \nStep 4 \nTerm extension \nIf the payment reduction target\
      \ has not been met after step 3, extend the remaining \nMortgage term in monthly increments, if\
      \ applicable, until the earlier of: \nA Mortgage term in which the payment reduction target is reached,\
      \ or \nA Mortgage term of 480 months from the modification effective date \nNote: If a Mortgage\
      \ has been subject to one or more previous principal \ncurtailments, this could result in a post-modified\
      \ maturity date that is earlier \nthan the pre-modified maturity date. \nStep 5 \nForbear principal\
      \ \nIf the payment reduction target has not been met after step 4 and the postmodification MTMLTV\
      \ ratio (which includes capitalized amounts) is greater than \n50%, forbear principal until the\
      \ earlier of achieving: \n■ The payment reduction target, \n■ A result of 30% of the post-capitalized\
      \ UPB (“the Forbearance Cap”), or \n■ An amount that would create a post-modification MTMLTV ratio\
      \ of 50% \nusing the interest-bearing UPB \nNote: Interest must not accrue on any principal forbearance.\
      \ Principal forbearance \nis payable upon the earliest of the maturity of the Mortgage loan modification,\
      \ \nsale or transfer of the property, refinance of the Mortgage loan or payoff of the \ninterest-bearing\
      \ UPB. \n \n(i) Determination of eligibility based on Trial Period payment \n \nFor a Freddie Mac\
      \ Flex Modification, the estimated monthly modified principal and \ninterest payment calculated\
      \ when the terms of the Trial Period Plan are determined must \ncomply with the applicable principal\
      \ and interest payment reduction requirements set \nforth in Section 9206.1(c). \n \n\n \n \n \n\
      \ \n \nPage 9206-19 \nIf the Borrower makes all Trial Period payments timely, the Servicer must\
      \ modify the \nMortgage, even if, due to variances between estimated capitalization amounts and\
      \ final \ncapitalization amounts, the Freddie Mac Flex Modification does not meet the applicable\
      \ \nrequirements above. When determining eligibility for a Trial Period Plan offer, the \nServicer\
      \ is responsible for ensuring that its estimate of the amounts to be capitalized \nincludes all\
      \ known amounts. \n \n(ii) Resolve \n \nServicers must use Resolve for all Mortgages for which Borrowers\
      \ are being evaluated \nfor a Trial Period Plan and modification under this chapter. Each Servicer\
      \ shall use \nResolve in accordance with (A) the requirements in this section, (B) the Payment \n\
      Deferral and other instructions provided in Resolve Online Help and any other \nDocumentation and\
      \ (C) any other applicable provisions of the Guide, including Sections \n2401.1 and 2404.2. \n \n\
      Resolve does not adjust its terms for compliance with State-specific laws relating to loan \nmodifications.\
      \ Servicers must review the terms of any Trail Period Plan or modification \nagreement created using\
      \ Resolve for compliance with applicable State laws and adjust the \nterms accordingly before transmitting\
      \ them to the Borrower. \n \nThe Servicer must access the Resolve application and submit all required\
      \ data for \nBorrowers under consideration for a Freddie Mac Flex Modification: \n \n■ For Borrowers\
      \ who are current or less than 60 days delinquent, the Servicer must \nenter the information required\
      \ for Resolve to make an imminent default determination \nin accordance with Section 9206.1(e) and\
      \ enter the Imminent Default Hardship \nreason, if applicable, into Resolve \n \n■ Upon successful\
      \ completion of the Trial Period, the Servicer must update the \nprincipal balance as of the Modification\
      \ Effective Date and any applicable fields to \nreflect the final amounts that must be capitalized\
      \ \n \nIf a Servicer is unable to complete a submission of a Trial Period Plan or modification \n\
      agreement via Resolve, the Servicer should contact Customer Service at 800-FREDDIE. \n \n(b) Trial\
      \ Period Plan requirements \n \nA Borrower who is evaluated and determined eligible for a Freddie\
      \ Mac Flex Modification \nmust enter into a Trial Period Plan under which the Borrower will be required\
      \ to remit three \nmonthly payments at the estimated post-modified payment amount. (See also Section\
      \ \n9206.2(b)(ii) for Trial Period extension requirements for Borrowers in bankruptcy.) \n \nThe\
      \ Servicer may utilize a processing month following the end of the Trial Period to \nfacilitate\
      \ processing of the modification agreement in accordance with Section 9206.4(a)(ii). \nA payment\
      \ is not required during the interim month. \n\n \n \n \n \n \nPage 9206-20 \n \n(i) Processing\
      \ the Trial Period Plan offer \n \nIf the Borrower qualifies for a modification, the Servicer must\
      \ offer the Borrower a Trial \nPeriod Plan. \n \n■ The Freddie Mac Flex Modification Trial Period\
      \ Plan Notice \n \nWithin five days of an evaluation decision, but no later than 30 days following\
      \ receipt \nof the complete Borrower Response Package, the Servicer must send the Borrower a \n\
      Borrower Evaluation Notice indicating the outcome of its decision. If the Borrower is \napproved\
      \ for a Freddie Mac Flex Modification, the Servicer must send the Borrower a \nFreddie Mac Flex\
      \ Modification Trial Period Plan Notice – Based on an Evaluation of \na Complete BRP. \n \nThe Freddie\
      \ Mac Flex Modification Trial Period Plan Notice communicates the \nqualification decision to the\
      \ Borrower and is included in Exhibit 93, Evaluation \nNotices. \n \n■ The Freddie Mac Flex Modification\
      \ Trial Period Plan Solicitation for offers \nunder Section 9206.1(c)(iii) \n \nIf the Borrower\
      \ who is eligible under Section 9206.1(c)(iii) is approved for an offer \nfor a Freddie Mac Flex\
      \ Modification, the Servicer must send the Borrower a Freddie \nMac Flex Modification Trial Period\
      \ Plan Solicitation Offer – Not Based on an \nEvaluation of a BRP with Exhibit 1191, Freddie Mac\
      \ Flex Modification® Solicitation \nCover Letter, or Exhibit 1191B, Freddie Mac Flex Modification®\
      \ Solicitation Cover \nLetter for Day 60 Rate Reset, as applicable, in accordance with the requirements\
      \ \ndescribed in Section 9102.5(a). If the Borrower is approved for a streamlined offer for \na\
      \ Freddie Mac Flex Modification due to an Eligible Disaster in accordance with the \nrequirements\
      \ of Section 9206.1(c)(v), the Servicer must send the Borrower the \nFreddie Mac Flex Modification\
      \ Trial Period Plan Solicitation Offer – Not Based on \nan Evaluation of a BRP, amended as set forth\
      \ in Exhibit 93 for Eligible Disasters, and \nExhibit 1191A, Freddie Mac Flex Modification® Post-Disaster\
      \ Forbearance \nSolicitation Cover Letter. \n \nThe Freddie Mac Flex Modification Trial Period Plan\
      \ Notice communicates the \nqualification decision to the Borrower and is included in Exhibit 93.\
      \ \n \n■ Special requirements for Mortgages with post-modification MTMLTV ratios \nless than 80%\
      \ \n \nIn addition to the requirements above, the Servicer must ensure the Trial Period Plan \n\
      Notice for a Borrower whose Mortgage has a post-modified MTMLTV ratio less than \n80% includes a\
      \ statement reminding the Borrower that once the Mortgage has been \n\n \n \n \n \n \nPage 9206-21\
      \ \nmodified, the Borrower can always pay more than the contractual payment without \npenalty if\
      \ he or she desires to pay down the debt faster. \n \n■ The Disaster Relief Modification Trial Period\
      \ Plan Notice \n \nIf the Borrower is approved for a Disaster Relief Modification in accordance\
      \ with the \nrequirements in Section 9203.4(i), the Servicer must send the Borrower a Disaster \n\
      Relief Modification Trial Period Plan Notice. \n \nThe Disaster Relief Modification Trial Period\
      \ Plan Notice communicates the \nqualification decision to the Borrower and is included in Exhibit\
      \ 93. \n \n■ Authorized changes to Trial Period Plan Notices \n \nThe Servicer may amend a Trial\
      \ Period Plan Notice as necessary to request any \nBorrower cash contribution the Borrower promises\
      \ to pay for expenses and \ndelinquent amounts not capitalized, if applicable. Servicers may also\
      \ amend a Trial \nPeriod Plan to condition the approval of the Mortgage modification on obtaining\
      \ any \nnecessary court and/or trustee approvals for Borrowers in bankruptcy and to address \nsituations\
      \ where a Borrower files for bankruptcy during the Trial Period. In addition, \nServicers must amend\
      \ the Trial Period Plan Notice as necessary to ensure compliance \nwith applicable laws, rules and\
      \ regulations. \n \nIf the Borrower previously received a Chapter 7 bankruptcy discharge but did\
      \ not \nreaffirm the Mortgage debt under applicable law, the Servicer must add the following \n\
      language to the Trial Period Plan Notice under the section “Additional Trial Period \nPlan Information\
      \ and Legal Notices:” \n \nIf you previously received a Chapter 7 bankruptcy discharge, but did\
      \ not \nreaffirm the mortgage debt under applicable law: \n \nYou agree that you were discharged\
      \ in a Chapter 7 bankruptcy proceeding \nsubsequent to the execution of the Loan Documents. Based\
      \ on this representation, \nLender agrees that you will not have personal liability on the debt\
      \ pursuant to this \nTrial Period Plan. \n \nIf under applicable law, a Servicer may not establish\
      \ an Escrow account, the Servicer \nmust delete the following language from the Trial Period Plan\
      \ Notice: \n \nPage 3: \n \nYour new monthly payment will include an escrow for property taxes,\
      \ hazard \ninsurance and other escrowed expenses. If the cost of your homeowners insurance, \nproperty\
      \ tax assessment or other escrowed expenses increases, your monthly payment \nwill increase as well.\
      \ \n \n\n \n \n \n \n \nPage 9206-22 \nPage 3: \n \nIf your monthly payment did not include escrows\
      \ for taxes and insurance, you \nare now required to do so: \n \nYou agree that any prior waiver\
      \ that allowed you to pay directly for taxes and \ninsurance is revoked. You agree to establish\
      \ an escrow account and to pay required \nescrows into that account. \n \n■ Effective Date of the\
      \ Trial Period Plan \n \nWhen preparing the Trial Period Plan Notice, the Servicer must determine\
      \ the Trial \nPeriod Plan Effective Date and the due date of the first Trial Period payment in \n\
      accordance with the following instructions: \n \nDetermining the Trial Period Plan Effective Date\
      \ and the due date \nof the first Trial Period payment \nIf the Servicer sends the Trial \nPeriod\
      \ Plan Notice to the \nBorrower: \n… then the Trial Period Plan \nEffective Date and the due date\
      \ of \nthe first Trial Period payment is: \nOn or before the 15th of the \nmonth \nThe first day\
      \ of the next month \nAfter the 15th of the month \nThe first day of the month after the \nnext\
      \ month \n \nExample: If the Servicer sends the Trial Period Plan to the Borrower on June 10, the\
      \ \nTrial Period Plan Effective Date and first Trial Period payment due dates are both \nJuly 1.\
      \ If the Servicer sends the Trial Period Plan to the Borrower on June 17, the \nTrial Period Plan\
      \ Effective Date and first Trial Period payment due date are both \nAugust 1. \n \nNotwithstanding\
      \ the requirement above, after the Trial Period Plan Notice was sent to \nthe Borrower, the Servicer\
      \ may commence the Trial Period on the first day of the next \nmonth if the Borrower consents to\
      \ commence the Trial Period earlier than the \neffective date requirements set forth above. \n \n\
      If the Borrower fails to submit the first Trial Period payment on or before the last day \nof the\
      \ first Trial Period month (e.g., on or before July 31st in the example above), the \nServicer must\
      \ consider the Trial Period Plan offer to be rejected by the Borrower. \n \n\n \n \n \n \n \nPage\
      \ 9206-23 \n■ Borrower acceptance of offer \n \nA Borrower’s notification to the Servicer indicating\
      \ an intent to accept a Trial Period \nPlan offer within 14 days of the date of the offer constitutes\
      \ sufficient notice solely \nfor purposes of suspending foreclosure referral or sale in accordance\
      \ with Sections \n9301.2(c), 9301.2(d) and 9301.7(a). \n \nFor purposes of legal acceptance, Borrowers\
      \ are not required to sign or return the \nTrial Period Plan Notice. Timely receipt of the first\
      \ payment due under the Trial \nPeriod Plan Notice is evidence of the Borrower’s acceptance of the\
      \ Trial Period Plan \nterms and conditions. The Servicer must receive the Borrower’s first Trial\
      \ Period \npayment on or before the last day of the month in which the Trial Period Plan \nEffective\
      \ Date occurs (Trial Period Plan Offer Deadline). Otherwise, the Servicer \nmust consider the Trial\
      \ Period Plan offer to have expired. \n \n(ii) Requirements during the Trial Period \n \nThe first\
      \ Trial Period payment is due by the Trial Period Plan Offer Deadline. The \nServicer must require\
      \ the Borrower to remit timely payments. Each Trial Period payment \nmust be received no later than\
      \ the last day of the month in which the Trial Period \npayment is due. Borrowers who fail to make\
      \ timely Trial Period payments are considered \nto have failed the Trial Period. Servicers must\
      \ use good business judgment in determining \nwhether Trial Period payments were received timely\
      \ or if mitigating circumstances \ncaused the payment to be late. Exceptions must be documented\
      \ in the Servicer’s records. \n \nAlthough the Borrower may make scheduled Trial Period payments\
      \ earlier than expected, \nthe payments may not result in acceleration of the Modification Effective\
      \ Date. \n \nDuring the Trial Period, the Servicer must: \n \n■ Continue to report to Freddie Mac\
      \ in accordance with the investor reporting \nrequirements set forth in the Guide, which include\
      \ the advancing of forecasted \nscheduled interest (and principal, if applicable) under the existing\
      \ Mortgage terms to \nFreddie Mac, provided that the Servicer has not inactivated the Mortgage \n\
      \ \n■ Credit to an unapplied or suspense funds account, payments made by the Borrower \nduring the\
      \ Trial Period. Once enough funds have accumulated in the unapplied or \nsuspense funds account\
      \ to satisfy the oldest payment due under the existing Mortgage \nterms (including applying the\
      \ portion of the Trial Period payment allocable to \nescrowed items to the existing or newly established\
      \ Escrow account provided those \namounts were due at the time of the oldest delinquent payment\
      \ due date), the Servicer \nmust apply the payment in accordance with the current Note and Security\
      \ Instrument, \nor prior modification agreement, if applicable. \n \n\n \n \n \n \n \nPage 9206-24\
      \ \n❑ Recommencement and/or initiation of collection efforts and foreclosure \nactions \n \nA Borrower\
      \ is considered to have failed a Trial Period Plan if the Borrower fails \n \n■ Make a Trial Period\
      \ payment by the last day of the month in which the \n \n■ Comply with the terms of the Trial Period\
      \ Plan \n \nIf the Borrower fails the Trial Period Plan because they did not meet the above \nrequirements,\
      \ the Servicer must begin or recommence collection efforts in \naccordance with Section 9102.4 or,\
      \ if applicable, recommence any suspended \nforeclosure action or proceeding. \n \nAdditionally,\
      \ the Servicer must cancel the plan if the Borrower does not execute \nand return the modification\
      \ agreement per the requirements set forth in Section \n9206.4(a), the Servicer must begin or recommence\
      \ collection efforts in \naccordance with Section 9102.4 or, if applicable, recommence any suspended\
      \ \nforeclosure action or proceeding. \n \nAfter determining a Borrower has failed or the Trial\
      \ Period was canceled \naccording to the requirements under this Section 9206.2(b)(ii), the Servicer\
      \ must \nreport any initiated or resumed collection or foreclosure activity through EDR. \nSee Section\
      \ 9102.6 for information on EDR. \n \nLate charges may accrue during the Trial Period subject to\
      \ the requirements of \nSection 9102.2. However, all accrued and unpaid late charges must be waived\
      \ in \nthe event the Mortgage is modified. \n \n❑ Changes to tax and insurance premium payments\
      \ \n \nIf there are changes in a Borrower’s tax and insurance premium payments after \nthe Borrower\
      \ has been qualified for a Trial Period Plan, the Servicer is not \nrequired to re-qualify the Borrower\
      \ based on the subsequent changes in taxes and \ninsurance. However, the Servicer should provide\
      \ written notice to the Borrower \nthat explains the impact of the new Escrow payment on the modification.\
      \ \n \n\n \n \n \n \n \nPage 9206-25 \n❑ Borrowers in Trial Period Plans \n \nIf a Borrower was\
      \ in a Trial Period Plan prior to entering into a forbearance plan, \nthe Borrower may be re-evaluated\
      \ for a new Trial Period Plan within 30 days \nprior to or upon completion of the forbearance plan.\
      \ Servicers must not resume or \nrestart the terms of the previous Trial Period Plan prior to the\
      \ start of the \nforbearance plan. Instead, the Servicer must evaluate the Borrower based on the\
      \ \nstatus of the Mortgage at the time of the new evaluation and, if the Borrower \nmeets all eligibility\
      \ requirements, the Servicer must send a new Trial Period Plan \noffer to commence on or after the\
      \ completion of the forbearance plan. \n \nFor any subsequent modification submissions, the Trial\
      \ Period Plan that the \nBorrower was in prior to the start of the forbearance plan will not be\
      \ considered a \nfailed Trial Period Plan for a Freddie Mac Flex Modification evaluation. \n \n\
      ❑ Borrowers filing for bankruptcy during the Trial Period \n \nBorrowers who are in a Trial Period\
      \ Plan and subsequently file for bankruptcy \nmay not be denied a modification on the basis of the\
      \ bankruptcy filing. The \nServicer and its counsel must work with the Borrower or Borrower’s counsel\
      \ to \nobtain any court and/or trustee approvals required in accordance with local court \nrules\
      \ and procedures. Servicers should extend the Trial Period Plan as necessary \nto accommodate delays\
      \ in obtaining court approvals or receiving a full remittance \nof the Borrower’s Trial Period payments\
      \ when they are made to a trustee, but they \nmust not extend the Trial Period beyond nine months,\
      \ resulting in a total 12month Trial Period. In the event of a Trial Period extension, the Borrower\
      \ must \nmake a Trial Period payment for each month of the Trial Period, including any \nextension\
      \ month, in order to remain eligible for a modification. See Section \n9206.2(d)(i) for information\
      \ on reporting an extended Trial Period Plan via EDR. \n \n❑ Chapter 13 bankruptcy \n \nWhen a Borrower\
      \ in an active Chapter 13 bankruptcy is in a Trial Period Plan and \nthe Borrower has made post-petition\
      \ payments on the Mortgage in the amount \nrequired by the Trial Period Plan, a Servicer must not\
      \ object to confirmation of a \nBorrower’s Chapter 13 plan, move for relief from the automatic bankruptcy\
      \ stay \nor move for dismissal of the Chapter 13 case on the basis that the Borrower paid \nonly\
      \ the amounts due under the Trial Period Plan, as opposed to the non-modified \nMortgage payments.\
      \ \n \n❑ Chapter 7 bankruptcy \n \nBorrowers who have received a Chapter 7 bankruptcy discharge\
      \ in a case \ninvolving the Mortgage and who did not reaffirm the Mortgage debt under \napplicable\
      \ law, are eligible for a modification. \n \n\n \n \n \n \n \nPage 9206-26 \n❑ Mortgages with temporary\
      \ subsidy buydown plans \n \nWhen processing the Trial Period Plan offer on a Mortgage with a temporary\
      \ \nsubsidy buydown plan, the Servicer must make the appropriate changes to the \napplicable evaluation\
      \ notice to reflect application of any buydown funds as a \ncondition of completing the Mortgage\
      \ modification, as applicable. See Section \n9206.3(b)(i) for information about temporary subsidy\
      \ buydown funds. \n \n \n(c) Modified Mortgage conditions \n \nThe Servicer must ensure that the\
      \ modified Mortgage: \n \n1. Retains its First Lien position and continues to be fully enforceable\
      \ in accordance with its \nterms at the time of modification, throughout its modified term, and\
      \ during any \nbankruptcy or foreclosure proceeding involving the Mortgage. The Servicer must record\
      \ \nthe modification agreement only when doing so is necessary to ensure its compliance \nwith this\
      \ First Lien retention and modification enforcement requirement. If recordation is \nnot immediately\
      \ necessary but may be required in the future to comply with this First \nLien retention and modification\
      \ enforcement requirement, the Servicer must have the \nmodification agreement in recordable form.\
      \ The modification agreement must be \nexecuted by the Borrower(s). \n \nNotwithstanding the foregoing,\
      \ the Servicer must: \n \n(a) Ensure the following are current, as applicable: property taxes ground\
      \ rents and \nassessments or other charges that, if delinquent, are or may become First Liens on\
      \ the \nproperty or that if not paid would result in the subordination of Freddie Mac’s \ninterests.\
      \ (See Section 9301.6(e) regarding expenses that may become First Liens on \nthe property.) \n \n\
      (b) Obtain a title endorsement or similar title insurance product issued by a title insurance \n\
      company prior to or at the time of the modification whenever it is necessary to record \nthe modification\
      \ agreement to retain the modified Mortgage’s First Lien position. For \nCooperative Share Loans\
      \ recognized as personal property, refer to Section \n8801.1(f)(i) regarding certain Servicer warranties\
      \ required in the event of a loan \n \n(c) Obtain subordination agreements from any junior lienholders,\
      \ if required by the title \n \n(d) Record the executed loan modification agreement, even if the\
      \ jurisdiction where the \nproperty is located does not require the Servicer to do so, whenever\
      \ recordation is \nnecessary to retain the modified Mortgage’s First Lien position if, in the future,\
      \ \nrecordation is necessary to enforce the terms of the modified Mortgage (e.g., preforeclosure)\
      \ or if it contains provisions related to the assignment of leases and rents. \n\n \n \n \n \n \n\
      Page 9206-27 \n \n2. Retains all living signers on the existing Note as obligors. Except as otherwise\
      \ provided \nin Section 9206.2(d)(v), all Borrowers and any other signatory to the Security Instrument\
      \ \nmust sign the modification agreement and all other required documents. \n \n3. Contains a due-on-transfer\
      \ provision if the existing Mortgage documents do not contain \nsuch a provision (see Exhibit 78,\
      \ Modification Due on Transfer Rider, for an example of \na due-on-transfer rider) \n \n4. Does\
      \ not have any secondary financing included in the UPB \n \n5. Does not provide any cash-out to\
      \ the Borrower \n \n6. Except as set forth in Section 9206.1(c)(v), has an Escrow account (see Chapter\
      \ 8201) \neven if the existing Mortgage does not have an Escrow account \n \n7. Retains mortgage\
      \ insurance coverage if the existing Mortgage has such coverage, and the \nloss coverage percentage\
      \ must remain the same \n \n8. Contains an assignment of rents rider if the property is a 1-unit\
      \ Investment Property or a \n2- to 4-unit property (see Exhibit 77 for an example of an assignment\
      \ of rents rider) \n \n9. Retains any existing credit enhancement, such as an indemnification agreement.\
      \ (Note: \nMortgages subject to recourse are not eligible for a Freddie Mac Flex Modification®.)\
      \ If \nthe Servicer is not the provider of the credit enhancement, it must obtain written approval\
      \ \nfrom the institution providing the enhancement. \n \n10. Contains a Modification Bankruptcy\
      \ Disclosure Rider for a Borrower who has been \ndischarged from the Freddie Mac debt (see Exhibit\
      \ 78A, Modification Bankruptcy \nDisclosure Rider, for an example of the rider) \n \n11. Is a fully\
      \ amortizing fixed-rate Mortgage. The Mortgage after modification must not be \nan interest-only\
      \ Mortgage, a bi-weekly Mortgage or a daily simple interest Mortgage. \n \n12. Has flood insurance\
      \ coverage if the property is located in an area that has been identified \nby the Director of the\
      \ Federal Emergency Management Agency (FEMA) as a Special \nFlood Hazard Area (SFHA). The Servicer\
      \ must determine if the area where the property \nis located has been identified as a SFHA. This\
      \ step must be taken even if the property \nwas not located in a SFHA when the Mortgage was originated.\
      \ If the property is located \nin a SFHA, then the Servicer must require that the Borrower purchase\
      \ flood insurance as \nrequired in Section 8202.2. \n \n(d) Other modification conditions and requirements\
      \ \n \n(i) EDR \n \n\n \n \n \n \n \nPage 9206-28 \nResolve automatically reports the below EDR\
      \ default action codes when applicable. \nServicers may, but are not required to, report specific\
      \ Freddie Mac Flex Modification \nactivity to Freddie Mac as follows: \n \n■ BF – “Standard Modification\
      \ Trial Period.” Report default action code BF to \nnotify Freddie Mac that the Borrower has entered\
      \ into a Trial Period for the Freddie \nMac Flex Modification. Servicers may report this code along\
      \ with the Trial Period \nPlan Effective Date each month during the Trial Period. In addition, Servicers\
      \ may \nreport this code if they elect to use the interim month option under the Trial Period \n\
      Plan or extend the Trial Period Plan to accommodate a Borrower’s bankruptcy filing. \nSee Section\
      \ 9206.4(a)(ii) for information on the interim month option and Section \n9206.2(b)(ii) for information\
      \ on extending a Borrower’s Trial Period Plan when the \nBorrower is in bankruptcy; or \n \n■ HD\
      \ – “Modification in Review.” Report default action code HD to notify Freddie \nMac that the Borrower\
      \ is being evaluated for a modification. Servicers may report \nthis code along with the date they\
      \ began reviewing the Borrower for the modification. \nReport this code one time in the month following\
      \ the month in which the evaluation \ntook place. \n \n■ HE – “Ineligible/Cancel Modification.”\
      \ Report default action code HE to notify \nFreddie Mac that the Borrower is ineligible for a modification\
      \ or the Trial Period has \nbeen canceled. Servicers may report this code along with the date they\
      \ made the \ndecision. Report this code one time in the month following the month in which the \n\
      decision took place. \n \n(ii) MI approval \n \nIf the Mortgage is subject to mortgage insurance\
      \ and approval and the Freddie Mac Flex \nModification is not covered by delegation agreement, then\
      \ the Servicer must obtain MI \napproval of a modification before offering the Borrower a Trial\
      \ Period Plan. \nAdditionally, if the Borrower cannot pay all amounts due plus the modification\
      \ expenses, \nthe Servicer must inquire if the MI will make an advance claim payment to pay all\
      \ or part \nof the amounts due. \n \n(iii)Servicing Spread \n \nUpon modification, the Servicing\
      \ Spread for Servicing a modified mortgage is equal to \nthe lesser of: \n \n■ The current Servicing\
      \ Spread on the modified Mortgage, or \n \n■ 25 basis points per annum multiplied by the interest-bearing\
      \ UPB. For Mortgages \nwith a partial principal forbearance, the Servicing Spread is based on the\
      \ interestbearing UPB. \n \n\n \n \n \n \n \nPage 9206-29 \n(iv) Escrows \n \nServicers must establish\
      \ an Escrow account on the Mortgage if an Escrow account is not \ncurrently maintained on the Mortgage,\
      \ provided its establishment is not prohibited under \napplicable federal, State or local law. \n\
      \ \nPrior to or during the Servicer’s determination of the Borrower’s eligibility for a \nmodification,\
      \ the Servicer must perform an Escrow analysis in accordance with the Real \nEstate Settlement Procedures\
      \ Act (RESPA) and any applicable federal, State or local law. \nThe Servicer must then establish\
      \ the Escrow account at the time the Trial Period Plan \nbecomes effective and provide any disclosures\
      \ required by applicable federal, State or \nlocal law within the time periods prescribed by such\
      \ laws. In addition: \n \n■ Any advances previously made by the Servicer or any advances that will\
      \ be made \nduring the Trial Period to pay property taxes or insurance premiums must be \ncapitalized\
      \ in the modified UPB as long as they were or will be paid to third parties \nprior to the Modification\
      \ Effective Date. \n \n■ For taxes and insurance premiums that are not yet due before the Modification\
      \ \nEffective Date, the Servicer must determine the amount needed to establish the \nescrow account\
      \ (Escrow shortage) that, together with the monthly Escrow payment \nincluded in the modified monthly\
      \ Mortgage payment, will be sufficient to pay all \nfuture taxes and insurance premiums when they\
      \ fall due. If the Borrower is unable to \npay the Escrow shortage as a lump sum payment, then the\
      \ Borrower must pay the \nshortage as part of the monthly payment on the modified Mortgage (“Project\
      \ Monthly \nEscrow Shortage Payments”) as set forth in Section 9206.3(b)(ii). This amount may \n\
      not be capitalized in the UPB of the Mortgage. \n \n■ Once the Escrow account is established, the\
      \ Borrower must continue to make \nmonthly Escrow payments, even if the Borrower fails to comply\
      \ with the Trial Period \nPlan and the Mortgage subsequently reinstates. \n \n(v) Execution of documents\
      \ \n \nThe Servicer must require all Borrowers and any other signatory to the Security \nInstrument\
      \ to sign the modification agreement and all other required documents to \nqualify for a modification\
      \ except the following: \n \n■ A Borrower, co-Borrower or any signatory to the Security Instrument\
      \ who is \ndeceased, as evidenced by a death certificate or an obituary or newspaper article \n\
      reporting the death \n \n■ A Borrower, co-Borrower or any signatory to the Security Instrument who\
      \ is divorced \nor legally separated from another party, as evidenced by a divorce decree signed\
      \ by \nthe court or court filed separation agreement, except for the Borrower or co-Borrower \n\
      retaining possession and title to the property \n\n \n \n \n \n \nPage 9206-30 \n \n■ A Borrower,\
      \ co-Borrower or any signatory to the Security Instrument who is \nunrelated by marriage, civil\
      \ union or similar domestic partnership under applicable \nlaw and who purchased or owned the property\
      \ and has since vacated and no longer \noccupies the property, provided the remaining Borrower submits\
      \ a copy of a recorded \nquit claim deed evidencing that the departed party has relinquished all\
      \ rights to the \nproperty; or \n \n■ Any signatory to a Security Instrument who is not a Borrower\
      \ obligated on the Note, \nprovided the Security Instrument contains a provision that authorizes\
      \ any Borrower to \nmodify the terms of the Security Instrument or the Note without such signatory’s\
      \ \nconsent \n \nServicers may evaluate requests on a case-by-case basis when the Borrower is unable\
      \ to \nsign due to circumstances such as mental incapacity, military deployment, etc. \n \nFor Mortgages\
      \ secured by a property owned by an eligible Living Trust all Freddie Mac \nFlex Modification-related\
      \ documents must be executed by the Borrower as follows: \n \n■ In his or her individual capacity;\
      \ and \n \n■ By the trustee on behalf of the Living Trust \n \n(vi) Texas Equity Section 50(a)(6)\
      \ Mortgages \n \nWhen the Mortgaged Premises is secured by a Texas Equity Section 50(a)(6) Mortgage:\
      \ \n \n■ If the Borrower is eligible and qualifies for a Trial Period Plan and/or modification,\
      \ \nthe Servicer must offer the Borrower a Trial Period Plan and/or modification in \naccordance\
      \ with Freddie Mac’s requirements in Chapters 9205 and 9206 \n \n■ If the Servicer receives Borrower\
      \ notification stating that the terms of the \nmodification agreement do not comply with the provisions\
      \ of Article XVI Section, \n50(a)(6) of the Texas Constitution, the Servicer must notify Freddie\
      \ Mac within seven \nBusiness Days of receipt of such objection or complaint via Freddie Mac Servicing\
      \ \nData Corrections and include the following: \n \n❑ Freddie Mac loan number \n \n❑ Servicer loan\
      \ number \n \n❑ Transaction type (i.e., Texas Home Equity modification) \n \n❑ Accounting Cycle\
      \ in which Freddie Mac settled the workout \n \n\n \n \n \n \n \nPage 9206-31 \n❑ Servicer’s analysis\
      \ (i.e., Borrower complaint related to Section 50(a)(6) of the \nTexas Constitution) \n \n■ Upon\
      \ receipt of Freddie Mac’s instructions, the Servicer must comply with any \nrequired response time\
      \ frames to claims of defects and any other complaint in \naccordance with Section 8104.1(a) and\
      \ the Texas Constitution \n9206.3: Loan modification expenses, capitalization \nand reimbursement\
      \ (04/08/26) \n \n■ Loan modification expenses \n \n■ Expenses, delinquent amounts, capitalization\
      \ rules and expense reimbursements for \nmodifications \n \n(a) Loan modification expenses \n \n\
      Subject to applicable law, loan modification expenses may include, but are not limited to: \n \n\
      1. Notary fees \n \n2. Recordation fees if they meet the requirements in Section 9206.2(c) \n \n\
      3. Title report according to the requirements of Section 9206.2(c). To reduce the expenses, \norder\
      \ any required title report from a vendor that is an agent of the current title insurer, \nwhen\
      \ possible. \n \n4. Updated title endorsement or a new title insurance policy according to the requirements\
      \ \nof Section 9206.2(c) \n \n5. Legal and settlement fees \n \n6. Property inspection \n \nThe\
      \ Servicer may not charge the Borrower any processing fee or other administrative fee in \nconnection\
      \ with the processing of a loan modification. \n \nIf the Servicer does not modify the Mortgage,\
      \ the Servicer must refund to the Borrower all \nprepaid but unused expense funds. \n \n(b) Expenses,\
      \ delinquent amounts, capitalization rules and expense reimbursements for \nmodifications \n\n \n\
      \ \n \n \n \nPage 9206-32 \n \n(i) Expenses and delinquent amounts \n \nWhenever possible, the Borrower\
      \ must pay, subject to applicable federal, State and local \nlaw and the Mortgage, the following\
      \ expenses and delinquent amounts in the form of a \ncash contribution as a condition of the modification:\
      \ \n \n■ Delinquent accrued interest \n \n■ Expenses paid to a third party specifically related\
      \ to the loan modification (e.g., title \ncosts, not to exceed the reimbursable expense limits in\
      \ Exhibit 57A, Approved \nAttorney, Foreclosure, Mediation, Postponement Fees and Title Expenses;\
      \ notary \nfees; recordation fees, if applicable; and credit report fees) \n \n■ Funds advanced\
      \ by the Servicer, or to be advanced and paid to a third party, prior to \nthe date the Borrower\
      \ executes the loan modification agreement for the payment of \nany property taxes and property\
      \ and mortgage insurance premiums \n \n■ Incurred foreclosure costs, including attorney fees and\
      \ title costs incurred as part of \nthe foreclosure process, not to exceed the reimbursable expense\
      \ limits in Exhibit 57A \n \n■ Property preservation expenses and property inspection fees, not\
      \ to exceed the \nreimbursable limits in Exhibit 57, 1- to 4-Unit Property Approved Expense Amounts,\
      \ \nand further subject to limitations on the amount or frequency of inspections under \napplicable\
      \ federal, State or local law \n \n■ Any other expenses that were advanced and paid to a third party\
      \ related to the \npreservation of Freddie Mac’s lien priority, as specified in Sections 9301.6(e)\
      \ and \n9701.2(e) \n \n■ Escrow shortages (i.e., the amount needed to establish the Escrow account\
      \ or to bring \nit current that, together with the monthly Escrow payment included in the monthly\
      \ \nMortgage payment, will be sufficient to pay the next twelve months of property taxes, \nproperty\
      \ and mortgage insurance premiums, etc., when they fall due) \n \n■ Any other amounts due and owing\
      \ that are secured indebtedness under the current \n \nThe Borrower must contribute funds held in\
      \ a buydown account, if any, to reduce the \nDelinquency or amount capitalized unless otherwise\
      \ prohibited in the buydown \n \nAt the end of a Trial Period Plan, if amounts held in a suspense\
      \ funds account per the \nrequirements in Section 9206.2(b)(ii) are in excess of the total amount\
      \ of arrearages and \nexpenses and remain unapplied, those funds must be applied to reduce the postcapitalized\
      \ UPB. \n\n \n \n \n \n \nPage 9206-33 \n \nThe Servicer may not charge the Borrower or capitalize\
      \ any processing fee or other \nadministrative fees in connection with the processing of a loan\
      \ modification. \n \n(ii) Capitalization rules \n \nIf the Borrower has inadequate cash reserves\
      \ or assets that he or she cannot liquidate to \npay all of the expenses and delinquent amounts\
      \ in the form of a cash contribution under \nSection 9206.3(b)(i), any cash contribution the Borrower\
      \ is able to make must be applied \nto expenses and amounts that may be capitalized. \n \nGenerally,\
      \ a Borrower is expected to pay all expenses and other amounts due. If the \nMortgage has mortgage\
      \ insurance, the Servicer must contact the MI prior to capitalizing \nany amounts to determine if\
      \ the MI will pay all or a portion of the expenses and \ndelinquent amounts due. \n \nThe Servicer\
      \ may capitalize any expense or delinquent amount set forth in the table \nbelow provided that such\
      \ capitalization is not prohibited by applicable federal, State or \nlocal law, the amount to be\
      \ capitalized is part of the indebtedness secured by the current \nMortgage, and the expense complies\
      \ with Exhibits 57 and 57A. \n \nExpenses or delinquent amount that can be capitalized \nExpense\
      \ or delinquent amount \n \nMay be capitalized \n(if part of the secured \nindebtedness and subject\
      \ \nto applicable law) \nDelinquent accrued interest \nExpenses paid to a third party specifically\
      \ related \nto the loan modification (e.g., title costs; notary \nfees; recordation fees, if applicable;\
      \ and credit \nreport fees) \nFunds advanced by the Servicer, or to be \nadvanced and paid to a\
      \ third party, prior to the \ndate the Borrower executes the loan modification \nagreement for the\
      \ payment of any property taxes \nand property and mortgage insurance premiums \nEscrow shortages\
      \ to fund an Escrow account for \nfuture post-modification advances \n\n \n \n \n \n \nPage 9206-34\
      \ \nExpenses or delinquent amount that can be capitalized \nExpense or delinquent amount \n \nMay\
      \ be capitalized \n(if part of the secured \nindebtedness and subject \nto applicable law) \nIncurred\
      \ foreclosure costs, including attorney fees \nand title costs incurred as part of the foreclosure\
      \ \nYes (not to exceed the \nreimbursable expense limits \nin Exhibit 57A) \nProperty preservation\
      \ expenses and property \ninspection fees \nYes (not to exceed the \nreimbursable limits in \nExhibit\
      \ 57) \nAny other expenses that were advanced and paid \nto a third party related to the preservation\
      \ of \nFreddie Mac’s lien priority, as specified in \nSections 9301.6(e) and 9701.2(e) \n \nWith\
      \ respect to Escrow shortages, if the Borrower is unable to pay the Escrow shortage \nas a lump\
      \ sum, then the Borrower must pay the shortage as part of the monthly payment \n(“Projected Monthly\
      \ Escrow Shortage Payments”) on the modified Mortgage. If the \nBorrower must pay Projected Monthly\
      \ Escrow Shortage Payments, then the Servicer \n \nover a period of 60 months, unless the Borrower\
      \ chooses to pay off the shortage as a \nlump sum or over a shorter period of time, not to be less\
      \ than 12 months \n \n \n(iii)Reimbursement of expenses \n \nServicers may use the PAID (Payments\
      \ Automated Intelligent and Dynamic) (see Exhibit \n88, Servicing Tools) to request reimbursement\
      \ for the following mortgage modification \nexpenses associated with all modification types that\
      \ would otherwise be paid by the \nBorrower and that may not be capitalized: \n \n\n \n \n \n \n\
      \ \nPage 9206-35 \nReimbursement expense code, limit and notes \nTitle costs, if \n(except with\
      \ respect \nto title costs in \nconnection with a \nproceeding) \nReimbursable amounts are in accordance\
      \ \nwith the limits specified in Exhibit 57A \n \nAdditionally, Freddie Mac will reimburse certain\
      \ expenses (e.g., legal fees and/or legal \ncosts) considered unrecoverable from the Borrower under\
      \ applicable federal, State or \nlocal law upon completion of a mortgage modification in accordance\
      \ with Section \n9701.1(e)(iv). \n \nAll reimbursement requests must be received by Freddie Mac\
      \ in accordance with Section \n9701.1(e)(i). If the Servicer submits a reimbursement request for\
      \ Mortgage modification \nexpenses and the Mortgage modification settlement date does not exist\
      \ in Freddie Mac’s \nsystems, the expense request will not be eligible for payment. All modification\
      \ types, \nexcluding modifications with Mortgages insured by the FHA or guaranteed by the VA or\
      \ \nRHS, must have been submitted to Freddie Mac for settlement in its systems to be \neligible\
      \ for expense reimbursement via PAID. \n \nFor modifications with Mortgages insured by the FHA or\
      \ guaranteed by the VA or RHS, \nrefer to Section 9701.1(e)(i) for requirements related to expense\
      \ submission time frames. \n9206.4: Settling, reporting and data submission for \nloan modification\
      \ (04/08/26) \n \n■ Preparing to settle the loan modification \n \n■ Loan modification documents\
      \ and settlement data submissions \n \n■ Modification reporting and drafting requirements \n \n\n\
      \ \n \n \n \n \nPage 9206-36 \n■ Electronic solicitation and modification \n \n(a) Preparing to\
      \ settle the loan modification \n \nThe Servicer should allow sufficient processing time to prepare\
      \ the modification agreement \nand provide it to the Borrower for execution, so that the Borrower\
      \ has sufficient time to \nreturn it to the Servicer and make the first modified payment by its\
      \ due date. The first \nmodified payment due date is the first day of the month following the final\
      \ Trial Period \nmonth, or, if applicable, the first day of the month following a processing month.\
      \ \n \n(i) Preparing the modification agreement and providing it to the Borrower \n \n \n1. Prepare\
      \ an original modification agreement for the Borrower’s signature (see Exhibit \n76, Loan Modification\
      \ for Delinquent Mortgages, for an example of a modification \nagreement and Exhibit 76A, Authorized\
      \ Changes to Exhibit 76, Loan Modification \nfor Delinquent Mortgages, for authorized changes to\
      \ Exhibit 76) \n \nThe modification agreement: \n \n■ Must be revised as necessary to conform with\
      \ federal, State and local law and the \nterms of the modification \n \n■ Must not include any language\
      \ that requires the Borrower to waive rights he or \nshe may have under applicable law, including\
      \ the Consumer Credit Protection \nAct, as a condition of the modification \n \n■ Must have a Modification\
      \ Effective Date and a due date of the first payment due \nafter the Trial Period (the “First Modified\
      \ Payment”) of the first day of the month \nfollowing the end of the Trial Period, or, if applicable,\
      \ the first day of the month \nfollowing the end of the processing month \n \n■ Must be in recordable\
      \ form in the following circumstances: \n \n❑ If State or local law requires the modification agreement\
      \ be recorded to be \nenforceable \n \n❑ If the Mortgage is secured by property located in New York\
      \ \n \n❑ If the modification agreement must be recorded pursuant to Section \n9206.2(c)(1)(d), or\
      \ \n \n❑ If the Servicer’s practice for modifying Mortgages in its portfolio is to create \nmodification\
      \ agreements in recordable form \n \n\n \n \n \n \n \nPage 9206-37 \nThe new interest rate and new\
      \ principal balance on the modified Mortgage are \neffective retroactive to the first day of the\
      \ month just prior to the First Modified \nPayment due date (i.e., to allow for payment of interest\
      \ in arrears). (See below for \ninformation on the “processing month option”.) \n \n2. Deliver to\
      \ the Borrower an unsigned copy of the modification agreement, together \nwith any applicable riders\
      \ and disclosures, and provide a date by which the Borrower \nmust sign and return the executed\
      \ modification agreements (and applicable riders and \ndisclosures) \n \n3. Once the Borrower has\
      \ signed the modification agreement and made the last required \nmonthly payment due during the\
      \ Trial Period and the Servicer determines the \nBorrower otherwise remains in compliance with the\
      \ terms of the Trial Period Plan, \nthe Servicer must sign the modification agreement and return\
      \ a copy with all \nsignatures to the Borrower in order for the modification to take effect. The\
      \ Servicer \nmay not sign the modification agreement until the Borrower has signed the \nmodification\
      \ agreement and complied with all requirements of the Trial Period Plan. \n \nNote: While the Servicer\
      \ is required to provide a date by which the modification \nagreement must be signed and returned,\
      \ provided the Servicer receives the executed \nagreement by the Modification Effective Date, the\
      \ modification will take effect. \n \n4. Prepare an assignment of rents rider, if applicable (see\
      \ Section 9206.2(c)) \n \n5. Prepare a due-on-transfer rider, if applicable (see Section 9206.2(c))\
      \ \n \n6. Prepare a Modification Bankruptcy Disclosure Rider, if applicable (see Section \n9206.2(c))\
      \ \n \n7. Prepare any documents necessary to modify the Mortgage, including applicable \ndisclosure\
      \ statements \n \n8. Arrange to obtain a title endorsement or similar title insurance product, if\
      \ applicable. \nRefer to Section 9206.2(c) for specific information. \n \n(ii) Processing month\
      \ option \n \nIn the event the Borrower does not pay the final Trial Period payment on or before\
      \ the \ndue date set forth in the Trial Period Plan Notice, then the Servicer may, at its option,\
      \ \nprepare the modification agreement such that the Modification Effective Date and the due \n\
      date of the First Modified Payment is the first day of the second month following the \nfinal Trial\
      \ Period month. However, in this case, interest will not begin to accrue at the \nmodified interest\
      \ rate on the modified principal balance until the first day of the month \nfollowing the final\
      \ Trial Period month to accommodate the First Modified Payment’s \npayment of interest in arrears\
      \ (“processing month option”). \n \n\n \n \n \n \n \nPage 9206-38 \nExample: If the final Trial\
      \ Period payment is due March 1 and the Servicer elects the \noption described above, the Borrower\
      \ is not required to make any payment during April, \nand the First Modified Payment under the modification\
      \ agreement is due on May 1. \nDuring the month of March, interest will accrue at the current pre-modification\
      \ rate under \nthe current loan documents, which may impact the amount of the modified principal\
      \ \nbalance. The modified interest rate and the modified principal balance will take effect on \n\
      April 1. The First Modified Payment due on May 1 will include interest in arrears that \naccrued\
      \ during April on the modified principal balance at the modified interest rate. \n \nIf the Servicer\
      \ elects this option, the Borrower will not be required to make an additional \nTrial Period payment\
      \ during the month (the “processing month”) between the final Trial \nPeriod month and the month\
      \ in which the First Modified Payment is due. \n \nA Servicer must treat all Borrowers the same\
      \ in applying this option by selecting, in its \ndiscretion and evidenced by a written policy, the\
      \ date by which the final Trial Period \npayment must be submitted (“cutoff date”) before the Servicer\
      \ applies this option. The \ncutoff date must be after the due date for the final Trial Period payment\
      \ as set forth in the \nTrial Period Plan Notice. \n \nIn the event the Borrower does not submit\
      \ funds during the processing month, the effects \nof the processing month and attendant capitalization\
      \ of arrearages on the terms of the \nmodification agreement may not alter the Servicer’s previous\
      \ determination of the \nBorrower’s eligibility. \n \nThe Servicer, when sending the modification\
      \ agreement for signature, must include a \ncover letter that informs the Borrower of: \n \n■ The\
      \ delay of the Modification Effective Date and First Modified Payment due date by \none month, and\
      \ \n \n■ The effects of the processing month, including, but not limited to, the delay in the \n\
      effective date of the modified interest rate, any increase in the delinquent interest \ncapitalized\
      \ \n \nEDR reporting requirements \n \nIf the Servicer elects to use the processing month option\
      \ in accordance with the \nrequirements under this Section 9206.4(a)(ii), the Servicer may report\
      \ the interim month \nto Freddie Mac through EDR. In doing so, the Servicer may report default action\
      \ codes \n“BF” under the Freddie Mac Flex Modification® Trial Period Plan. In addition, the \nServicer\
      \ must also report the Trial Period Plan Effective Date as the default action date \nuntil the default\
      \ action codes would no longer apply once the Mortgage is modified. \nRefer to Section 9206.2(d)\
      \ for information on Resolve® reporting of default action code \nBF. \n \n\n \n \n \n \n \nPage\
      \ 9206-39 \nNote: Refer to Section 9102.6 for information on EDR and Exhibit 82, Electronic Default\
      \ \nReporting Transmission Code List, for descriptions of the default action codes and \ndefault\
      \ reason codes. \n \nMortgages with temporary subsidy buydown plans \n \nWhen preparing and sending\
      \ the modification agreement to the Borrower in accordance \nwith Section 9206.4(a) on a Mortgage\
      \ with a temporary subsidy buydown plan, the \nServicer must make the appropriate changes as necessary\
      \ to reflect application of any \nbuydown funds as a condition of completing the Mortgage modification,\
      \ as applicable. \n \n(b) Loan modification documents and settlement data submissions \n \nAfter\
      \ the Servicer has sent a copy of the fully executed modification agreement to the \nBorrower as\
      \ required by Section 9206.4(a)(i), the Servicer must comply with the following \n \n■ If the modification\
      \ agreement must be recorded (see Sections 9206.2(c) and 9206.4(a)), \nthe Servicer must: \n \n\
      ❑ Submit the fully executed original modification agreement for recordation within five \nBusiness\
      \ Days of receiving either the Borrower executed modification agreement or \nthe final Trial Period\
      \ payment, whichever is later. (See Section 1401.3(d) for \nrequirements pertaining to Electronic\
      \ recording of paper post-closing documents.) \n \n❑ If the original Security Instrument was registered\
      \ with MERS®, execute the \nmodification agreement on behalf of MERS \n \n❑ Within 25 days of receiving\
      \ the executed modification agreement from the Borrower: \n \n■ If the modification agreement will\
      \ not be electronically recorded, send a certified \ncopy of the fully executed modification agreement\
      \ to the Document Custodian to \nbe maintained with the Note \n \n■ If the modification agreement\
      \ will be electronically recorded, send the fully \nexecuted modification agreement to the Document\
      \ Custodian to be maintained \nwith the Note. (See Section 1401.3(d) for requirements pertaining\
      \ to Electronic \nrecording of paper post-closing documents and related delivery requirements to\
      \ \nthe Document Custodian or Designated Custodian, as applicable.) \n \n❑ Send the modification\
      \ agreement that is returned from the recorder’s office to the \nDocument Custodian within five\
      \ Business Days of receiving it. (See Section \n1401.3(d) for requirements pertaining to Electronic\
      \ recording of paper post-closing \ndocuments and related delivery requirements to the Document\
      \ Custodian or \nDesignated Custodian, as applicable.) For eMortgages, if the modification agreement\
      \ \nis electronically recorded, deliver an electronic copy of the recorded modification \n\n \n\
      \ \n \n \n \nPage 9206-40 \nagreement to the eNote custodian’s eVault, using MERS eDelivery, within\
      \ five \nBusiness Days of receipt from the recording office. \n \n❑ If recordation is not required,\
      \ send the fully executed modification agreement to the \nDocument Custodian within 25 days after\
      \ receiving it from the Borrower \n \n❑ Retain a copy of the fully executed modification agreement\
      \ in the Mortgage file. (See \nSection 1401.3(d) for requirements pertaining to Electronic recording\
      \ of paper postclosing documents and related modification storage requirements by the Servicer in\
      \ \nthe Mortgage file.) \n \n■ Per Section 1402.5(c)(i), the Servicer must update the MERS® eRegistry\
      \ (as defined in \nSection 1402.1(b)) to provide notice of the modification agreement upon a modification\
      \ \nof an eMortgage (as defined in Section 1402.1(b)) \n \n■ Complete the “Settlement Request” screen\
      \ in Resolve and transmit the status for all \nMortgages due for settlement into Resolve no later\
      \ than the fourth Business Day of the \nmonth in which the first modified payment is due. When submitting\
      \ the data for a \nmodification via the “Settlement Request” screen, the Servicer must comply with\
      \ the \ninstructions for each Freddie Mac modification offer set forth in Resolve Online Help. \n\
      \ \nBefore completing the “Settlement Request” screen and submitting the modification \nterms via\
      \ the “Loan Modification Settlement” screen in Resolve, the Servicer must \nensure all data entered\
      \ are complete and correct, including, but not limited to: \n \n❑ The “Current UPB (pre-modification)”\
      \ and the DDLPI entered on the “Loan \nModification Settlement” screen matches the UPB and DDLPI\
      \ reported to Freddie \nMac as of the end of the last Accounting Cycle in the month prior to the\
      \ first \nmodified payment due date, and \n \n❑ The data entered on the “Settlement Request” screen\
      \ matches the terms of the \nmodification agreement and those terms comply with the requirements\
      \ applicable to \nthe modification \n \nIn its sole discretion, Freddie Mac may choose not to accept\
      \ for settlement any \nmodification and data related to such modification undertaken by the Servicer\
      \ where \nrequired settlement documentation is not provided in accordance with the time frame \n\
      set forth above or that otherwise does not comply with the underwriting requirements \nof the Guide\
      \ or other applicable Purchase Documents. If Freddie Mac does accept a \nmodification for settlement,\
      \ such acceptance does not waive any rights Freddie Mac \nmay have available under the Guide or\
      \ other applicable Purchase Documents \nincluding, without limitation, the right to withhold workout\
      \ compensation for any \nmodifications undertaken by the Servicer where required settlement documentation\
      \ or \naccurate settlement data is not provided in accordance with the time frame set forth \nabove\
      \ or the terms of the modification do not comply with the underwriting \nrequirements of the Guide\
      \ or other applicable Purchase Documents. \n\n \n \n \n \n \nPage 9206-41 \n \nOnce the data entered\
      \ onto the “Settlement Request” screen has been submitted to \nFreddie Mac, Servicers should monitor\
      \ the Modification Pending Update report, \naccessible via the “Modifications” tile of the Servicer’s\
      \ Servicer Performance Profile \n(SPP). (See Exhibit 88, Servicing Tools.) All Mortgages that are\
      \ scheduled to be \nprocessed in Freddie Mac’s systems will appear on this report in the SPP. \n\
      \ \nIn addition, Freddie Mac will notify Servicers that the modification has been \nprocessed in\
      \ Freddie Mac’s systems via the Modification Status Overview report in \nthe SPP. If a Servicer\
      \ attempts to report a monthly loan-level transaction on a \nMortgage based on the modified terms\
      \ prior to the modification being processed in \nFreddie Mac’s systems, the Servicer will not be\
      \ able to successfully complete the \n \n■ Comply with the reporting requirements set forth in Section\
      \ 9206.4(c) to complete the \nloan modification. Freddie Mac will enter a credit for its proportionate\
      \ share of the \ncapitalized amount, if applicable, on the Adjustment line of the Servicer’s Monthly\
      \ \nAccount Statement (MAS) plus an adjustment for any miscellaneous interest, if \n \n(c) Modification\
      \ reporting and drafting requirements \n \nFreddie Mac will process and settle Mortgage modifications\
      \ daily, except on the first \nBusiness Day of the month, and notify the Servicer through the Loan\
      \ Modification Status \nReport when a loan modification has settled. During settlement, Freddie\
      \ Mac will update the \nDDLPI to be the Modification Effective Date. \n \nThe Servicer must comply\
      \ with the following reporting requirements: \n \n(i) Before the first modified payment is due \n\
      \ \nThe Servicer must report in accordance with the Note and Security Instrument, and any \nmodification\
      \ agreement, if applicable. In doing so, the Servicer must report to Freddie \nMac as follows: \n\
      \ \n \nModification reporting requirements \nIf the Mortgage modification was \nsettled in the current\
      \ Accounting \nCycle…. \nThen the Servicer must…. \nWith the first modified payment due in \nthe\
      \ following month \nReport the next month’s forecasted \nscheduled interest based on the \nmodified\
      \ terms in the current Accounting \n\n \n \n \n \n \nPage 9206-42 \nModification reporting requirements\
      \ \nIf the Mortgage modification was \nsettled in the current Accounting \nCycle…. \nThen the Servicer\
      \ must…. \nWith the first modified payment due in \nthe current month \nReport the principal and\
      \ forecasted \nscheduled interest based on the newly \nmodified terms in the current Accounting\
      \ \nNote: If the Mortgage modification settles \nafter the P&I Determination Date and the \nServicer\
      \ does not report the modified loan \ndata, Freddie Mac will simulate the loan \nAnd the Modification\
      \ Effective Date is \nin a past Accounting Cycle, the \nMortgage will remain inactive after the\
      \ \nmortgage modification \nComplete a full reinstatement. Refer to \nSection 8303.3(j)(i) for reporting\
      \ the \ncorresponding payment and DDLPI date \nchange. (The DDLPI would change to the \nsame date\
      \ as the Modification Effective \nDate.) \n \nIf a Trial Period Payment is received in the same\
      \ month that Freddie Mac settles the \nMortgage modification and the pre-modified UPB is equal to\
      \ the UPB reported in the \ncurrent Accounting Cycle, the Trial Period Payment will be applied as\
      \ a miscellaneous \nprincipal adjustment. \n \n(ii) After the modification has been executed \n\
      \ \nOnce the modification has been executed, the Servicer must update their Mortgage \nrecords to\
      \ reflect the modified terms. \n \nIn the next monthly Accounting Cycle after the effective date\
      \ of the modification, the \nServicer must report to Freddie Mac as follows: \n \n1. Report the\
      \ Mortgage in its Loan-Level Transaction using the modified terms and \nreport any payments received\
      \ after the modification agreement has been executed. If \nthe modified Mortgage includes capitalized\
      \ amounts, then the UPB field must reflect \nthe modified UPB amount. Freddie Mac will enter a credit\
      \ for its proportionate share \nof the capitalized amount, if applicable, on the Adjustment Line\
      \ of the Servicer’s \nMAS. \n \n2. On the P&I Draft Date, Freddie Mac will draft all modified principal\
      \ and interest \npayments to Freddie Mac. The Servicer must update its Mortgage records to reflect\
      \ \n\n \n \n \n \n \nPage 9206-43 \nthe modified terms of the Mortgage as soon as the modification\
      \ agreement has been \nexecuted. \n \n(iii) Drafting \n \nFreddie Mac will draft principal and interest\
      \ payments in accordance with Section \n8303.1(c)(ii). Adjustments for loan modification capitalized\
      \ interest, miscellaneous \nprincipal, miscellaneous interest or reinstatement interest, if applicable,\
      \ will be posted to \nthe Draft Report in the month the loan modification settles on or before the\
      \ P&I \nDetermination Date. If the Loan Modification settles after the P&I Determination Date, \n\
      these adjustments will be posted to the following month’s Draft Report. \n \n(iv) Postsettlement\
      \ discrepancies \n \nThe Servicer must report any postsettlement discrepancies to Freddie Mac via\
      \ the Freddie \nMac Servicing Data Corrections tool (see Exhibit 88, Servicing Tools) within 30\
      \ calendar \ndays following the close of Freddie Mac’s Accounting Cycle in which the settlement\
      \ \noccurred. \n \nWhen submitting a request to correct a postsettlement discrepancy, Servicers\
      \ must upload \nthe executed modification agreement or court documents to support the requested\
      \ change \nin the Servicing Data Corrections tool and explain why the modification was not initially\
      \ \nsettled with data elements matching these documents. \n \nFreddie Mac may assess a contract\
      \ noncompliance and contract change compensatory \nfee. (See Section 8303.5(i) for any postsettlement\
      \ discrepancies submitted more than 60 \ncalendar days after the close of Freddie Mac’s Accounting\
      \ Cycle in which the settlement \noccurred.) Additionally, in the event the modification agreement\
      \ did not comply with \nFreddie Mac’s requirements, Freddie Mac may pursue available remedies depending\
      \ on \nthe nature of the modification violation, including, but not limited to, a repurchase \n\
      demand, repurchase alternative and/or recovery of any workout incentives that were paid. \n \nNote:\
      \ Refer to Section 8303.2(a) for specific reporting requirements for Mortgages with \npartial principal\
      \ forbearance. \n \n(d) Electronic solicitation and modification \n \n \nFor purposes of this section:\
      \ \n \nDefined terms pertaining to electronic solicitation and modification \n\n \n \n \n \n \n\
      Page 9206-44 \nAs applicable to eModification Agreements, in addition to the \ndefinition contained\
      \ in the Glossary, a person defined as a consumer \nunder E-SIGN, to the extent E-SIGN applies to\
      \ a transaction. For the \npurposes of this section, “Borrower” also includes any and all persons\
      \ \nobligated under the terms of any applicable Note as the context shall \npermit or require. \n\
      optical, electromagnetic, or similar capabilities, as defined in the \n“UETA” and/or “E-SIGN”. \n\
      associated with, a contract or other “Record” and executed or adopted \nby a person with the intent\
      \ to sign the “Record,” as defined in the \n“UETA” and/or “E-SIGN”. \nrelating to the conduct of\
      \ business, commercial, or governmental \naffairs, using “Electronic” means, as defined in the “UETA”\
      \ and/or \n“E-SIGN”. \nan agreement that is an Electronic Record that complies with the \napplicable\
      \ modification requirements of the Guide and includes, with \nrespect to paper Notes, Electronic\
      \ modification agreements and \nElectronic assumption and release of liability agreements \nunder\
      \ Chapters 9206 and 8406, respectively. \nAn Electronic Record that would be a promissory note if\
      \ it was issued \nin paper, and that the Borrower has agreed to issue it as a Transferable \nThe\
      \ federal Electronic Signatures in Global and National Commerce \nAct (15 U.S. Code, Chapter 96).\
      \ \neStorage \nAn Electronic computer storage system for storing Electronic \nMortgage File Documents\
      \ safely, securely, confidentially in \naccordance with the Guide and other Purchase Documents.\
      \ \neVault \nAn Electronic storage system that uses computer hardware and \nsoftware to store and\
      \ maintain eNotes and other Electronic Records. \nInformation that is inscribed on a tangible medium\
      \ or that is stored in \nan electronic or other medium and is retrievable in perceivable form \n\
      \n \n \n \n \n \nPage 9206-45 \nas defined in the “UETA” and/or “E-SIGN.” A Record may be a \npaper\
      \ or an “Electronic” document. \nThe Uniform Electronic Transactions Act of 1999, promulgated by\
      \ \nthe U.S. Uniform Law Commission for consideration and enactment \nby the States. Reference to\
      \ the UETA herein, means the UETA as \npromulgated by the U.S. Uniform Law Commission or the UETA\
      \ as \nenacted by an applicable State. \n \n(ii) Electronic submission of documents \n \nRefer to\
      \ Section 9102.5(d) for requirements regarding electronic submission of \n \n(iii)Electronic solicitation\
      \ \n \nServicers may solicit Borrowers for a modification electronically and may add new \nBorrowers\
      \ and release Borrowers pursuant to Electronic assumption and release of \nliability agreements\
      \ provided the Servicer complies with the requirements of Section \n1401.3(h) and other applicable\
      \ Guide sections. \n \n(iv) eModification Agreements \n \nThe requirements of this Section 9206.4(d)\
      \ apply only to eModification Agreements of \npaper Notes and related Security Instruments. See\
      \ Section 1402.5(c)(i) for requirements \nfor eModification Agreements that modify an eMortgage.\
      \ \n \n■ Special representations and warranties \n \nA Servicer allowing Borrowers to receive, transmit\
      \ or electronically sign an \neModification Agreement represents and warrants to Freddie Mac that\
      \ it has \ncomplied with the requirements of the Guide and that the eModification Agreement is \n\
      authentic, its terms are valid and enforceable against the Borrower and the modified \nMortgage\
      \ complies with the requirements of Section 9206.2(c). \n \n■ Restrictions on the use of an eModification\
      \ Agreement \n \nAn eModification Agreement may be a Category 3 SMARTDoc (v1.02), unless this \n\
      Chapter 9206 requires the eModification Agreement to be recorded or in recordable \nformat and the\
      \ recording jurisdiction does not support the Category 3 SMARTDoc \nformat. \n \nServicers may not\
      \ use an eModification Agreement if: \n \n\n \n \n \n \n \nPage 9206-46 \n❑ The Mortgage, as modified\
      \ by the eModification Agreement, would be invalid or \nunenforceable or would no longer be in First\
      \ Lien position \n \n❑ The jurisdiction in which the eModification Agreement would be recorded,\
      \ when \nrecordation is required, does not permit or provide for recordation of Electronic \ndocuments\
      \ \n \n❑ The Servicer is unable to comply with the recording jurisdiction’s recordation and \nformatting\
      \ requirements for an Electronic document or the jurisdiction does not \npermit or provide for recordation\
      \ of Electronic documents, and Sections 9206.2(c) \nor 9206.4(a) requires the Modification Agreement\
      \ to be recorded or in recordable \n \nFreddie Mac will not reimburse any costs that result from\
      \ a Servicer’s decision to use \nan eModification Agreement, and such costs may not be assessed\
      \ to the Borrower. \n \n■ General requirements applicable to all Freddie Mac eModification Agreements\
      \ \n \n \n❑ Process, modify and store eModification Agreements of Freddie Mac Mortgages \nunder\
      \ requirements that are no less stringent than applicable industry standards \nwhen electronically\
      \ processing, modifying and storing its own Electronic \nmodification agreements for mortgages that\
      \ it owns or services for others \n \n❑ Consult with their legal counsel to ensure that the Servicer’s\
      \ use, processing and \nstorage of an eModification Agreement complies with all applicable federal,\
      \ State \nand local laws \n \n❑ Provide for Electronic notarization when required, subject to applicable\
      \ law \n \n❑ Comply with all requirements in the Servicing Contract to service the Mortgage, \n\
      as modified by an eModification Agreement, including, but not limited to, \nServicing obligations\
      \ related to payoff or short sale (e.g., cancelation of the \nMortgage, Note and eModification Agreement),\
      \ grant of a deed-in-lieu of \nforeclosure, foreclosure, repurchase of an electronically modified\
      \ Mortgage and \n \n❑ Assure that the signing platform has a robust audit trail of all key events\
      \ starting \nBorrower and Servicer execution that the Servicer can reproduce upon request by \n\
      \ \n■ Additional requirements when the eModification Agreement must be recorded \nor in recordable\
      \ format \n \n\n \n \n \n \n \nPage 9206-47 \nWhen an eModification Agreement must be recorded or\
      \ in recordable format as \nrequired in Sections 9206.2(c) or 9206.4(a), a Servicer may use an eModification\
      \ \nAgreement, provided the Servicer is able to comply with the recording jurisdiction’s \nrecordation\
      \ and Electronic format requirements. \n \n■ Document custodial requirements \n \nUpon execution\
      \ of an eModification Agreement, the Servicer must provide a copy of \nthe executed eModification\
      \ Agreement to its Document Custodian in a format that is \nacceptable to the Document Custodian,\
      \ to be maintained or logically associated with \nthe Note. \n \nIf recordation is required, the\
      \ Servicer must provide a copy of the recorded \neModification Agreement or a copy of evidence of\
      \ recordation together with a copy \nof the executed eModification Agreement to its Document Custodian.\
      \ \n \n■ Storage and safekeeping of eModification Agreements \n \neModification Agreements (including\
      \ printed paper copies of facsimiles of \neModification Agreements) must be stored in accordance\
      \ with the Guide \nrequirements for storing Mortgage file documents and must be stored in an eVault\
      \ or \neStorage System. eModification Agreements must be logically associated with all \npaper Mortgage\
      \ file documents so that all Servicing records (both paper and \nElectronic) are identified and\
      \ associated with the affiliated Mortgage transaction. \n \n \nUpon a Transfer of Servicing involving\
      \ Mortgages with eModification Agreements, \nthe Transferor Servicer must comply with Section 7101.1(b)(ii)(B)#8\
      \ and inform the \nTransferee Servicer of the name of the eVault or eStorage System holding the\
      \ \neModification Agreement. The Transferor Servicer must cause its eVault or eStorage \nSystem\
      \ provider to transfer the eModification Agreement and all related data to the \nTransferee Servicer’s\
      \ eVault or eStorage System provider in a manner that ensures \nthe ongoing validity and enforceability\
      \ of the eModification Agreement and its \nassociated Electronic Signature. A Transferor Servicer\
      \ may not satisfy its obligations \nunder this section by relying on Section 7101.5(a) by generating\
      \ paper copies of \neModification Agreements for the Transferee Servicer. \n \n■ Data security requirements\
      \ and data privacy protection \n \n \nServicers must follow data security requirements in Sections\
      \ 1302.2 and 1401.2(c) \nand the data privacy protection standards in Section 8101.4(d). Servicers\
      \ are required \nto maintain their eStorage System and conduct periodic information security reviews\
      \ \nof the data stored and maintained in such systems based on, but not limited to, \napplicable\
      \ federal, State and local laws and regulations and the Guide. \n \n\n \n \n \n \n \nPage 9206-48\
      \ \nFreddie Mac reserves the right to require a Servicer to implement additional security \nmeasures\
      \ regarding its Servicing eStorage System. \n \n■ Disaster recovery/business continuity plan \n\
      \ \nRefer to Section 1302.3 for Seller/Servicer business continuity planning \n\n \n \nPage 9207-1\
      \ \nChapter 9207: Workout Mortgage Assumption \n9207.1: Workout Mortgage assumption, including \n\
      overview, eligibility, submission, approval and closing \n \n■ What is a workout Mortgage assumption?\
      \ \n \n■ When to consider a workout Mortgage assumption \n \n■ Eligibility requirements for a workout\
      \ Mortgage assumption \n \n■ Submitting a workout Mortgage assumption recommendation to Freddie\
      \ Mac \n \n■ Freddie Mac’s decision about a Servicer’s recommendation for workout Mortgage \nassumption\
      \ \n \n■ Approval conditions for a workout Mortgage assumption \n \n■ Closing requirements for workout\
      \ Mortgage assumption \n \n■ Servicer fee for workout Mortgage assumption \n \n(a) What is a workout\
      \ Mortgage assumption? \n \nA workout Mortgage assumption permits a qualified applicant to assume\
      \ title to the property \nand the Mortgage obligation from a Borrower who is currently delinquent\
      \ or in imminent \ndanger of default on his or her Mortgage because of an eligible hardship. \n\
      \ \nThis workout option has different requirements than the requirements for Transfers of \nOwnership\
      \ allowed under certain Mortgage documents or federal law. \n \nServicers must submit recommendations\
      \ for workout Mortgage assumptions to Freddie Mac \nfor approval. Refer to Chapter 8406 for those\
      \ requirements. \n \n(b) When to consider a workout Mortgage assumption \n \n(i) Long-term hardships\
      \ \n \nIf the Borrower’s eligible hardship, as described in Section 9202.1(b), is permanent or \n\
      long term and he or she cannot or does not want to retain ownership of the property but is \n\n\
      \ \n \nPage 9207-2 \ncooperative and has a potential buyer for the property, then the Servicer should\
      \ explore \nthe possibility of a workout Mortgage assumption in accordance with the requirements\
      \ in \nSections 9207.1(c) through 9207.1(h) as a solution to the Delinquency. \n \n(ii) Simultaneous\
      \ assumptions, relief options and modifications \n \nThe Servicer must also consider an assumption\
      \ of the Mortgage in situations where: \n \n■ All Borrowers are deceased or \n \n■ One or more Borrower(s)\
      \ on the Note has an eligible hardship as described in Section \n9202.1(b) and the hardship is expected\
      \ to cause a long-term or permanent decrease in \nthe Borrower’s income or increase in the Borrower’s\
      \ expenses such that all \nBorrowers on the Note are unable or unlikely to continue making the monthly\
      \ \nMortgage payment obligation \n \nIn this circumstance, if a natural person with a legal or beneficial\
      \ interest in the \nMortgaged Premises wishes to assume the Mortgage obligation (“non-Borrower \n\
      applicant”), then the Servicer must first determine if the non-Borrower applicant meets \nthe Transfer\
      \ of Ownership requirements under Chapter 8406. \n \nIf the non-Borrower applicant does not meet\
      \ the Transfer of Ownership requirements \nunder Chapter 8406 and the due-on-transfer clause has\
      \ been triggered or the Mortgage is \ndelinquent, the Servicer must explore all available relief\
      \ options as described in Chapter \n9203, including forbearance and payment deferral. \n \nDefined\
      \ term: For purposes of this section, a natural person with a beneficial interest in \nthe Mortgaged\
      \ Premises includes: \n \n■ An heir or legatee who will inherit the Mortgaged Premises following\
      \ completion of \nprobate or distribution of the assets of the estate of the deceased Borrower;\
      \ or \n \n■ A person awarded title to the Mortgaged Premises pursuant to a court decree or courtapproved\
      \ separation agreement where a quitclaim deed has not been executed or \nrecorded. If a Servicer\
      \ is uncertain whether a person has a beneficial interest in the \nMortgaged Premises, it should\
      \ consult its legal counsel or submit the case to Freddie \nMac via Resolve®. \n \nIf the non-Borrower\
      \ applicant meets the Transfer of Ownership requirements under \nChapter 8406 and the due-on-transfer\
      \ clause has not been triggered or the Mortgage is \ndelinquent, and the Servicer determines that\
      \ a relief option is unlikely to lead to a \nresolution of the default or Delinquency, the non-Borrower\
      \ applicant may be considered \nfor a simultaneous assumption and modification under the Freddie\
      \ Mac Flex \nModification® requirements. The non-Borrower applicant must provide the Servicer with\
      \ \na complete Borrower Response Package, and the Servicer must evaluate the nonBorrower applicant\
      \ as if he or she were a Borrower. \n\n \n \nPage 9207-3 \n \nServicers may first consider whether\
      \ the non-Borrower with a legal or beneficial interest \nin the property can qualify using the non-Borrower\
      \ income requirements specified in \nSection 9202.1(c)(ii). If the applicant does not meet the non-Borrower\
      \ income criteria in \nSection 9202.1(c)(ii) and/or wishes to assume the Mortgage obligation, then\
      \ Servicers \nmust follow the requirements below to submit a recommendation to Freddie Mac for a\
      \ \nsimultaneous assumption and modification. \n \nServicers must obtain Freddie Mac’s approval\
      \ prior to offering an otherwise eligible nonBorrower applicant a simultaneous assumption and modification.\
      \ \n \nTo submit a recommendation for a simultaneous assumption and Freddie Mac Flex \nModification,\
      \ the Servicer must submit its recommendation to Freddie Mac via the \nResolve User Interface. See\
      \ Resolve Online Help for additional details. Freddie Mac’s \ndecision will be available in the\
      \ Resolve Dashboard accessible via Freddie Mac \nGateway®. Supporting documentation must be submitted\
      \ to Freddie Mac (see Directory \n5) upon request \n \nIf Freddie Mac does not approve the request\
      \ for a simultaneous assumption and \nmodification, the Servicer must refer to Section 1301.2(i)\
      \ for information on adverse \naction notices that must be provided to the non-Borrower applicant\
      \ on behalf of Freddie \n \nThe requirements in this Section 9207.1(b) also apply in cases where\
      \ the only remaining \nBorrower is a trust and to other transfers that require acceleration of the\
      \ Note. \n \nNote: Refer to Chapter 8406 for additional information regarding Transfers of \nOwnership.\
      \ \n \n(c) Eligibility requirements for a workout Mortgage assumption \n \nTo recommend a Borrower\
      \ for a workout Mortgage assumption, the Servicer must complete \nForm 1077, Uniform Underwriting\
      \ and Transmittal Summary, and ensure that all of the \nfollowing eligibility requirements are met:\
      \ \n \n■ The Borrower must have an eligible hardship \n \n■ The Borrower must be delinquent in his\
      \ or her payments or in imminent danger of default \n \n■ The Borrower must submit a complete Borrower\
      \ Response Package. (See Section 9102.5 \nfor information on the Borrower Response Package.) \n\
      \ \n■ The Borrower must be cooperative and allow access to the interior of the property for a \n\
      BPO for: \n \n\n \n \nPage 9207-4 \n❑ A Mortgage secured by a 2- to 4-unit property, a Manufactured\
      \ Home or a dwelling \nsubject to a leasehold estate \n \n❑ A Cooperative Share Loan secured by\
      \ a First Lien on the Cooperative Interest to a \nCooperative Unit. (See Chapter 8801 for special\
      \ Servicing requirements for \nCooperative Share Loans.) \n \n■ The indebtedness-to-value (ITV)\
      \ ratio must be equal to or greater than 85%. The total \nITV ratio is the total indebtedness under\
      \ the terms of the Mortgage, which includes the \nUPB, accrued interest, Escrow advances and expenses\
      \ (see Exhibit 57A, Approved \nAttorney, Foreclosure, Mediation, Postponement Fees and Title Expenses,\
      \ for the \napplicable expense limits) divided by the probable sales price determined by Freddie\
      \ \n \n■ The applicant assuming the Mortgage must meet Freddie Mac’s underwriting guidelines \n\
      in Topics 5100 through 5500 and Section 8406.2(a) as documented on Form 1077 \n \n■ The applicant\
      \ must pay a Down Payment of at least 5% of the total indebtedness unless \nthe Transfer of Ownership\
      \ meets the criteria listed in Section 8406.1(c) or 8406.1(d) \n \n(d) Submitting a workout Mortgage\
      \ assumption recommendation to Freddie Mac \n \nTo recommend a workout Mortgage assumption, the\
      \ Servicer must: \n \n■ Obtain a property valuation through BPOdirect® (see Section 2406.1 regarding\
      \ obtaining \na property value via BPOdirect). \n \n❑ For a Mortgage secured by a 1-unit property\
      \ (excluding a Manufactured Home, a \ndwelling subject to a leasehold estate or a Cooperative Unit),\
      \ the Servicer must, \nunless otherwise noted below, use an available automated value \n \n❑ If\
      \ an automated value is not available for the Mortgage secured by a 1-unit property, \nor, pursuant\
      \ to Section 9207.1(c), the Borrower must be cooperative and allow access \nto the interior of the\
      \ property for a BPO, then the Servicer must order a new property \nvaluation in accordance with\
      \ Sections 2406.1, 9202.4(b) and 9202.4(d), if necessary \n \n❑ The property valuation must be less\
      \ than 90 days old on the date the Servicer \nrecommends the workout Mortgage assumption to Freddie\
      \ Mac \n \nNote: The Servicer does not need to submit the valuation to Freddie Mac because Freddie\
      \ \nMac will have access to the value via BPOdirect. \n \nNotwithstanding the requirements above,\
      \ if the Servicer has previously obtained a \nFreddie Mac-compliant property valuation (i.e., Freddie\
      \ Mac-provided BPO, Freddie \nMac-provided appraisal or an appraisal obtained in compliance with\
      \ Topic 5600), the \n\n \n \nPage 9207-5 \nServicer must use the Freddie Mac-compliant property\
      \ valuation in connection with a \nworkout Mortgage assumption evaluation. \n \n■ Submit all of\
      \ the following to Freddie Mac (see Directory 5): \n \n❑ The Borrower’s complete Borrower Response\
      \ Package (see Section 9102.5 for a \ndescription of the Borrower Response Package) \n \n❑ Completed\
      \ Form 1077 detailing the Servicer’s underwriting of the applicant \n \n❑ A copy of the fully executed\
      \ sales contract and addenda \n \n❑ Estimated seller Closing Costs, if applicable \n \n❑ If the\
      \ Mortgage is covered by mortgage insurance, a faxed copy of the approval from \nthe MI to Freddie\
      \ Mac within two Business Days of the Servicer’s receipt of the MI’s \n \n(e) Freddie Mac’s decision\
      \ about a Servicer’s recommendation for workout Mortgage \nassumption \n \nFreddie Mac will review\
      \ the documentation the Servicer submits and make a decision to \napprove or deny the workout Mortgage\
      \ assumption request. \n \n(i) Approval of request \n \nIf Freddie Mac approves the assumption request,\
      \ it will send the Servicer an approval \nletter detailing any conditions of Freddie Mac’s approval.\
      \ \n \n(ii) Denial of request \n \nIf Freddie Mac denies the assumption request, it will send the\
      \ Servicer an explanation of \nwhy Freddie Mac denied the request and provide the Servicer with\
      \ the course of action it \nmust take to resolve the Delinquency. The Servicer must provide an adverse\
      \ action notice \nto all applicable parties, in addition to any other notice or disclosure required\
      \ under the \nEqual Credit Opportunity Act, Fair Credit Reporting Act, Truth in Lending Act and\
      \ any \nother applicable law or regulation. \n \nRefer to Section 1301.2(i) for more information\
      \ about adverse action notice \n \n(f) Approval conditions for a workout Mortgage assumption \n\
      \ \nIf Freddie Mac approves the Servicer’s recommendation to allow an assumption of the \nMortgage,\
      \ the Servicer must ensure that all conditions listed on Freddie Mac’s approval letter \nare met\
      \ and must: \n\n \n \nPage 9207-6 \n \n1. Obtain approval from the FHA, RHS, VA or MI, if applicable;\
      \ for leasehold Mortgages, \nobtain the consent of the fee simple landowner/lessor to the assignment\
      \ of lease, if \nrequired under the lease \n \n2. Complete an Escrow analysis or establish an Escrow\
      \ account to ensure that there are \nsufficient funds to pay the property taxes, property and mortgage\
      \ insurance premiums, \netc. \n \n3. Process the assumption so that the settlement occurs within\
      \ 30 days of Freddie Mac’s \napproval and submit the assumption agreement for recordation within\
      \ one Business Day \nof the settlement. \n \nNote: Per Section 1402.5(c)(ii), the Servicer must\
      \ update the MERS® eRegistry (as \ndefined in Section 1402.1(b)) to provide notice of the assumption\
      \ agreement upon a \nworkout Mortgage assumption (with or without a release of liability) of an\
      \ eMortgage (as \ndefined in Section 1402.1(b)). \n \n4. Comply with the documentation requirements\
      \ in Section 8406.3(a) \n \n5. Ensure that the Borrower does not receive any cash-out from the transaction\
      \ unless \nFreddie Mac receives all sums due to it \n \n6. Ensure that all delinquent amounts are\
      \ brought current at the time of settlement \n \n7. Retain any credit enhancement if the existing\
      \ Mortgage has a credit enhancement. (If the \nServicer is not the provider of the credit enhancement,\
      \ it must obtain written approval \nfrom the institution providing the enhancement.) \n \n8. For\
      \ leasehold Mortgages, ensure the transferee has acquired the transferor’s leasehold \ninterest\
      \ either by obtaining a new lease or assuming the existing lease and that the \ntransfer of the\
      \ leasehold interest is recorded \n \n9. For Cooperative Share Loans, comply with the requirements\
      \ in Section 8801.3(a) \n \n(g) Closing requirements for workout Mortgage assumption \n \nAfter\
      \ the workout Mortgage assumption has been closed, submit the following to Freddie \nMac (see Directory\
      \ 5) to settle the workout: \n \n■ A copy of the settlement statement \n \n■ A copy of the executed\
      \ assumption agreement \n \n■ A copy of the deed \n \n\n \n \nPage 9207-7 \n■ The Borrower’s contribution\
      \ or promissory note, if applicable \n \n■ A copy of the written approval from the provider of the\
      \ credit enhancement, if applicable \n \n(h) Servicer fee for workout Mortgage assumption \n \n\
      The Servicer may charge the applicant a fee not to exceed the greater of $400 or 1% of the \nUPB\
      \ of the Mortgage, to a maximum fee of $900. \n\n \n \n \nPage 9208-1 \nChapter 9208: Freddie Mac\
      \ Standard Short Sale \n9208.1: Short sale eligibility, Borrower requirements \nand approval (09/10/25)\
      \ \n \n■ What is a short sale? \n \n■ Short sale eligibility requirements and Servicer approval\
      \ authority \n \n■ Borrower documentation for a short sale \n \n■ Short sale Borrower contributions\
      \ and relocation assistance \n \n(a) What is a short sale? \n \nA Freddie Mac Standard Short Sale\
      \ (“short sale”) is the sale of the Mortgaged Premises for \nless than the total amount necessary\
      \ to satisfy the Mortgage. \n \nWhen the sale proceeds are less than the total amount due but there\
      \ is a mortgage insurance \nclaim payment or a Borrower cash contribution that results in Freddie\
      \ Mac’s receiving all \nsums owed on the Mortgage, then Freddie Mac considers the transaction a\
      \ “make-whole” \npreforeclosure sale rather than a short sale. The Servicer does not need to obtain\
      \ Freddie \nMac’s prior approval for a make-whole preforeclosure sale. \n \nNote: Refer to Section\
      \ 9208.3(a) for Freddie Mac’s reporting and closing requirements for a \nmake-whole preforeclosure\
      \ sale. \n \n(b) Short sale eligibility requirements and Servicer approval authority \n \nIf the\
      \ Borrower’s eligible hardship is permanent or long term and the Borrower is unable or \nunwilling\
      \ to sustain homeownership, then the Servicer should determine if the Borrower \nmeets the eligibility\
      \ requirements for a short sale. The Servicer must evaluate the Borrower \nfor a short sale under\
      \ this chapter once the Servicer has otherwise complied with the \nevaluation hierarchy in Section\
      \ 9201.2. \n \nIf the Mortgage is subject to a recourse or indemnification agreement, the Servicer\
      \ may \napprove a short sale provided the Servicer reports and Freddie Mac drafts a full payoff\
      \ to \nFreddie Mac and the Servicer absorbs any losses and expenses related to the Delinquency.\
      \ \n \nIf the Mortgage is an FHA, VA or Guaranteed Rural Housing Mortgage, the Servicer must \n\
      comply with the requirements of the applicable agency when approving a short sale in a \nmanner\
      \ that ensures continued coverage of the Mortgage. \n\n \n \n \nPage 9208-2 \n \nThe Servicer must\
      \ use the Borrower’s Delinquency status to determine eligibility, \ndocumentation requirements and\
      \ Borrower contributions. The Servicer determines the \nDelinquency status at the time of evaluation\
      \ for eligibility and Borrower contribution in \naccordance with the following: \n \n■ When determining\
      \ eligibility in accordance with this section, the Servicer must use the \nDelinquency status of\
      \ the Mortgage on the date the Servicer begins the evaluation using \nrequired documentation pursuant\
      \ to Section 9208.1(c)(i) \n \n■ When the Servicer’s evaluation for eligibility did not include\
      \ a review of a purchase \noffer, the Servicer must evaluate the Borrower for a contribution, if\
      \ applicable, once the \npurchase offer is received. The Servicer must determine the Delinquency\
      \ status of the \nMortgage when beginning the review of the purchase offer. If the credit report\
      \ is now \ngreater than 90 days old from the date of initial evaluation for eligibility, the Servicer\
      \ \nmust order a new credit report. \n \n(i) Eligibility requirements for a short sale \n \nEvery\
      \ Borrower, regardless of Delinquency status, is eligible to be considered for a short \nsale, provided\
      \ the following requirements are met: \n \n■ Borrowers who do not meet the requirements for a Streamlined\
      \ Short Sale (as defined \nin Section 9208.1(c)(i)(A)) must be experiencing or have experienced\
      \ one of the \neligible hardships listed in Section 9202.1(b)(i) \n \n■ The sale must be an arm’s\
      \ length transaction as defined in Section 9208.2(c) \n \n■ The Borrower has listed the Mortgaged\
      \ Premises for sale with a licensed real estate \nbroker who in turn must have listed the Mortgaged\
      \ Premises on the Multiple Listing \nService (MLS) covering the market in which the Mortgaged Premises\
      \ is located for at \nleast five consecutive days. The listing requirements are as follows: \n \n\
      ❑ The listing period must include at least one weekend (i.e., Saturday and Sunday) \n \n❑ The listing\
      \ must be in an “active” status for at least the five days immediately \npreceding the day on which\
      \ the purchase offer is accepted by the Borrower and \nsubmitted to the Servicer for approval \n\
      \ \n❑ If the Mortgaged Premises is located in an area that is not covered by an MLS, \nthen it must\
      \ be advertised for sale by the real estate broker in a manner customary \nfor that real estate\
      \ market at least five consecutive calendar days, which must \ninclude at least one weekend \n \n\
      ❑ The Servicer must retain a copy of the MLS listing of the Mortgaged Premises in \nthe Mortgage\
      \ file (or documentation of the advertisement(s) if the Mortgaged \n\n \n \n \nPage 9208-3 \nPremises\
      \ is located in an area not covered by an MLS). The Borrower may not act \nas the listing agent\
      \ or attempt to sell the Mortgaged Premises without a licensed \nreal estate professional. \n \n\
      ■ The Borrower has not acquired a new Mortgage in the six months preceding the \nBorrower’s Delinquency\
      \ or, if the Borrower is current, in the six months preceding \nthe evaluation of the Borrower for\
      \ a short sale. The Borrower is only permitted to \nhave obtained a new Mortgage if the Borrower’s\
      \ eligible hardship was distant \nemployment transfer. \n \n■ The Borrower must not have entered\
      \ into a program or arrangement where a third \nparty takes title to the Mortgaged Premises and\
      \ arranges a short sale in exchange for a \nfee \n \nA Borrower who is current or less than 60 days\
      \ delinquent must meet the imminent \ndefault requirements as described in Section 9208.1(c)(iii).\
      \ \n \n(ii) Servicer approval authority \n \nUnless otherwise notified by Freddie Mac, all Servicers\
      \ are delegated to approve a short \nsale that meets the eligibility requirements of Section 9208.1(b)(ii).\
      \ \n \nAdditional circumstances servicers are not delegated to approve short sale \nSection 8801.3(c)\
      \ \nBorrower documentation for a short sale \nSection 9208.1(c) \nShort sale Borrower contributions\
      \ and relocation assistance \nSection 9208.1(d) \nProperty valuation and minimum net proceeds for\
      \ short sales \nSection 9208.2(a) \nCommunication timelines for short sales \nSection 9208.2(b)\
      \ \nShort sale transactions and processing requirements \nSection 9208.2(c) \n \n(iii)Submitting\
      \ a short sale recommendation to Freddie Mac \n \nFor situations where the Borrower does not meet\
      \ the eligibility requirements for a short \nsale and the Servicer determines a short sale may be\
      \ the best option for addressing the \nDelinquency or imminent Delinquency, the Servicer must use\
      \ Resolve® to submit a \nrecommendation to Freddie Mac for review with the following required documentation:\
      \ \n \n\n \n \n \nPage 9208-4 \n1. Complete Borrower Response Package or other documentation as\
      \ permitted in \nSection 9208.1(c) \n \n2. A copy of the fully executed sales contract on the Mortgaged\
      \ Premises, with addenda, \nstating that it is being purchased in “as-is” condition. If the buyer\
      \ obtains FHA, RHS \nor VA financing, then the contract does not need to include the “as-is” condition\
      \ if the \nFHA, RHS or VA requires the condition to be removed. \n \n3. Preliminary Settlement/Closing\
      \ Disclosure Statement \n \n4. For Mortgages secured by properties subject to resale restrictions\
      \ (in accordance with \nChapter 4406, 4502 or 4504, as applicable), the applicable resale restrictions\
      \ \ncontaining details on the property valuation and/or the restricted resale price as well \nas\
      \ any other terms and conditions that must be met \n \n5. For Cooperative Share Loans, the additional\
      \ documentation listed in Section \n8801.5(c)(i) \n \nIn addition, the Servicer may submit a recommendation\
      \ to Freddie Mac for consideration \nif the Borrower does not have an eligible hardship but one\
      \ of the following conditions \nexists and, in the Servicer’s judgment, the short sale is an appropriate\
      \ resolution to the \nDelinquency: \n \n■ There is a Risk of Property Ownership to Freddie Mac (see\
      \ Section 9202.2(b)) \n \n■ Litigation is pending that affects the Mortgaged Premises or the Mortgage\
      \ and could \njeopardize a successful foreclosure sale \n \n■ Other special circumstances (e.g.,\
      \ the Mortgaged Premises deteriorated resulting in an \nunexpected decline in the value) \n \nNote:\
      \ All non-delegated short sales submitted through Resolve will be available for \nreview in the\
      \ Resolve dashboard. \n \n(c) Borrower documentation for a short sale \n \n(i) Borrower documentation\
      \ \n \nIn addition to the requirements below, all Borrowers must provide the Servicer a copy of\
      \ \nthe fully executed sales contract with any addenda and the preliminary \nSettlement/Closing\
      \ Disclosure Statement once those documents are available. \n \n(A) Borrower documentation requirements\
      \ for a short sale \n \n\n \n \n \nPage 9208-5 \nBorrower documentation requirements for a short\
      \ sale by Delinquency status \nIf the \nDelinquency \nstatus at of the \ntime of \nevaluation is…\
      \ \nThe Servicer must… \nCurrent or less \nthan 90 days \nEvaluate the Borrower based on a complete\
      \ Borrower Response \nPackage as defined in Section 9102.5. \nNote: If the Mortgage is current or\
      \ less than 60 days delinquent, the \nServicer must determine that the Borrower’s monthly payment\
      \ is in \nnon-retention imminent default in accordance with Section \n9208.1(c)(iii)(A). \nBetween\
      \ 90 \ndays and 18 \nEvaluate the Borrower based on a complete Borrower Response \nPackage, unless\
      \ one of the following conditions applies: \n■ The Borrower failed a Freddie Mac Flex Modification®\
      \ Trial \nPeriod Plan within the 12 months prior to evaluation for a short \nsale or deed-in-lieu\
      \ of foreclosure \n■ The Borrower previously received a Freddie Mac Flex \nModification and became\
      \ 60 days or more delinquent within the \nfirst 12 months of the effective date of the modification\
      \ without \ncuring the Delinquency \n■ The Borrower previously completed three or more modifications;\
      \ \n■ The Borrower received a forbearance plan as a result of a hardship \ndue to their Mortgaged\
      \ Premises or places of employment being \nlocated in an Eligible Disaster Area or COVID-19 and\
      \ became 90 \ndays or more delinquent prior to the evaluation for a short sale; or \n■ The Mortgage\
      \ is not secured by an Investment Property, as \nidentified at origination, and the Borrower’s Credit\
      \ Score is less \nthan or equal to 620 \nIn these cases, the Servicer must evaluate the Borrower\
      \ for a \nStreamlined Short Sale or Streamlined Deed-in-Lieu of Foreclosure. \nGreater than 18 \n\
      Evaluate the Borrower for a Streamlined Short Sale. \nA Streamlined Short Sale is a Standard Short\
      \ Sale where the Servicer \nis not required to obtain the Borrower Response Package or to verify\
      \ \nan eligible hardship. \n \n\n \n \n \nPage 9208-6 \nIf the debt secured by the Mortgaged Premises\
      \ has been discharged in a bankruptcy \nproceeding filed pursuant to Chapter 7 of the U.S. Bankruptcy\
      \ Code, the Borrower is \neligible for a short sale evaluation regardless of delinquency, occupancy\
      \ or property \ntype and without requiring a Borrower Response Package. The Borrower must \nprovide\
      \ the Servicer a copy of the order and accompanying documents showing that \nthe debt was discharged.\
      \ The Servicer must retain those documents in the Mortgage \n \n(B) Borrower’s Credit Score requirements\
      \ \n \nThe Borrower’s Credit Score must be no more than 90 days old as of the date the \nServicer\
      \ evaluates the Borrower for a short sale. \n \nIf there is more than one Borrower on the Mortgage,\
      \ the Servicer must choose one \nCredit Score that is adequately indicative of the credit reputation\
      \ of all Borrowers \ncurrently on the Mortgage. The following method must be used: \n \n1. The Servicer\
      \ must first select a single Credit Score for each Borrower on the \n \n2. If the Servicer obtains\
      \ multiple Credit Scores for a single Borrower, the Servicer \nmust use the middle/lower method\
      \ to select the single Credit Score for that \n \n3. If there are multiple Borrowers on the Mortgage,\
      \ the Servicer must determine the \nsingle Credit Score for each Borrower using the method described\
      \ above \n \n4. The Servicer must then select either the lowest Credit Score across all Borrowers\
      \ \non the Mortgage or the average Credit Score from all Borrowers’ single scores. \n \nWhichever\
      \ method is used, the Servicer must choose the single Credit Score using the \nsame method and procedure\
      \ for all Borrowers and for all Mortgages consistent with \nfair lending laws. \n \nIf the Borrower\
      \ was previously determined to be eligible for a Streamlined Short Sale \nand had yet to receive\
      \ a purchase offer, then when a subsequent purchase offer is \nreceived, the Servicer may use the\
      \ same Credit Score obtained for the Servicer’s \ninitial evaluation of the Borrower for a short\
      \ sale even if the Credit Score has become \nmore than 90 days old. However, if the Borrower has\
      \ since brought the Mortgage \ncurrent, then the Borrower is no longer eligible for a Streamlined\
      \ Short Sale and is \nrequired to submit a complete Borrower Response Package to the Servicer to\
      \ be \nevaluated for the short sale. \n \n(ii) Evaluating the Borrower \n \n\n \n \n \nPage 9208-7\
      \ \n(A) Evaluating the credit report \n \nThe Servicer must obtain a credit report for each Borrower\
      \ on the Mortgage (or a \njoint report for co-Borrowers). The credit report must be no more than\
      \ 90 days old as \nof the date the Servicer evaluates the Borrower for a short sale. The Servicer\
      \ must \nreview the credit report to verify that the Borrower meets the relevant requirements \n\
      for a short sale and to evaluate the Borrower’s ability to make a contribution. \n \n(I) Verifying\
      \ occupancy \n \nFor Borrowers who are current or less than 60 days delinquent, the Servicer must\
      \ \nreview the credit report to verify that at least one of the Borrowers is occupying \nthe Mortgaged\
      \ Premises as a Primary Residence. If the credit report does not \nindicate that the Mortgaged Premises\
      \ is the Primary Residence for at least one \nBorrower, then the Servicer must use good business\
      \ judgment in reconciling the \ninconsistency. \n \n(II) New Mortgages \n \nUnless a Borrower is\
      \ eligible for a Streamlined Short Sale, the Servicer must \nreview the Borrower’s credit report\
      \ to determine whether the Borrower obtained a \nnew Mortgage(s) in the six months preceding the\
      \ Borrower’s Delinquency or, if \nthe Borrower is current, in the six months preceding the evaluation\
      \ of the \nBorrower for a short sale. \n \nIf the Servicer’s review of the credit report reveals\
      \ a new Mortgage, the Servicer \nmay approve the short sale only if the hardship was due to distant\
      \ employment \ntransfer, relocation due to new employment or Permanent Change of Station \n(PCS)\
      \ orders and the Servicer verifies that: \n \n■ The Borrower intends to occupy the property securing\
      \ the new Mortgage as \nthe Borrower’s Primary Residence \n \n■ The new employment location is greater\
      \ than 50 miles one-way from the \n \n■ The new property address is reasonably near the Borrower’s\
      \ new employment \n \nIf the Borrower has any other hardship and the Servicer determines a new \n\
      Mortgage has been obtained, the Servicer is not delegated to approve the short \nsale and must submit\
      \ the request to Freddie Mac for consideration. \n \nIf the Servicer’s review of the credit report\
      \ indicates that a mortgage creditor has \nmade an inquiry within the previous four-month period,\
      \ the Servicer must contact \nthe Borrower to determine the following on the Mortgage sought: \n\
      \n \n \n \nPage 9208-8 \n \n■ The address of the property, \n \n■ The purpose of the inquiry (e.g.,\
      \ refinance or purchase Mortgage), and \n \n■ The result of the inquiry (e.g., refinance or purchase\
      \ Mortgage is pending, \nclosed or canceled) \n \nIf a purchase Mortgage was obtained, then the\
      \ Servicer is not delegated to \napprove the short sale, and the file must be sent to Freddie Mac.\
      \ Refer to Section \n9208.1(b) regarding submission of a short sale to Freddie Mac. \n \n(iii)Special\
      \ requirements for Borrowers who are current or less than 60 days \n \nIf a Borrower is current\
      \ or less than 60 days delinquent at the time of initial evaluation, \nhe or she must be considered\
      \ to be in non-retention imminent default following the \nbusiness rules in the chart below unless\
      \ the Borrower was discharged from a Chapter 7 \nbankruptcy in order to be eligible for a short\
      \ sale. \n \n(A) Non-retention Imminent default evaluation business rules \n \nResolve will evaluate\
      \ the information the Servicer provides against the imminent \ndefault business rules. Any Borrower\
      \ who is current or less than 60 days delinquent at \nthe time the Servicer begins the initial evaluation\
      \ is in imminent default if the \nBorrower meets the requirements of the following business rules:\
      \ \n \n■ Be current or less than 60 days delinquent (i.e., less than three \nmonthly payments past\
      \ due) on the Mortgage as of the \nevaluation date \n■ Occupy the property as a Primary Residence\
      \ (or at least one \nBorrower on the Mortgage must occupy the property as his or \nher Primary Residence)\
      \ \n\n \n \n \nPage 9208-9 \n■ Have Cash Reserves (as defined in Section 9208.1(c)(iii)(C)(I)) \n\
      less than $25,000 \n■ Have an eligible hardship as described in Section 9202.1(b) \nNote: Requirements\
      \ related to occupancy and non-retirement liquid \nassets do not apply if the Borrower is a Servicemember\
      \ with PCS \norders and the property securing the Mortgage is or was the \nBorrower’s Primary Residence\
      \ where the transfer or new \nemployment location is greater than 50 miles one way from the \nproperty\
      \ securing the Mortgage. \nThe Borrower is considered in non-retention imminent default if the \n\
      Borrower meets the requirements of business rule 1, and \n■ The Borrower’s Credit Score is less\
      \ than or equal to 620 \ndetermined in accordance with Section 9206.1(e)(v); AND \n■ The Mortgage\
      \ has had two or more 30-day Delinquencies in the \nmost recent 6-month period; OR \n■ The Borrower’s\
      \ housing expense-to-income ratio is greater than \n40% as of the evaluation date \nIf the Borrower\
      \ has one of the Imminent Default Hardships \ndescribed below in business rule 3, the Borrower may\
      \ be \ndetermined to be in imminent default even if these business rule 2 \nrequirements are not\
      \ met. \nThe Borrower is considered in non-retention imminent default if the \nBorrower meets the\
      \ requirements of business rule 1, and the \nBorrower provided the documentation required in Section\
      \ \n9202.1(b) supporting one of the Imminent Default Hardships listed \n■ Death of a Borrower or\
      \ death of either the primary or secondary \nwage earner in the household \n■ Long-term or permanent\
      \ disability or serious illness of a \n\n \n \n \nPage 9208-10 \n■ Divorce or legal separation or\
      \ separation of Borrower unrelated \nby marriage, civil union or similar domestic partnership under\
      \ \napplicable law; or \n■ Distant employment transfer or relocation due to new \nemployment or\
      \ PCS orders where the property securing the \nMortgage being evaluated is the Borrower’s Primary\
      \ Residence. \nThe new employment location must be more than 50 miles one \nway from the property\
      \ securing the Mortgage being evaluated. \nThe Imminent Default Hardship must currently cause and\
      \ be \nexpected to continue to cause a long-term or permanent decrease in \nincome or increase in\
      \ expenses. \n \nThe Servicer must always submit all information for business rule 1 and business\
      \ rule \n2, even if the Borrower does not meet the requirements under business rule 2 and \ninstead\
      \ is approved based on the Imminent Default Hardship under business rule 3. \n \n(B) Income and\
      \ asset documentation and verification \n \n(I) Documentation verification \n \nTo be evaluated\
      \ for non-retention imminent default, a Borrower must, at a \nminimum, provide a complete Borrower\
      \ Response Package as defined in Section \n9102.5(c). In addition to the income documentation required\
      \ under Section \n9202.1(c), the Servicer must obtain the Borrower’s Credit Score in accordance\
      \ \nwith Section 9208.1(c)(iii). \n \n(II) Verification of income and assets; resolution of material\
      \ inconsistencies \n \nServicers must review all documentation submitted by the Borrower to identify\
      \ \nany material inconsistencies, including material inconsistencies with a tax return \nor tax\
      \ transcript if one was obtained under Section 9202.1(c). If, based on the \nServicer’s good business\
      \ judgment, there are material inconsistencies with respect \nto the income or asset information\
      \ disclosed by the Borrower or with other \ndocumentation relevant to the imminent default decision,\
      \ the Servicer must: \n \n\n \n \n \nPage 9208-11 \n1. Obtain other documentation to reasonably\
      \ reconcile such material \ninconsistencies \n \n2. Document such material differences in their\
      \ servicing system. \n \nIf the Servicer cannot reconcile such material differences, the Borrower\
      \ cannot be \n \n(C) Cash Reserves test \n \nimminent default. If the Borrower either discloses\
      \ or provides documentation \nindicating the Borrower has Cash Reserves equal to or greater than\
      \ $25,000, then the \nBorrower is not in imminent default. \n \n(I) Definition of Cash Reserves\
      \ \n \nFor purposes of determining imminent default, Cash Reserves are defined as \n \nwithdrawal\
      \ from any financial institution or brokerage, including funds on deposit \nin the Borrower’s checking,\
      \ savings, money market or certificate of deposit \naccount or other depository account, stocks,\
      \ bonds, mutual funds, U.S. \ngovernment securities and other securities that are traded on an exchange\
      \ or \nmarketplace generally available to the public (e.g., New York Stock Exchange, \nNational\
      \ Association of Securities Dealers Automated Quotations, Midwest SE, \nChicago Board of Trade or\
      \ Over the Counter) for which the price can be readily \nverified through financial publications.\
      \ \n \nAssets are only considered retirement assets if they are held in a qualified \nretirement\
      \ account such as a 401k, 403b, 457, Individual Retirement Account or \npension fund. If the assets\
      \ are not held in a retirement account, the assets must be \nconsidered Cash Reserves. \n \n(II)\
      \ Calculating Cash Reserves \n \n \n1. The Servicer must determine that, for every Borrower on the\
      \ Mortgage, all of \nthe Borrower’s Cash Reserves have been accounted for on Form 710, \nMortgage\
      \ Assistance Application \n \n2. In making the determination that all Cash Reserves have been accounted\
      \ for, \nthe Servicer must review all information provided by the Borrower to \n\n \n \n \nPage\
      \ 9208-12 \ndetermine if the asset information stated on Form 710 is reasonably consistent \nwith\
      \ information available from all other information provided by the \nBorrower, including verbal\
      \ information shared by the Borrower. If there are \ninconsistencies between the Borrower’s disclosure\
      \ of assets and the \ninformation provided by the Borrower, then the Servicer must obtain the \n\
      Borrower’s tax return or tax transcript in order to reconcile the \ninconsistencies. \n \nIf, upon\
      \ reviewing the Borrower’s tax return or tax transcript, if applicable, \nthe Servicer observes\
      \ interest, dividend income or gains/losses that, in total, \ncould not be reasonably produced by\
      \ the Borrower’s disclosed Cash Reserves, \nand such income indicates deposits, securities holdings\
      \ or other assets could \nbe in excess of the amounts disclosed by the Borrower on Form 710, the\
      \ \nServicer must reconcile the inconsistency with the Borrower. The Servicer \nmust require the\
      \ Borrower to produce a signed federal tax return and all \nrelevant schedules, in the event the\
      \ Servicer used a tax transcript in lieu of a \ntax return, along with any other relevant documentation\
      \ that verifies the \ndisposition and/or current status of those assets, which produced the income\
      \ or \ngains/losses to resolve the inconsistency. \n \nThe Servicer must ensure that the Borrower’s\
      \ disclosure of assets is \nreasonably accurate despite the inconsistency between the disclosed\
      \ assets and \nthe income or gain/loss from assets reported on the tax return or tax transcript.\
      \ \nIn determining what documentation is needed to reconcile an inconsistency, \nthe Servicer must\
      \ review the detailed tax return schedules and forms and \nrequest from the Borrower copies of recent\
      \ and past statements from those \nasset holdings or transactions indicated on the schedules and\
      \ forms that \nproduced the income or gain/loss (e.g., checking, savings, brokerage account \nstatements,\
      \ asset sale statements or records). \n \n3. If there are inconsistencies between the Borrower’s\
      \ disclosure of assets and \nthe tax return information that cannot be reconciled, the Borrower\
      \ cannot be \n \nIf the Servicer determines that the Borrower has Cash Reserves of less than \n\
      $25,000 and meets all other requirements of Section 9208.1(c)(iii), then the \nBorrower is considered\
      \ to be in imminent default. \n \n(D) Imminent Default Credit Score \n \nServicers must choose one\
      \ Credit Score that is adequately indicative of the credit \nreputation of all Borrowers currently\
      \ on the Mortgage. Servicers must use a Credit \nScore based on the credit-scoring model. This score\
      \ must be obtained and determined \nin accordance with the requirements below. \n \n(I) Obtaining\
      \ Credit Scores for each Borrower \n\n \n \n \nPage 9208-13 \n \nThe Servicer must request a Credit\
      \ Score for each Borrower on the Mortgage \nfrom any one of the following three credit repositories:\
      \ \n \n❑ Equifax Credit Information Services \n \n❑ Experian Information Systems and Services \n\
      \ \n❑ TransUnion Credit Information Company \n \nThe Borrower’s Credit Score must be less than 90\
      \ days old on the date the \nServicer performs the imminent default evaluation. \n \n(II) Borrowers\
      \ with no available Credit Score \n \nIt is unusual for any Borrower who has obtained a Mortgage\
      \ not to have a Credit \nScore. If no single Credit Score can be identified for a Borrower, the\
      \ Servicer \nmust recheck the information provided when ordering the Credit Scores and \nresubmit\
      \ a request. If the Servicer is still unable to obtain a Credit Score for that \nBorrower, it may\
      \ rely on the Credit Scores of all other Borrowers as determined \nin accordance with this section.\
      \ \n \nAbsent a Credit Score for any Borrower on the Mortgage, the Borrower may not \nbe determined\
      \ to be in imminent default under the requirements of business rule \n2, and the Servicer must proceed\
      \ to evaluate the Borrower under the requirements \nof business rule 3 in Section 9208.1(c)(i).\
      \ In such instances when a Credit Score is \nnot available for any Borrower on the Mortgage, the\
      \ Servicer must: \n \n1. Maintain documentation in the Mortgage file that demonstrates the Servicer’s\
      \ \nattempts to obtain Credit Scores from all three credit repositories on all \n \n2. Enter the\
      \ result that a Credit Score is not available for any Borrower on the \n \n3. Proceed to the Imminent\
      \ Default Hardship test in business rule 3 to determine \nif an Imminent Default Hardship exists\
      \ \n \n(III) Determining the Imminent Default Credit Score \n \nThe Servicer must identify the Imminent\
      \ Default Credit Score in accordance with \n \n❑ The Servicer must first select a single Credit\
      \ Score for each Borrower on the \nMortgage. If the Servicer obtains multiple Credit Scores for\
      \ a single \nBorrower, the Servicer must use the middle/lower method to select the single \n\n \n\
      \ \n \nPage 9208-14 \nCredit Score for that Borrower. This method is the most predictive when \n\
      determining a single Borrower’s overall credit reputation. If three Credit \nScores are obtained\
      \ for a Borrower, the single score for that Borrower is the \none with the middle value. For example,\
      \ if the Credit Scores were 660, 656 \nand 640, the single Credit Score selected by the Servicer\
      \ should be 656. When \nthere is a duplicate score, the Seller must select that score to be the\
      \ single \nscore. If the Credit Scores for a Borrower were 660, 660 and 640, the Servicer \nshould\
      \ select 660. If two Credit Scores were obtained for a Borrower, the \nServicer must select the\
      \ lower of the two Credit Scores to be the single Credit \nScore for that Borrower. \n \n❑ If there\
      \ is only one Borrower on the Mortgage, the single Credit Score, \ndetermined in accordance with\
      \ the above requirements, is considered the \nImminent Default Credit Score \n \n❑ \nIf there are\
      \ multiple Borrowers on the Mortgage, the Servicer must determine \nthe single Credit Score for\
      \ each Borrower using the method described above. \nThe Servicer must then select either the lowest\
      \ Credit Score across all \nBorrowers on the Mortgage or the average Credit Score from all Borrowers’\
      \ \nsingle scores. (Note: Whichever method is used, the Servicer should choose \nthe single Credit\
      \ Score using the same method and procedure for all \nBorrowers and for all Mortgages consistent\
      \ with fair lending laws.) \n \n(E) Calculating housing expense-to-income (HTI) ratio \n \nThe Servicer\
      \ must input verified income data into Resolve. Based on the Servicer’s \ninput, Resolve will determine\
      \ if the Borrower’s HTI ratio is greater than 40%. For \npurposes of this determination, the Borrower’s\
      \ current monthly housing expense is \ndivided by the Borrower’s monthly gross income (or the Borrowers’\
      \ combined \nmonthly gross income in the case of co-Borrowers) plus any allowable non-obligor \n\
      household income. \n \nThe Borrower’s current monthly housing expense consists of the following,\
      \ as \n \n \n \n \n \n■ Any escrow shortage currently included as part of the monthly contractual\
      \ \n\n \n \n \nPage 9208-15 \n \ncontractual rate of interest in effect on the Note prior to the\
      \ granting of the SCRA \nrelief rather than the temporarily SCRA-reduced interest rate and related\
      \ SCRA \nmonthly payment when calculating the Borrower’s current monthly HTI ratio. \n \nIf a Borrower\
      \ has indicated that there are condominium/HOA or Cooperative \nMaintenance Fees or ground rents\
      \ but has not been able to provide written \ndocumentation to verify these amounts, the Servicer\
      \ must rely on the information \nprovided by the Borrower if the Servicer has made reasonable efforts\
      \ to obtain the \namounts in writing. \n \npayments or payments due to holders of subordinate liens.\
      \ \n \nBased on the information provided by the Servicer, Resolve will calculate the \nBorrower’s\
      \ HTI ratio and determine if it meets the imminent default requirements \nunder business rule 2.\
      \ \n \n(F) Payment history \n \nBased on the information provided by the Servicer, Resolve will\
      \ review the \nBorrower’s payment history and determine if it meets the imminent default \nrequirements\
      \ under business rule 2. \n \n(G) Imminent default evaluation results \n \nIf the Borrower meets\
      \ the requirements of business rule 1 and meets the requirements \nof either business rule 2 or\
      \ business rule 3, the Borrower is in imminent default. The \nServicer must evaluate the Borrower\
      \ for a short sale and no further analysis is \nrequired by the Servicer to determine imminent default.\
      \ \n \n(H) General requirements and information \n \nIf the Servicer determines that a Borrower\
      \ is in imminent default, the Servicer must \ncontinue evaluating the Borrower using the applicable\
      \ underwriting requirements \noutlined in this chapter to determine if the Borrower qualifies for\
      \ a short sale. \n \n(d) Short sale Borrower contributions and relocation assistance \n \n(i) Borrower\
      \ contributions towards the deficiency \n \n\n \n \n \nPage 9208-16 \nIf the Servicer determines\
      \ that the Borrower’s Cash Reserves exceed $10,000 or the \nBorrower’s HTI ratio is less than or\
      \ equal to 40%, the Servicer must request a cash \ncontribution in accordance with the requirements\
      \ below. The Servicer must verbally \nconfirm the assets reported on Form 710 and reconcile any\
      \ differences with \ndocumentation following the procedure in Section 9202.1(c). A Servicer may\
      \ negotiate \ncontribution amounts less than the initial contribution requests, which must be \n\
      determined in accordance with the cash contribution formula in this section. When a \nServicer negotiates\
      \ a contribution that is less than the initial request, the Servicer must \ndocument the reason\
      \ for its decision(s) in the Mortgage file and note the specific financial \ncircumstances that\
      \ limit the Borrower’s ability to contribute towards the deficiency. \n \nUnless Freddie Mac has\
      \ delegated authority with the MI or communicates otherwise, if \nthe Mortgage is covered by mortgage\
      \ insurance and the MI requires a contribution from \nthe Borrower that is greater than the contribution\
      \ limits required by this section in order \nto approve the short sale, the Servicer must require\
      \ the Borrower to make the contribution \nrequired by the MI as a condition of approval. \n \nBorrowers\
      \ are not required to make a contribution in the following instances: \n \n■ Borrowers who are service\
      \ members with PCS orders, provided the property securing \nthe Mortgage is or was previously the\
      \ Borrower’s Primary Residence where the \ntransfer or new employment location is greater than 50\
      \ miles one way from the \nproperty securing the Mortgage being evaluated \n \n■ Borrowers who qualify\
      \ for a Streamlined Short Sale (refer to Section 9208.1(c)) \n \n■ Applicable law prohibits requesting\
      \ or receiving a contribution \n \nIf the Borrower’s Cash Reserves exceed $10,000 or his or her\
      \ HTI ratio is less than or \nequal to 40%, the Servicer must request the greater of 20% of the\
      \ Cash Reserves or four \ntimes principal, interest, taxes and insurance as a cash contribution.\
      \ The cash contribution \nmust not exceed the total amount of the deficiency. \n \n(A) Borrowers\
      \ who are current or less than 60 days delinquent and meet the criteria \ndescribed in the Cash\
      \ Reserves test \n \nIf the Borrower is current or less than 60 days delinquent and meets the criteria\
      \ \ndescribed in in the Cash Reserves test, the Borrower must contribute a minimum of \n20% of their\
      \ Cash Reserves. If the Borrower is unwilling to contribute 20% of their \nCash Reserves, the Servicer\
      \ must submit the case to Freddie Mac for review. \n \n(B) Borrowers who are 60 or more days delinquent\
      \ \n \nIf a Borrower who is 60 or more days delinquent cannot contribute 20% of his or her \nCash\
      \ Reserves, the Servicer may negotiate a lower level of contribution. If the \nServicer negotiates\
      \ and collects less than 20% of the Cash Reserves, the Servicer \n\n \n \n \nPage 9208-17 \nmust\
      \ document the specific circumstances that limit the Borrower’s ability to make \nthe initially\
      \ requested financial level of cash contribution (i.e., 20% of the Borrower’s \nCash Reserves) in\
      \ the Mortgage file. \n \nBased on the Servicer’s assessment of the Borrower’s written or stated\
      \ ability to pay in \ncombination with its evaluation of the Borrower’s financial and hardship information,\
      \ the \nServicer is authorized to negotiate a lower contribution amount. Additionally, the \nServicer\
      \ may determine that the Borrower’s individual circumstances warrant a lower \nstarting point to\
      \ cash contribution negotiations or no contribution. If a Borrower refuses \nto contribute an amount\
      \ the Servicer deems acceptable, then the short sale is not \ndelegated and must be submitted to\
      \ Freddie Mac following the process in Section \n9208.1(b). If the Servicer determines the Borrower\
      \ is unable to contribute at least $500 \ntoward the deficiency, then the Servicer must not collect\
      \ a cash contribution. \n \nIf the Borrower’s Cash Reserves are in excess of $50,000, the Servicer\
      \ must submit the \nshort sale request to Freddie Mac for review. \n \nRefer to Section 9208.1(b)\
      \ regarding the details for submitting a short sale \nrecommendation to Freddie Mac. \n \n(ii) Borrower\
      \ relocation assistance \n \nIf the Servicer determines that the Borrower is not required to make\
      \ a financial \ncontribution toward the deficiency, the Borrower is eligible to receive up to $7,500\
      \ in \nrelocation assistance provided that the Borrower occupies the Mortgaged Premises as his \n\
      or her Primary Residence. The Borrower is not eligible to receive relocation assistance in \nthe\
      \ following circumstances: \n \n■ The Borrower will receive relocation assistance from a source\
      \ other than Freddie Mac \nor the Servicer, such as an employer, and the amount is equal to or greater\
      \ than \n$7,500. If the Borrower will receive relocation assistance from a source other than \n\
      Freddie Mac or the Servicer and the amount is less than $7,500, the Servicer must \nreduce the amount\
      \ of Freddie Mac’s relocation assistance by the amount received \nfrom the other source. \n \n■\
      \ The Servicer determines that the Borrower’s Cash Reserves exceed $10,000 or his or \nher HTI ratio\
      \ is less than or equal to 40%, regardless of whether the Borrower makes \na contribution. If the\
      \ Servicer believes such a Borrower is experiencing financial \ncircumstances necessitating relocation\
      \ assistance, the Servicer may submit the file to \nFreddie Mac. Refer to Section 9208.1(b) regarding\
      \ the details for submission to \n \n■ The Borrower is subject to PCS orders and receives government\
      \ assistance with the \nrelocation \n \n\n \n \n \nPage 9208-18 \nExample: If the Borrower receives\
      \ $1,000 of relocation assistance from his or her \nemployer, Freddie Mac may provide the Borrower\
      \ with an additional $6,500 of relocation \nassistance. \n \nThe Servicer must instruct the settlement\
      \ agent to pay the Freddie Mac relocation \nassistance from sale proceeds and itemize it and any\
      \ relocation assistance received from \nother entities separately on the Settlement/Closing Disclosure\
      \ Statement to the extent that \nthe Servicer is aware of other relocation or transition assistance\
      \ payments being paid as \npart of the short sale transaction. \n \nIn addition to the relocation\
      \ assistance offered by Freddie Mac, the Servicer may in its \ndiscretion offer the Borrower an\
      \ additional financial incentive to complete the short sale. \nAny relocation assistance provided\
      \ by the Servicer will be in addition to the relocation \nassistance amount provided by Freddie\
      \ Mac and the Servicer’s assistance amount does \nnot have to be subtracted from the assistance\
      \ amount Freddie Mac will pay. If the \nServicer does offer its own financial assistance, it must\
      \ not deduct this payment from the \nproceeds of the short sale and must provide the incentive from\
      \ its own funds, either by \npayment made directly to the Borrower, or through the settlement agent\
      \ closing the short \nsale transaction. Payments made to the Borrower by the Servicer must be reflected\
      \ on the \nSettlement/Closing Disclosure Statement in accordance with applicable law. \n \nThe relocation\
      \ assistance payment may not be applied to other debts secured by the \n9208.2: Property valuation,\
      \ communications, \nprocessing and transaction management for short \nsales (10/08/25) \n \n■ Property\
      \ valuation and minimum net proceeds for short sales \n \n■ Communication timelines for short sales\
      \ \n \n■ Short sale transaction and processing requirements \n \n(a) Property valuation and minimum\
      \ net proceeds for short sales \n \n(i) When to obtain a property valuation \n \nIf the Servicer\
      \ has evaluated the Borrower for all other alternatives to foreclosure in \naccordance with Freddie\
      \ Mac’s evaluation hierarchy set forth in Section 9201.2 and \nbelieves that the Borrower meets\
      \ the eligibility requirements for a Freddie Mac Standard \n\n \n \n \nPage 9208-19 \nShort Sale\
      \ (“short sale”), then, unless otherwise instructed by Freddie Mac, the Servicer \nmust obtain an\
      \ interior property valuation in accordance with the Guide, if the Borrower: \n \n1. Has listed\
      \ the Mortgaged Premises for sale; or \n \n2. Has expressed interest in a short sale; or \n \n3.\
      \ Notifies the Servicer of a purchase offer on the Mortgaged Premises \n \nThe Servicer must obtain\
      \ a short sale property value from Freddie Mac, as applicable, \nwhen one of the above situations\
      \ occurs. An evaluation for a Borrower contribution \nshould not delay the Servicer’s request for\
      \ a property valuation. \n \n(ii) How to obtain a short sale property value and minimum net proceeds\
      \ \n \nWith the exception of Mortgages secured by properties subject to resale restrictions (in\
      \ \naccordance with Chapter 4406, 4502 or 4504, as applicable), the Servicer must submit a \nrequest\
      \ to Freddie Mac for the short sale property value and the minimum net proceeds \nvia the “Obtain\
      \ Valuation” tab in Freddie Mac Real Estate Valuation and Pricing tool \nwhen considering a Borrower\
      \ for a short sale. \n \nThe Servicer must advise the Borrower that the person evaluating the Mortgaged\
      \ \nPremises must be given interior access and that the Borrower must otherwise cooperate \nwith\
      \ the inspection. \n \nAn “estimated market value” of the Mortgaged Premises and the “minimum net\
      \ \nproceeds” as determined by Freddie Mac will be returned by the Real Estate Valuation \nand Pricing\
      \ tool (see Exhibit 88, Servicing Tools) with a “good through date” indicating \nthe expiration\
      \ date of the property value and minimum net proceeds amount. If the \nServicer is unable to render\
      \ an evaluation decision on a purchase offer prior to the good \nthrough date, a new property value\
      \ and minimum net proceeds must be obtained via the \nReal Estate Valuation and Pricing tool to\
      \ evaluate the purchase offer. \n \nRefer to Chapter 2404 for terms and requirements for using Freddie\
      \ Mac’s Servicing \nTools. \n \nNote: If the Servicer enters a short sale into Resolve® without\
      \ obtaining a property value \nor minimum net proceeds or if those values have expired, Resolve\
      \ will obtain the \nproperty value and minimum net proceeds automatically. \n \n(iii)Listing price\
      \ guidance \n \nIf a short sale property value and minimum net proceeds were obtained, the Servicer\
      \ \nshould provide listing price guidance to the Borrower or real estate broker based upon the \n\
      property value obtained from Freddie Mac. However, the Servicer must inform the \nBorrower or real\
      \ estate broker of the following when providing such guidance: \n\n \n \n \nPage 9208-20 \n \n■\
      \ The value provided is only guidance. Such guidance should not be presented as the \nrequired listing\
      \ price to the Borrower or real estate broker. The Borrower and the real \nestate broker are responsible\
      \ for determining the list price for the Mortgaged \n \n■ All transactions must meet the minimum\
      \ net proceeds required by Freddie Mac \nregardless of the value provided. An offer at or above\
      \ the value provided by the \nServicer may not necessarily result in an acceptable level of net\
      \ proceeds. \n \nIn addition to providing listing price guidance, Servicers must communicate a list\
      \ of \nacceptable closing expense categories to the Borrower and the real estate broker as \ndescribed\
      \ in Section 9208.2(c)(iv). \n \n(iv) Mortgages secured by properties subject to resale restrictions\
      \ \n \nServicers are not required to obtain short sale property values and minimum net proceeds\
      \ \non Mortgages secured by properties subject to with resale restrictions (in accordance with \n\
      Chapter 4406, 4502 or 4504, as applicable). If the Servicer is considering a Borrower for \na short\
      \ sale on a Mortgage secured by a property subject to resale restrictions, then the \nServicer is\
      \ not delegated to approve the short sale, and the file must be sent to Freddie \nMac. Refer to\
      \ Section 9208.1(b) regarding submission of a short sale to Freddie Mac. \n \nFor listing price\
      \ guidance and acceptable closing expense categories that may be specific \nto Mortgages secured\
      \ by properties subject to resale restrictions, Servicers must refer to \nthe applicable resale\
      \ restrictions. \n \n(b) Communication timelines for short sales \n \nThe following chart sets forth\
      \ the required response times when a short sale is being \nconsidered as a solution to the Delinquency\
      \ for either a Mortgage that is not secured by a \nPrimary Residence or a Mortgage that is secured\
      \ by a Primary Residence and the Servicer is \nnot evaluating the Borrower for a short sale using\
      \ the First Complete Borrower Response \nPackage received more than 37 days prior to a scheduled\
      \ foreclosure sale date. \n \nShort sale: Submission of purchase offer and Servicer decision \n\
      5 Business Days \nThe Servicer must acknowledge receipt of the purchase \noffer within five Business\
      \ Days. \nIf the purchase offer is submitted with insufficient \ninformation, the Servicer must\
      \ notify the Borrower of the \ninformation needed to evaluate the offer within five \nBusiness Days\
      \ of receipt of the offer. \n\n \n \n \nPage 9208-21 \nShort sale: Submission of purchase offer\
      \ and Servicer decision \n30 days \nThe Servicer must respond to the Borrower with a purchase \n\
      decision within 30 days of receipt of the purchase offer. If \nthe purchase offer does not meet\
      \ Freddie Mac’s minimum \nnet proceeds threshold and/or is denied by Freddie Mac, \nthe Servicer\
      \ must notify the Borrower and include an \nacceptable counteroffer in its response. \nNote: In\
      \ the event that a Borrower has submitted a \ncomplete Borrower Response Package and a purchase\
      \ offer \nsimultaneously, the response period for evaluating both the \ncomplete Borrower Response\
      \ Package and the purchase \noffer is the same as outlined in this section (i.e., provide a \ndecision\
      \ within 30 days following receipt of purchase offer \nand Borrower Response Package). \nShort sale:\
      \ Counteroffers (if purchase offer is less than the minimum net \nproceeds) \n5 Business Days \n\
      Borrower must respond to the Servicer’s counteroffer \nwithin five Business Days of the date the\
      \ counteroffer is \nreceived. \n10 Business Days \nServicer must respond to the Borrower within\
      \ 10 Business \nDays of receipt of the Borrower’s response to the \ncounteroffer \n \nThe Servicer\
      \ must maintain documentation of all communications to and from the Borrower, \nwhether verbal or\
      \ written, and including status updates, either in the Mortgage file or in the \nServicer’s Servicing\
      \ system. In addition, the Servicer must provide the information to \nFreddie Mac for review upon\
      \ request. \n \nRefer to Section 9101.3 for foreclosure suspension requirements when the First Complete\
      \ \nBorrower Response Package is received more than 37 days prior to a scheduled foreclosure \n\
      sale. Refer to Sections 9102.5(c) and 9301.7(a) for foreclosure suspension requirements for a \n\
      Mortgage that has been referred to foreclosure and is either not secured by a Primary \nResidence\
      \ or secured by a Primary Residence and the Servicer is not evaluating the Borrower \nfor a short\
      \ sale using the First Complete Borrower Response Package received more than 37 \ndays prior to\
      \ a scheduled foreclosure sale date. \n \n(c) Short sale transaction and processing requirements\
      \ \n \n\n \n \n \nPage 9208-22 \nIn order for the short sale to be approved by either the Servicer\
      \ or Freddie Mac, the short sale \ntransaction must meet the following requirements: \n \n(i) Sales\
      \ proceeds \n \nThe Servicer must review the executed sales contract and preliminary Settlement/Closing\
      \ \nDisclosure Statement to ensure the minimum net proceeds amount provided by Freddie \nMac via\
      \ the Freddie Mac Real Estate Valuation and Pricing tool, if applicable, will result \nfrom the\
      \ sale unless otherwise permitted by Freddie Mac in writing. \n \nThe Borrower must not receive\
      \ any proceeds from the sale of the Mortgaged Premises \nother than relocation assistance paid to\
      \ the Borrower in accordance with the requirements \nof Section 9208.1(d) and reflected on the Settlement/Closing\
      \ Disclosure Statement. \n \n(ii) Determining if the transaction meets the minimum net proceeds\
      \ \n \nIf applicable, when determining whether the transaction meets or exceeds the minimum \nnet\
      \ proceeds as provided by the Real Estate Valuation and Pricing tool, the Servicer must \ndeduct\
      \ from the gross sales price the following allowable transaction costs up to the \nmaximum amount\
      \ as described below: \n \n■ Allowable Closing Costs reasonable and customary for the jurisdiction\
      \ where the \nMortgage Premises is located, including: \n \n❑ Property taxes and other assessments\
      \ prorated to the date of closing \n \n❑ Typical and customary local and state transfer taxes and\
      \ stamps \n \n❑ Title and settlement charges typically paid by the seller \n \n❑ Seller’s attorney\
      \ fees for settlement services typically provided by a title or \nescrow company \n \n❑ Wood-destroying\
      \ pest inspections and treatment, when required by local law or \ncustom \n \n❑ Past-due condominium/homeowners\
      \ association (HOA) or Cooperative \nCooperative Share Loans), Condominium Unit maintenance fees\
      \ or Cooperative \nUnit Maintenance Fees and ground rents, as applicable \n \n■ The following transaction\
      \ costs are subject to more specific parameters, as indicated \n \n❑ Real estate broker commission,\
      \ including any short sale negotiation fees, if \napplicable, as described in Sections 9208.2(c)(v)\
      \ and 9208.2(c)(vi) \n\n \n \n \nPage 9208-23 \n \n❑ Borrower incentives (if applicable), as described\
      \ in Section 9208.1(d) \n \n❑ Payment to subordinate mortgage holders (if applicable), as provided\
      \ in Section \n9208.2(c)(iii) \n \n❑ Any other amounts authorized by Freddie Mac \n \n■ The following\
      \ transaction costs are prohibited by Freddie Mac: \n \n❑ Real estate sales commissions paid to\
      \ the Borrower or the purchaser \n \n❑ Buyer’s discount points or mortgage loan origination costs;\
      \ or \n \n❑ Fees that are not usual or customary to the local market \n \n■ Borrower contributions\
      \ must not be counted toward the minimum net proceeds \n \nExample: If the purchase offer submitted\
      \ by the Borrower/real estate broker is $100,000, \nthen the Servicer will determine whether the\
      \ minimum net proceeds are met as follows: \n \n$100,000 \n(Gross sales price) \n-$9,000 \n(Allowable\
      \ Closing Costs including real estate commission) \n-$6,000 \n(Payment to subordinate mortgage holders)\
      \ \n-$7,500 \n(Borrower relocation assistance) \n_________________________________________ \n $77,500\
      \ \n(Determine whether this amount meets or exceeds the minimum net \nproceeds provided in the Real\
      \ Estate Valuation and Pricing tool) \n \nThe Servicer must not disclose the minimum net proceeds\
      \ to any party, if applicable, \nincluding, but not limited to, the Borrower, the real estate broker\
      \ and any prospective \nbuyer, except as authorized by Freddie Mac. \n \nAs applicable, the Servicer\
      \ must ensure that the transaction meets or exceeds the \nminimum net proceeds amount prior to approving\
      \ a short sale transaction. If the \nminimum net proceeds are not met, the Servicer must provide\
      \ a counteroffer for an \namount that would meet the minimum net proceeds in accordance with the\
      \ response time \nframes set forth in Section 9208.2(b). Under no circumstances is the Servicer\
      \ delegated to \napprove a transaction if the amount to be remitted to Freddie Mac at closing is\
      \ less than \nthe minimum net proceeds amount, if applicable. If the transaction does not meet the\
      \ \nminimum net proceeds established by Freddie Mac, the Servicer may submit the \nMortgage to Freddie\
      \ Mac for further review. (Refer to Section 9208.1(b) for more \ninformation regarding the requirements\
      \ for submitting a recommendation to Freddie \nMac.) \n \n(iii)Payments to subordinate mortgage\
      \ holders \n\n \n \n \nPage 9208-24 \n \nFor each short sale completed in accordance with Sections\
      \ 9208.1 through 9208.3(a), the \nServicer may authorize the settlement agent closing the short\
      \ sale transaction to pay \nsubordinate mortgage holders an aggregate amount of six thousand dollars\
      \ ($6,000.00) \nfrom sales proceeds at the same time that all other payments, including the payoff\
      \ to \nFreddie Mac, are disbursed by the settlement agent. The subordinate mortgage holders \nmay\
      \ not receive any other payments, in cash, promissory note or otherwise, from the \nBorrower in\
      \ connection with approval of the short sale. \n \nIf there are multiple subordinate mortgage holders,\
      \ the Servicer has the discretion to \ndivide the subordinate mortgage payment among them so as\
      \ to maximize the chances that \nall subordinate mortgage holders will approve the short sale. \n\
      \ \nPayment of any amount to subordinate mortgage holders is contingent upon agreement by \nall\
      \ mortgage holders to release their Mortgages and, if they are accepting a payment from \nFreddie\
      \ Mac, extinguish the indebtedness secured by the Mortgaged Premises. In \naddition, subordinate\
      \ mortgage holders accepting payment from Freddie Mac must agree \nin writing to waive all rights\
      \ to seek a deficiency judgment against the Borrower. If a \nsubordinate mortgage holder releases\
      \ its Mortgage to allow the short sale to close but \ndoes not extinguish the indebtedness, the\
      \ mortgage holder will not receive a payment \nfrom Freddie Mac. Regardless of whether payment is\
      \ made to a subordinate mortgage \nholder, the Servicer must obtain written commitment from the\
      \ subordinate mortgage \nholder(s) to release the Mortgage(s). \n \nAll payments made to subordinate\
      \ mortgage holders must be documented on the \nSettlement/Closing Disclosure Statement in accordance\
      \ with applicable law. The Servicer \nmust have established written policies governing how subordinate\
      \ mortgage payments are \npaid and the Servicer must provide evidence to Borrowers that the subordinate\
      \ mortgage \nholder has agreed to accept the payment, extinguish the secured indebtedness and waive\
      \ \nall rights to seek a deficiency judgment against the Borrower. \n \nNote: Only Mortgages, deeds\
      \ of trust or security deeds recorded in the land records and \nconstituting a valid lien against\
      \ the property are eligible for a payment from Freddie Mac. \nAny and all other types of liens,\
      \ including, but not limited to, judgments, mechanic’s and \nmaterialman’s liens and common interest\
      \ association liens, are not eligible for the \nsubordinate mortgage payment. \n \n(iv) Closing\
      \ Costs \n \nThe Servicer is permitted to deduct reasonable Closing Costs customarily paid by a\
      \ seller \nin the jurisdiction where the Mortgaged Premises are located. \n \n(v) Real estate broker\
      \ commissions \n \nUnless a real estate broker’s sales commission exceeds 6% of the Mortgaged Premises\
      \ \nsales price, the Servicer must not, as a condition of the Servicer’s acceptance of an offer,\
      \ \n\n \n \n \nPage 9208-25 \nrenegotiate the real estate broker’s sales commission to an amount\
      \ that is lower than the \namount that was originally agreed upon between the broker and the Borrower.\
      \ In the \nevent the sales commission exceeds 6%, the Servicer must renegotiate the commission to\
      \ \nlimit it to 6% of the Mortgaged Premises’ sales price. \n \nNeither the Borrower nor the purchaser\
      \ may receive a commission from the sale of the \n \n(vi) Short sale negotiation fees \n \nFees\
      \ paid to any party to evaluate, negotiate or process a short sale with the Servicer, \nwhich are\
      \ commonly referred to as “short sale negotiation fees,” “short sale processing \nfees,” “marketing\
      \ fees,” or “administrative fees,” may be included as part of the real \nestate broker’s commission\
      \ at the discretion of the real estate broker. Negotiation fees \nmust not be deducted from sales\
      \ proceeds or charged to the Borrower. Additionally, \nneither the Servicer nor its agents may charge\
      \ Freddie Mac or the Borrower, either \ndirectly or indirectly, any fee whatsoever in connection\
      \ with processing a short sale on \nany Mortgage. Standard and customary real estate commissions\
      \ and settlement service \nfees agreed to by the Borrower and paid to the real estate brokerage\
      \ and settlement agent \nare not prohibited. \n \n(vii) Waiver of Escrow funds or prepaid items\
      \ \n \nThe Borrower must waive reimbursement of any Escrow, buydown funds or prepaid \nitems and\
      \ assign any insurance proceeds to Freddie Mac, if applicable. \n \n(viii) Short sale affidavit\
      \ \n \nThe Servicer must obtain a short sale affidavit in which the parties to the transaction \n\
      attest that the sale is an arm’s length transaction. An arm’s length transaction is a \ntransaction\
      \ between parties who are unrelated and unaffiliated by family, marriage or \ncommercial enterprise,\
      \ other than the purchase and sale of the Mortgaged Premises \nbetween the Borrower(s) and the purchaser(s)\
      \ that is the specific subject of the proposed \nshort sale as disclosed to the Servicer. This affidavit\
      \ must be executed before or at the \ntime of closing of the sale of the Mortgaged Premises by all\
      \ Borrower(s), purchaser(s), \nreal estate brokers representing any of the parties, the escrow/closing\
      \ agent and the \ntransaction facilitator (if any). Each signatory must certify under penalty of\
      \ perjury that to \nthe best of his or her knowledge and belief: \n \n■ The sale of the Mortgaged\
      \ Premises is an arm’s length transaction between parties \nwho are unrelated and unaffiliated by\
      \ family, marriage or commercial enterprise \n \n■ There are no agreements, understandings or contracts\
      \ between the parties that the \nBorrower will remain in the Mortgaged Premises as a tenant or later\
      \ obtain title or \nownership of the Mortgaged Premises, except if the Borrower is permitted to\
      \ remain \n\n \n \n \nPage 9208-26 \nas a tenant on the Mortgaged Premises for a short term, but\
      \ no longer than ninety (90) \ndays, in order to facilitate relocation \n \n■ Neither the Borrower(s)\
      \ nor the purchaser(s) will receive any funds or commissions \nfrom the sale of the Mortgaged Premises.\
      \ The Borrower may receive a relocation \nassistance payment if it is offered by the Servicer and\
      \ reflected on the \nSettlement/Closing Disclosure Statement. \n \n■ The seller(s)/listing agent\
      \ has presented all offers for the purchase of the Mortgaged \nPremises to the Borrower and no offers\
      \ have been held, concealed or delayed due to \naction or inaction by a real estate agent \n \n\
      ■ There are no agreements, understandings or contracts relating to the current sale or \nsubsequent\
      \ sale of the Mortgaged Premises that have not been disclosed to the \n \n■ All amounts to be paid\
      \ to any party, including holders of other liens on the Mortgaged \nPremises, in connection with\
      \ the short sale transaction have been disclosed to and \napproved by the Servicer and will be reflected\
      \ on the Settlement/Closing Disclosure \n \n■ Each signatory understands, agrees and intends that\
      \ the Servicer and Freddie Mac are \nrelying upon the statements made in the affidavit as consideration\
      \ for the reduction of \nthe payoff amount of the Mortgage and agreement to the sale of the Mortgaged\
      \ \n \n■ A signatory who makes a negligent or intentional misrepresentation agrees to \nindemnify\
      \ the Servicer and Freddie Mac for any and all loss resulting from the \nmisrepresentation, including,\
      \ but not limited to, repayment of the amount of the \nreduced payoff of the Mortgage \n \n■ The\
      \ certification will survive the closing of the transaction; and \n \n■ Each signatory understands\
      \ that a misrepresentation may subject the party making the \nmisrepresentation to civil and/or\
      \ criminal liability \n \nThe affidavit must contain the name of the Servicer, the Servicer loan\
      \ number for the \nsubject Mortgage, the property address of the Mortgaged Premises and the date\
      \ the sales \ncontract that is the subject of the short sale was ratified by the parties. \n \n\
      The affidavit must contain the printed name and signature of each signatory, and all \nsignatures\
      \ to the affidavit must be dated. The signature of a real estate agent or settlement \nagent signing\
      \ as a representative for the brokerage or settlement service provider is \nacceptable so long as\
      \ the representative capacity is clearly identified. The Servicer may \nmodify and integrate its\
      \ own requirements into the affidavit so long as it contains the \nminimum requirements contained\
      \ in this section. The short sale affidavit must be a \n\n \n \n \nPage 9208-27 \nseparately identifiable\
      \ document, distinct from other closing or pre-closing documents, \nsuch as the sales contract.\
      \ (See Exhibit 97, Short Sale Affidavit, for an example of a short \nsale affidavit.) \n \nIf the\
      \ closing agent is prohibited from signing the affidavit by applicable local, State or \nfederal\
      \ law, the Servicer may waive the closing agent’s signature requirement upon \nrequest. The Servicer\
      \ must condition the waiver upon the closing agent’s agreement that \nit will not also act as the\
      \ closing agent on a subsequent transaction involving the \nMortgaged Premises within one year of\
      \ closing the short sale transaction. In all other \ncircumstances, signatures from all parties\
      \ identified above are required as a condition to \nFreddie Mac’s agreement to accept a short sale\
      \ of the Mortgage. \n \nIf a party reveals an agreement, understanding or contract relating to the\
      \ current sale or \nsubsequent sale of the Mortgaged Premises that indicates the transaction is\
      \ not an arm’s \nlength transaction or otherwise indicates bad faith, collusion or fraud on the\
      \ part of the \nparties, the Servicer must withdraw agreement to the short sale and immediately\
      \ notify \nFreddie Mac using Freddie Mac’s Tip Referral Tool, accessible via Freddie Mac \nGateway.\
      \ \n \n(ix) Re-sale deed restriction \n \nThe Servicer must instruct the settlement agent to ensure\
      \ that the deed conveying the \nMortgaged Premises from the Borrower to the purchaser contains a\
      \ provision to restrict \nany re-sale of the Mortgaged Premises for 30 days following the short\
      \ sale closing and to \nrestrict re-sales of greater than 120% of the short sale’s sales price for\
      \ the period \nbeginning 31 days after the short sale closing and ending 90 days from the short\
      \ sale \n \nThe deed must contain the following provision: \n \nGrantee herein is prohibited from\
      \ conveying captioned property for any sales price for a \nperiod of 30 days from [DATE – short\
      \ sale closing]. After this 30-day period, Grantee is \nfurther prohibited from conveying the property\
      \ for a sales price greater than $ (120% of \nshort sale price) until 90 days from [DATE – short\
      \ sale closing]. These restrictions shall \nrun with the land and are not personal to the Grantee.\
      \ \n \nThe provided language may be amended as necessary to comply with applicable law. \n \nNote:\
      \ If the Servicer believes a re-sale restriction is not appropriate for a particular short \nsale\
      \ transaction (such as a short sale transaction under the Homeowners Assistance \nProgram provided\
      \ by the U.S. Department of Defense), then the Servicer must submit the \nMortgage to Freddie Mac\
      \ for review prior to instructing the settlement agent to insert the \nabove referenced deed provision.\
      \ The Servicer’s submission must include a thorough \nexplanation of the reason(s) why it is requesting\
      \ additional review. \n \n\n \n \n \nPage 9208-28 \n(x) Resolve \n \nServices must use Resolve to\
      \ submit short sale transactions on Freddie Mac-owned \nMortgages. Each Servicer must use Resolve\
      \ in accordance with (A) the requirements in \nthis Chapter, (B) the short sale and other instructions\
      \ provided in Resolve Online Help \nand any other Documentation and (C) any other applicable provisions\
      \ of the Guide, \nincluding Sections 2401.1 and 2404.2. \n \nIf a Servicer is unable to complete\
      \ a submission via Resolve, the Servicer should contact \nCustomer Service at 800-FREDDIE. \n \n\
      (xi) Mortgage insurance \n \nThe Servicer must approve and process a short sale in compliance with\
      \ all requirements \nof applicable mortgage insurance policies so as to preserve and not to impair\
      \ existing \nmortgage insurance coverage, if any. When approving and processing a short sale, unless\
      \ \nFreddie Mac has delegations of authority with the MI, the Servicer must either obtain the \n\
      applicable MI’s approval of the terms of each short sale on a case-by-case basis or ensure \nthat\
      \ the applicable MI has provided a delegation of authority to the Servicer that applies \nto the\
      \ requested short sale. \n \nIf the Servicer is notified that the MI will curtail or deny a claim\
      \ for any reason, \nincluding, but not limited to, failure of the Servicer to comply with mortgage\
      \ insurance \nconditions such as payment of a Borrower contribution, the Servicer may not approve\
      \ the \nshort sale; however, the Servicer must submit the proposed short sale to Freddie Mac. \n\
      9208.3: Closing, reporting and compliance for short \nsales (12/17/25) \n \n■ Closing, reporting,\
      \ drafting and remittance requirements for short sales and make-whole \npreforeclosure sales \n\
      \ \n■ Fraudulent transactions related to short sales \n \n(a) Closing, reporting, drafting and remittance\
      \ requirements for short sales and makewhole preforeclosure sales \n \n(i) Servicer review of the\
      \ Freddie Mac Standard Short Sale (“short sale”) closing \n \n \n\n \n \n \nPage 9208-29 \n1. Prior\
      \ to and outside of the transaction, pay any delinquent property taxes, ground \nrents and assessments\
      \ or other charges that are or may become First Liens on the \nproperty or that if not paid would\
      \ result in the subordination of Freddie Mac’s \ninterests. (See Section 9301.6(e) regarding expenses\
      \ that may become First Liens on \nthe property.) Freddie Mac will reimburse the Servicer for these\
      \ expenses in \naccordance with Chapter 9701. \n \n2. Ensure that the Borrower pays all cash contributions\
      \ in the form of cash or certified \nfunds at settlement \n \n3. Ensure that the title is conveyed\
      \ directly from the Borrower to the buyer \n \n4. Complete the short sale closing within 60 days\
      \ of approving the purchase offer \n \n5. Waive its rights to any accrued late fees or property\
      \ inspection costs \n \n6. Maintain the original short sale affidavit in the Mortgage file in accordance\
      \ with the \nrequirements of Section 3302.1(c) and provide Freddie Mac with a copy of the short\
      \ \nsale affidavit upon request \n \n7. Review the Settlement/Closing Disclosure Statement prior\
      \ to closing to ensure proper \ntransfer of title directly from the Borrower to the buyer \n \n\
      8. Review the Settlement/Closing Disclosure Statement and deed within five Business \nDays after\
      \ closing to validate compliance with this chapter and the Servicer’s approval \ninstructions, including:\
      \ \n \n■ The name of the buyer on the Settlement/Closing Disclosure Statement is the \nsame as shown\
      \ on the sales contract \n \n■ The Settlement/Closing Disclosure Statement is consistent with the\
      \ closing \ninstructions, especially regarding ineligible transfer of title to related parties;\
      \ and \n \n■ The deed will be recorded in the name of the buyer and contains resale restriction\
      \ \nlanguage as required in Section 9208.2(c)(ix) \n \n9. For Cooperative Share Loans, comply with\
      \ the requirements in Section 8801.3(c) \n \n(ii) Reporting the transaction, remitting the proceeds\
      \ and submitting the settlement \n \nTo close a short sale or a make-whole preforeclosure sale in\
      \ Freddie Mac’s systems, \ncomplete the following accounting, reporting and remittance steps: \n\
      \ \n1. Report the Mortgage as a “Short Sale/Charge-off/Make-whole” via the Freddie Mac \nLoan Level\
      \ Reporting tool (see Exhibit 88, Servicing Tools) by the second Business \n\n \n \n \nPage 9208-30\
      \ \nDay after the Servicer receives the settlement proceeds. When reporting, ensure that \n \n■\
      \ Ending UPB is zero \n \n■ Principal collected is the ending balance of the Mortgage (not the proceeds\
      \ \ncollected from the sale of the property) \n \n■ Payoff date is the date the Servicer received\
      \ the settlement proceeds \n \n \nFreddie Mac will draft the full UPB plus exception interest. Refer\
      \ to Section \n8303.3(c) for details on payoff requirements and charge-off adjustments. See Sections\
      \ \n8303.3(c) and 8303.3(d) for additional requirements related to short sale reporting and \ndrafting.\
      \ \n \n2. Complete the “Short Sales Settlement” screen in Resolve® and transmit the data to \nFreddie\
      \ Mac. In circumstances where a short sale settlement requires a manual \nsettlement review by Freddie\
      \ Mac, Freddie Mac may request copies of documentation \nincluding, but not limited to, the following:\
      \ \n \n■ A copy of the Settlement/Closing Disclosure Statement \n \n■ Copies of the sales contract\
      \ and any addenda to the sales contract \n \n(iii)Make-whole preforeclosure sale \n \nTo notify\
      \ Freddie Mac that the Servicer has approved a make-whole preforeclosure sale, \nthe Servicer must\
      \ submit the following to Freddie Mac (see Directory 5): \n \n■ Completed and signed Form 710, Mortgage\
      \ Assistance Application (or other \ndocumentation as permitted in Section 9208.1(c)) \n \n■ Copy\
      \ of the executed sales contract \n \n■ Copy of the MI’s approval letter (if applicable and if not\
      \ previously delegated by the \nMI) \n \n■ A breakdown of the transaction to show how the sale of\
      \ the Mortgaged Premises plus \nany other proceeds will result in a total satisfaction of the debt\
      \ \n \nUpon receipt of the required documentation as described above, Freddie Mac will review \n\
      the file and contact the Servicer with a decision in Resolve based on the Servicer’s input. \nOnce\
      \ the Servicer receives the decision, it must process the file accordingly and report \nand close\
      \ the transaction in accordance with the requirements in this Section 9208.3(a). \n\n \n \n \nPage\
      \ 9208-31 \n \nFreddie Mac will draft the full UPB plus exception interest. Refer to Section 8303.3(d)\
      \ \nfor details on payoff requirements and charge-off adjustments. \n \n(iv) Charging off the deficiency\
      \ \n \nThe amount that Freddie Mac has determined to be charged off will be reflected on the \n\
      Draft Report. The Servicer must review the Draft Report and report any discrepancies \nbetween its\
      \ records and the amount on the Draft Report to Freddie Mac via the Freddie \nMac Servicing Data\
      \ Corrections tool (see Exhibit 88) within the same Accounting Cycle \nin which Freddie Mac posts\
      \ the amount to the Draft Report. Servicers may access the \nDraft Report through the Cash Manager\
      \ tool (see Exhibit 88). \n \nvariance and upload a copy of the Settlement/Closing Disclosure Statement\
      \ and of the \nsales contract and any addenda to the sales contract in the Servicing Data Corrections\
      \ tool \nto support the request and explain why the short sale and any related deficiency was not\
      \ \ninitially settled with data elements matching these documents. \n \nDiscrepancies submitted\
      \ after the Accounting Cycle in which the initial adjustment is \nposted to the Draft Report closes\
      \ will be processed at Freddie Mac’s discretion and may \nbe subject to a contract noncompliance\
      \ and contract change compensatory fee (see \nSection 8303.5(i)). If the postsettlement correction\
      \ request is denied, the Servicer may be \nliable for any additional losses. Additionally, Freddie\
      \ Mac may recover any workout \nincentives that were paid. \n \n(v) Remitting additional proceeds\
      \ \n \nIf there are any proceeds that were not included in the proceeds check (e.g., property \n\
      insurance premium rebate, refunded Escrow advance prepayments), remit the full amount \nof such\
      \ proceeds to Freddie Mac by wire transfer or check and send it to Freddie Mac \n(see Directory\
      \ 5) within five Business Days of receipt of the proceeds. \n \n(vi) Release of deficiency if participants\
      \ have acted in good faith and in compliance with \nall applicable law \n \nIf the Borrower has\
      \ acted in good faith and in compliance with the Guide and all \napplicable local, State and federal\
      \ law, then Freddie Mac will not pursue the Borrower for \nthe entire amount owed under the current\
      \ Mortgage. Freddie Mac will accept the \nproceeds of sale and the cash contribution by the Borrower\
      \ and the Servicer must instruct \nthe closing agent to release the lien on the Mortgaged Premises\
      \ and mark the previous \nNote as canceled. For a short sale completed with respect to an eMortgage\
      \ (as defined in \nSection 1402.1(b)), the Servicer must also comply with the requirements in Section\
      \ \n1402.5(c). \n \n\n \n \n \nPage 9208-32 \nHowever, if the Borrower had knowledge of and/or consented\
      \ to a transaction that was \nnot in compliance with the Guide and all applicable local, State and\
      \ federal law, Freddie \nMac reserves its rights to pursue any and all participants including, but\
      \ not limited to, the \nBorrower, for the full amount owed under the Mortgage, the amount of any\
      \ other loss or \ndamage Freddie Mac may have suffered and other costs and expenses, including,\
      \ but not \nlimited to, attorney fees. Failure to fully execute and provide the short sale affidavit\
      \ \nrequired by Section 9208.2(c) is considered bad faith and noncompliance with the Guide. \n \n\
      (vii) Requesting reimbursement \n \nRequest reimbursement for any applicable expenses in accordance\
      \ with the requirements \nin Chapter 9701. For claim submissions on Mortgages insured by the FHA\
      \ or guaranteed \nby the VA or RHS not subject to recourse or indemnification, expense reimbursement\
      \ \nwill occur after Freddie Mac receives the claim payment from the applicable entity and \ndetermines\
      \ that all other requirements for reimbursement have been satisfied. (Refer to \nSection 9603.2(a)\
      \ on FHA/VA/RHS claim filing and Section 9603.2(d) on receipt of \nclaim payment.) \n \n(b) Fraudulent\
      \ transactions related to short sales \n \nAny party to the transaction who engages in fraudulent\
      \ activity with respect to a short sale \ntransaction may be added to the Freddie Mac Exclusionary\
      \ List, barred from future \ninvolvement in Freddie Mac business and reported to applicable regulatory\
      \ authorities. \n \nSee Chapter 3201 for more information on Freddie Mac requirements for fraud\
      \ prevention, \ndetection and reporting. \n\n \n \n \n \n \nPage 9209-1 \nChapter 9209: Freddie\
      \ Mac Standard Deed-in9209.1: Deed-in-lieu of foreclosure eligibility \nrequirements and Servicer\
      \ approval authority \nA Freddie Mac Standard Deed-in-Lieu of Foreclosure (“deed-in-lieu of foreclosure”)\
      \ is a \nBorrower’s voluntary conveyance of clear and marketable title to the property to Freddie\
      \ Mac in \nexchange for a discharge of debt. \n \n \n■ Eligibility requirements for a deed-in-lieu\
      \ of foreclosure \n \n■ Servicer approval authority \n \n■ Property requirements \n \n■ Submitting\
      \ a deed-in-lieu of foreclosure recommendation to Freddie Mac \n \nServicers must use the Resolve®\
      \ user interface (UI) to submit a deed-in-lieu of foreclosure \nrecommendation to Freddie Mac. Servicers\
      \ that elect to submit deed-in-lieu of foreclosure \nrecommendations via the Resolve UI should refer\
      \ to Resolve Online Help for details on the \n \nIf the Borrower’s eligible hardship is permanent\
      \ or long term and neither a home retention \nalternative to foreclosure nor a Freddie Mac Standard\
      \ Short Sale (“short sale”) is a viable \nsolution to the Delinquency or imminent Delinquency, then\
      \ the Servicer must determine if the \nBorrower meets the eligibility requirements for a deed-in-lieu\
      \ of foreclosure. The Servicer must \nevaluate the Borrower for a deed-in-lieu of foreclosure under\
      \ this chapter once the Servicer has \notherwise complied with the evaluation hierarchy in Section\
      \ 9201.2. \n \nIf the Mortgage is subject to a recourse agreement, the Mortgage is ineligible for\
      \ a deed-in-lieu \n \nAdditionally, Mortgages for which the Borrower is engaged in litigation related\
      \ to the Mortgage \nor Mortgaged Premises, with the exception of a foreclosure action, are ineligible\
      \ for a deed-inlieu of foreclosure. \n \nIf the Mortgage is an FHA, VA or Guaranteed Rural Housing\
      \ Mortgage, the Servicer must \ncomply with the requirements of the applicable agency when approving\
      \ a deed-in-lieu of \nforeclosure in a manner that ensures continued coverage of the Mortgage. \n\
      \n \n \n \n \n \nPage 9209-2 \n \nThe Servicer must determine the Borrower’s Delinquency status\
      \ for purposes of establishing \neligibility, documentation requirements and Borrower contribution\
      \ requirements in accordance \nwith Sections 9209.1 through 9209.3. The Servicer must use the Delinquency\
      \ status of the \nMortgage on the date the Servicer begins the evaluation of the Borrower for a\
      \ deed-in-lieu of \nforeclosure using the documentation required in Section 9209.2. \n \n(a) Eligibility\
      \ requirements for a deed-in-lieu of foreclosure \n \nEvery Borrower, regardless of Delinquency\
      \ status, is eligible to be considered for a deed-inlieu of foreclosure, provided the following\
      \ requirements are met: \n \n■ Borrowers who do not meet the requirements for a Streamlined Deed-in-Lieu\
      \ of \nForeclosure must be experiencing or have experienced one of the eligible hardships listed\
      \ \nin Section 9202.1(b)(i) \n \n■ The Borrower must be able to convey clear and marketable title\
      \ to the Mortgaged \nPremises to Freddie Mac \n \n■ The Borrower has not acquired a new Mortgage\
      \ in the six months preceding the \nBorrower’s Delinquency or, if the Borrower is current, in the\
      \ six months preceding the \nevaluation of the Borrower for a deed-in-lieu of foreclosure. The Borrower\
      \ is only \npermitted to have obtained a new Mortgage if the Borrower’s eligible hardship was \n\
      distant employment transfer. \n \nIf the debt secured by the Mortgaged Premises has been discharged\
      \ in a bankruptcy \nproceeding filed pursuant to Chapter 7 of the U.S. Bankruptcy Code, the Borrower\
      \ is eligible \nfor a deed-in-lieu of foreclosure regardless of Delinquency, occupancy or property\
      \ type. The \nBorrower must provide the Servicer a copy of the order and accompanying documents\
      \ \nshowing that the debt was discharged. The Servicer must retain those documents in the \n \n\
      A Borrower who is current or less than 60 days delinquent must meet the imminent default \nrequirements\
      \ as described in Section 9209.2(b)(iv). \n \n(b) Servicer approval authority \n \nUnless otherwise\
      \ notified by Freddie Mac, all Servicers are delegated to approve a deed-inlieu of foreclosure that\
      \ meets the eligibility requirements of Section 9209.1(a). \n \nWhen evaluating a Borrower who is\
      \ a service member with Permanent Change of Station \norders and is current or less than 90 days\
      \ delinquent, the Servicer is encouraged to submit a \nrecommendation to Freddie Mac for review\
      \ if the Servicer believes a deed-in-lieu of \nforeclosure is the most appropriate option given\
      \ the Borrower’s circumstances. \n \n\n \n \n \n \n \nPage 9209-3 \nIf a property inspection reveals\
      \ that the property has been poorly maintained, needs major \nrepairs or has structural or foundation\
      \ problems, then the Servicer is not delegated to approve \na deed-in-lieu of foreclosure. However,\
      \ if the Servicer believes a deed-in-lieu of foreclosure \nis still the most appropriate remedy,\
      \ then the Servicer must submit a recommendation to \nFreddie Mac for approval. \n \nServicers must\
      \ refer to the requirements in Sections 8801.3(d) and 9209.1 through 9209.6 for \nadditional circumstances\
      \ where Servicers are not delegated to approve a deed-in-lieu of \n \n(c) Property requirements\
      \ \n \nIf the BPO obtained according to the valuation requirements in Section 9209.5(d) or any \n\
      previous or subsequent Servicer inspection indicates that the Mortgaged Premises has been \npoorly\
      \ maintained, needs major repairs or has structural or foundation problems, the Servicer \nis not\
      \ delegated to approve a deed-in-lieu of foreclosure. However, if the Servicer believes a \ndeed-in-lieu\
      \ of foreclosure is still the most appropriate remedy, then the Servicer must submit \na recommendation\
      \ to Freddie Mac for approval in accordance with Section 9209.1(b). \n \nIn addition, if the Servicer\
      \ has any indication that the Mortgaged Premises contains \nenvironmental contamination or hazardous\
      \ substances, the Servicer is not delegated to \napprove a deed-in-lieu of foreclosure. Examples\
      \ of environmental contamination and \nhazardous substances include: \n \n■ High sulfur building\
      \ content, such as drywall \n \n■ Interior mold \n \n■ Exposed asbestos \n \n■ Exposed or chipping\
      \ lead-based paint \n \n■ Evidence of illegal activity having taken place on the premises, such\
      \ as growing or \nmanufacturing illegal substances \n \n■ Mortgaged Premises is or is part of a\
      \ Superfund site \n \n■ Mortgaged Premises exhibits other conditions that could negatively impact\
      \ the health of \noccupants \n \n(d) Submitting a deed-in-lieu of foreclosure recommendation to\
      \ Freddie Mac \n \nFor situations where a Borrower does not meet the eligibility requirements for\
      \ a deed-in-lieu \nof foreclosure and the Servicer feels a deed-in-lieu of foreclosure may be the\
      \ best option for \naddressing the Delinquency or imminent Delinquency, the Servicer may submit\
      \ an exception \nreview request through Resolve. For Cooperative Share Loans, the additional documentation\
      \ \nlisted in Section 8801.3(d) must be included with the Servicer’s recommendation. \n\n \n \n\
      \ \n \n \nPage 9209-4 \n9209.2: Borrower documentation for deeds-in-lieu of \nforeclosure (10/08/25)\
      \ \n \n■ Borrower documentation \n \n■ Evaluating the Borrower \n \n(a) Borrower documentation \n\
      \ \n(i) Borrower documentation requirements for a deed-in-lieu of foreclosure \n \nBorrower documentation\
      \ requirements for a deed-in-lieu of foreclosure by Delinquency \nIf the Mortgage \nDelinquency\
      \ status at of \nthe time of evaluation is… \nThe Servicer must… \nCurrent or less than 90 days\
      \ \nEvaluate the Borrower based on a complete Borrower \nResponse Package as defined in Section\
      \ 9102.5. \nNote: If the Mortgage is current or less than 60 days \ndelinquent, the Servicer must\
      \ determine that the Borrower's \nmonthly payment is in non-retention imminent default in \naccordance\
      \ with Section 9209.2(b)(iv). \nBetween 90 days and 18 \nmonths delinquent \nEvaluate the Borrower\
      \ based on a complete Borrower \nResponse Package, unless one of the following conditions \napplies:\
      \ \n■ The Borrower failed a Freddie Mac Flex Modification® \nTrial Period Plan within the 12 months\
      \ prior to evaluation \nfor a short sale or deed-in-lieu of foreclosure \n■ The Borrower previously\
      \ received a Freddie Mac Flex \nModification and become 60 days or more delinquent \nwithin the\
      \ first 12 months of the effective date of the \nmodification without curing the Delinquency \n\
      ■ The Borrower previously completed three or more \nmodifications; or \n■ The Borrower received\
      \ a forbearance plan as a result of a \nhardship due to their Mortgaged Premises or places of \n\
      employment being located in an Eligible Disaster Area or \n\n \n \n \n \n \nPage 9209-5 \nCOVID-19\
      \ and became 90 days or more delinquent prior \nto the evaluation for a deed-in-lieu of foreclosure;\
      \ or \n■ The Mortgage is not secured by an Investment Property, \nas identified at origination,\
      \ and the Borrower’s FICO® \nCredit Score is less than or equal to 620 \nIn these cases, the Servicer\
      \ must evaluate the Borrower for a \nStreamlined Deed-in-Lieu of Foreclosure (“Streamlined \nDIL”).\
      \ \nGreater than 18 months \nEvaluate the Borrower for a Streamlined DIL. \nA Streamlined DIL is\
      \ a Standard Deed-in-Lieu of Foreclosure \nwhere the Servicer is not required to obtain the Borrower\
      \ \nResponse Package or to verify an eligible hardship. \n \n(ii) Credit Score requirements \n \n\
      The Borrower’s Credit Score must be no more than 90 days old as of the date the \nServicer evaluates\
      \ the Borrower for a deed-in-lieu of foreclosure. If there is more than \none Borrower on the Mortgage,\
      \ the Servicer must choose one Credit Score that is \nadequately indicative of the credit reputation\
      \ of all Borrowers currently on the Mortgage. \nThe Servicer must first select a single Credit Score\
      \ for each Borrower on the Mortgage. \n \nIf the Servicer obtains multiple Credit Scores for a single\
      \ Borrower, the Servicer must \nuse the middle/lower method to select the single Credit Score for\
      \ that Borrower. If there \nare multiple Borrowers on the Mortgage, the Servicer must determine\
      \ the single Credit \nScore for each Borrower using the method described above. The Servicer must\
      \ then \nselect either the lowest Credit Score across all Borrowers on the Mortgage or the average\
      \ \nCredit Score from all Borrowers’ single scores. Whichever method is used, the Servicer \nmust\
      \ choose the single Credit Score using the same method and procedure for all \nBorrowers and for\
      \ all Mortgages consistent with fair lending laws. \n \nIf during the current period of Delinquency,\
      \ the Borrower was determined eligible for a \nStreamlined Short Sale (refer to Section 9208.1(c)),\
      \ then the Borrower is also eligible for \na Streamlined DIL outlined above, even if the Credit\
      \ Score that was used previously to \ndetermine eligibility for the Streamlined Short Sale is now\
      \ more than 90 days old at the \ntime of the deed-in-lieu of foreclosure evaluation. However, if\
      \ the Borrower has since \n\n \n \n \n \n \nPage 9209-6 \nbrought the Mortgage current, then the\
      \ Borrower is no longer eligible for a Streamlined \nShort Sale or Streamlined DIL and is required\
      \ to submit a complete Borrower Response \nPackage to the Servicer to be evaluated for a deed-in-lieu\
      \ of foreclosure. \n \n(b) Evaluating the Borrower \n \n(i) Evaluating the credit report \n \nThe\
      \ Servicer must obtain a credit report for each Borrower on the Mortgage (or a joint \nreport for\
      \ co-Borrowers). The credit report must be no more than 90 days old as of the \ndate the Servicer\
      \ evaluates the Borrower for a deed-in-lieu of foreclosure. The Servicer \nmust review the credit\
      \ report to verify that the Borrower meets the relevant requirements \nfor a deed-in-lieu of foreclosure\
      \ and to evaluate the Borrower’s ability to make a \ncontribution. \n \n(ii) Verifying occupancy\
      \ \n \nFor Borrowers who are current or less than 60 days delinquent, the Servicer must review \n\
      the credit report to verify that at least one of the Borrowers is occupying the Mortgaged \nPremises\
      \ as a Primary Residence. If the credit report does not indicate that the Mortgaged \nPremises is\
      \ the Primary Residence for at least one Borrower, then the Servicer must use \ngood business judgment\
      \ to reconcile the inconsistency. \n \n(iii)New Mortgages \n \nUnless the Borrower is eligible for\
      \ a Streamlined DIL, the Servicer must review the \nBorrower’s credit report to determine whether\
      \ the Borrower obtained a new Mortgage(s) \nin the six months preceding the Borrower’s Delinquency\
      \ or, if the Borrower is current, in \nthe six months preceding the evaluation of the Borrower for\
      \ a deed-in-lieu of foreclosure. \n \nIf the Servicer’s review of the credit report reveals a new\
      \ Mortgage, the Servicer may \napprove the deed-in-lieu of foreclosure only if the eligible hardship\
      \ for a Borrower who \nwas 90 or more days delinquent was due to distant employment transfer, relocation\
      \ due to \nnew employment or Permanent Change of Station (PCS) orders and the Servicer verifies\
      \ \n \n■ The Borrower intends to occupy the property securing the new Mortgage as the \nBorrower’s\
      \ Primary Residence \n \n■ The new employment location is greater than 50 miles one way from the\
      \ Mortgaged \n \n■ The new property address is reasonably near the Borrower’s new employment \n\
      \ \n\n \n \n \n \n \nPage 9209-7 \nIf the Borrower has any other hardship, or if the above referenced\
      \ hardship was for a \nBorrower who was less than 90 days delinquent, and the Servicer determines\
      \ a new \nMortgage has been obtained, the Servicer is not delegated to approve the deed-in-lieu\
      \ of \nforeclosure and must submit the request to Freddie Mac for consideration. \n \nIf the Servicer’s\
      \ review of the credit report indicates that a mortgage creditor has made an \ninquiry within the\
      \ previous four-month period, the Servicer must contact the Borrower to \ndetermine the following\
      \ on the Mortgage sought: \n \n■ The address of the property \n \n■ The purpose of the inquiry (e.g.,\
      \ refinance or purchase Mortgage) and \n \n■ The result of the inquiry (e.g., refinance or purchase\
      \ Mortgage is pending, closed or \ncanceled) \n \nIf a purchase Mortgage was obtained, then the\
      \ Servicer is not delegated to approve the \ndeed-in-lieu of foreclosure, and the file must be sent\
      \ Freddie Mac. Refer to Section \n9209.1 regarding the submission of a deed-in-lieu of foreclosure\
      \ to Freddie Mac. \n \n(iv) Special requirements for Borrowers who are current or less than 60 days\
      \ delinquent \n \nIf a Borrower is current or less than 60 days delinquent, he or she must be considered\
      \ to \nbe in non-retention imminent default following the business rules in the chart below \nunless\
      \ the Borrower was discharged from a Chapter 7 bankruptcy. \n \n(A) Non-retention imminent default\
      \ evaluation business rules \n \nResolve® will evaluate the information the Servicer provides against\
      \ the imminent \ndefault business rules. Any Borrower who is current or less than 60 days delinquent\
      \ at \nthe time the Servicer commences the initial evaluation is in non-retention imminent \ndefault\
      \ if the Borrower meets the requirements of the following business rules: \n \nBusiness rule 1 \n\
      \n \n \n \n \n \nPage 9209-8 \n■ Be current or less than 60 days delinquent (i.e., less than \n\
      three monthly payments past due) on the Mortgage as of \nthe evaluation date \n■ Occupy the property\
      \ as a Primary Residence (or at least \none Borrower on the Mortgage must occupy the \nproperty\
      \ as his or her Primary Residence) \n■ Have Cash Reserves (as defined in Section \n9209.2(b)(iv)(C)(I))\
      \ less than $25,000 \n■ Have an eligible hardship as described in Section \n9202.1(b) \nNote: Requirements\
      \ related to occupancy and nonretirement liquid assets do not apply if the Borrower is a \nServicemember\
      \ (as defined in Section 8503.1) with PCS \norders and the property securing the Mortgage is or\
      \ was the \nBorrower’s Primary Residence where the transfer or new \nemployment location is greater\
      \ than 50 miles one way from \nthe property securing the Mortgage. \nBusiness rule 2 \nThe Borrower\
      \ is considered in non-retention imminent \ndefault if the Borrower meets the requirements of business\
      \ \nrule 1, and: \n■ The Borrower’s Credit Score is less than or equal to 620 \ndetermined in accordance\
      \ with Section 9206.1(e)(v); \n■ The Mortgage has had two or more 30-day \nDelinquencies in the\
      \ most recent 6-month period; OR \n■ The Borrower’s housing expense-to-income ratio is \ngreater\
      \ than 40% as of the evaluation date \nIf the Borrower has one of the Imminent Default Hardships\
      \ \ndescribed below in business rule 3, the Borrower may be \ndetermined to be in non-retention\
      \ imminent default even if \nthese business rule 2 requirements are not met. \n\n \n \n \n \n \n\
      Page 9209-9 \n \n \nThe Servicer must submit all information for business rule 1 and business rule\
      \ 2 \nin all instances, even if the Borrower does not meet the requirements under \nbusiness rule\
      \ 2 and instead is approved based on the Imminent Default Hardship \nunder business rule 3. \n \n\
      (B) Income and asset documentation and verification \n \n(I) Documentation and verification \n \n\
      To be evaluated for imminent default, a Borrower must, at a minimum, provide a \ncomplete Borrower\
      \ Response Package as defined in Section 9102.5(c). In addition \nto the income documentation required\
      \ under Section 9202.1(c), the Servicer must \nobtain the Borrower’s Credit Score in accordance\
      \ with Section 9206.1(e)(v). \nBusiness rule 3 \nThe Borrower is considered in non-retention imminent\
      \ \ndefault if the Borrower meets the requirements of business \nrule 1 and the Borrower provided\
      \ the documentation \nrequired in Section 9202.1(b) supporting one of the \nImminent Default Hardships\
      \ listed below: \n■ Death of a Borrower or death of either the primary or \nsecondary wage earner\
      \ in the household \n■ Long-term or permanent disability or serious illness of a \n■ Divorce or\
      \ legal separation or separation of Borrower \nunrelated by marriage, civil union or similar domestic\
      \ \npartnership under applicable law; or \n■ Distant employment transfer or relocation due to new\
      \ \nemployment or PCS orders where the property securing \nthe Mortgage being evaluated is the Borrower’s\
      \ Primary \nResidence. The new employment location must be more \nthan 50 miles one way from the\
      \ property securing the \nMortgage being evaluated. \nThe Imminent Default Hardship must currently\
      \ cause and \nbe expected to continue to cause a long-term or permanent \ndecrease in income or\
      \ increase in expenses. \n\n \n \n \n \n \nPage 9209-10 \n \n(II) Verification of income and assets;\
      \ resolution of material inconsistencies \n \nServicers must review all documentation submitted\
      \ by the Borrower to identify \nany material inconsistencies, including material inconsistencies\
      \ with a tax return \nor tax transcript if one was obtained under Section 9202.1(c). If, based on\
      \ the \nServicer’s good business judgment, there are material inconsistencies with respect \nto\
      \ the income or asset information disclosed by the Borrower or with other \ndocumentation relevant\
      \ to the imminent default decision, the Servicer must obtain \nother documentation to reasonably\
      \ reconcile such material inconsistencies. \nServicers must also document such material differences\
      \ in their Servicing system. \nIf the Servicer cannot reconcile such material differences, the Borrower\
      \ cannot be \n \n(C) Cash Reserves test \n \nimminent default. If the Borrower either discloses\
      \ or provides documentation \nindicating the Borrower has Cash Reserves equal to or greater than\
      \ $25,000, then the \nBorrower is not in imminent default. \n \n(I) Definition of Cash Reserves\
      \ \n \nFor purposes of determining imminent default, Cash Reserves are defined as \n \nwithdrawal\
      \ from any financial institution or brokerage, including funds on deposit \nin the Borrower’s checking,\
      \ savings, money market or certificate of deposit \naccount or other depository account, stocks,\
      \ bonds, mutual funds, U.S. \ngovernment securities and other securities that are traded on an exchange\
      \ or \nmarketplace generally available to the public (e.g., New York Stock Exchange, \nNational\
      \ Association of Securities Dealers Automated Quotations, Midwest SE, \nChicago Board of Trade or\
      \ Over the Counter) for which the price can be readily \nverified through financial publications.\
      \ \n \nAssets are only considered retirement assets if they are held in a qualified \nretirement\
      \ account such as a 401k, 403b, 457, Individual Retirement Account or \npension fund. If the assets\
      \ are not held in a retirement account, the assets must be \nconsidered Cash Reserves. \n \n(II)\
      \ Calculating Cash Reserves \n \n \n\n \n \n \n \n \nPage 9209-11 \n■ The Servicer must determine\
      \ that, for every Borrower on the Mortgage, all the \nBorrower’s Cash Reserves have been accounted\
      \ for on Form 710, Mortgage \nAssistance Application \n \n■ In making the determination that all\
      \ Cash Reserves have been accounted for, \nthe Servicer must review all information provided by\
      \ the Borrower to \ndetermine if the asset information stated on Form 710 is reasonably consistent\
      \ \nwith information available from all other information provided by the \nBorrower, including\
      \ verbal information shared by the Borrower \n \n■ If there are inconsistencies between the Borrower’s\
      \ disclosure of assets and \nthe information provided by the Borrower, then the Servicer must obtain\
      \ the \nBorrower’s tax return or tax transcript to reconcile the inconsistencies. The \n \n❑ If,\
      \ upon reviewing the Borrower’s tax return or tax transcript, if \napplicable, the Servicer observes\
      \ interest, dividend income or gains/losses \nthat, in total, that could not be reasonably produced\
      \ by the Borrower’s \ndisclosed Cash Reserves, and such income indicates deposits, securities \n\
      holdings or other assets that could be in excess of the amounts disclosed \nby the Borrower on Form\
      \ 710, the Servicer must reconcile the \ninconsistency with the Borrower \n \n❑ The Servicer must\
      \ require the Borrower to produce a signed federal tax \nreturn and all relevant schedules, in the\
      \ event the Servicer used a tax \ntranscript in lieu of a tax return, along with any other relevant\
      \ \ndocumentation that verifies the disposition and/or current status of those \nassets, which produced\
      \ the income or gains/losses to resolve the \ninconsistency \n \n❑ The Servicer must ensure that\
      \ the Borrower’s disclosure of assets is \nreasonably accurate despite the inconsistency between\
      \ the disclosed assets \nand the income or gain/loss from assets reported on the tax return or tax\
      \ \ntranscript \n \n❑ In determining what documentation is needed to reconcile an \ninconsistency,\
      \ the Servicer must review the detailed tax return schedules \nand forms and request from the Borrower\
      \ copies of recent and past \nstatements from those asset holdings or transactions indicated on\
      \ the \nschedules and forms that produced the income or gain/loss (e.g., checking, \nsavings, brokerage\
      \ account statements, asset sale statements or records) \n \n■ If there are inconsistencies between\
      \ the Borrower’s disclosure of assets and \nthe tax return information that cannot be reconciled,\
      \ the Borrower cannot be \n \n\n \n \n \n \n \nPage 9209-12 \nIf the Servicer determines that the\
      \ Borrower has Cash Reserves of less than \n$25,000 and meets all other requirements of Section\
      \ 9206.1(e)(ii), then the \nBorrower is considered to be in imminent default. \n \n(D) Imminent\
      \ default Credit Score \n \nServicers must choose one Credit Score that is adequately indicative\
      \ of the credit \nreputation of all Borrowers currently on the Mortgage. Servicers must use a Credit\
      \ \nScore based on the credit-scoring model. This score must be obtained and determined \nin accordance\
      \ with the requirements below. \n \n(I) Obtaining Credit Scores for each Borrower \n \nThe Servicer\
      \ must request a Credit Score for each Borrower on the Mortgage \nfrom any one of the following\
      \ three credit repositories: \n \n■ Equifax Credit Information Services \n \n■ Experian Information\
      \ Systems and Services \n \n■ TransUnion Credit Information Company \n \nThe Borrower’s Credit Score\
      \ must be less than 90 days old on the date the \nServicer performs the imminent default evaluation.\
      \ \n \n(II) Borrowers with no available Credit Score \n \nIt is unusual for any Borrower who has\
      \ obtained a Mortgage not to have a Credit \nScore. If no single Credit Score can be identified\
      \ for a Borrower, the Servicer \nmust recheck the information provided when ordering the Credit\
      \ Scores and \nresubmit a request. If the Servicer is still unable to obtain a Credit Score for\
      \ that \nBorrower, it may rely on the Credit Scores of all other Borrowers as determined \nin accordance\
      \ with this section. \n \nAbsent a Credit Score for any Borrower on the Mortgage, the Borrower may\
      \ not \nbe determined to be in imminent default under the requirements of business rule \n2, and\
      \ the Servicer must proceed to evaluate the Borrower under the requirements \nof business rule 3\
      \ in Section 9206.1(e)(ii). When a Credit Score is not available \nfor any Borrower on the Mortgage,\
      \ the Servicer must: \n \n■ Maintain documentation in the Mortgage file that demonstrates the Servicer’s\
      \ \nattempts to obtain Credit Scores from all three credit repositories on all \n \n■ Enter the\
      \ result that a FICO score is not available for any Borrower on the \n\n \n \n \n \n \nPage 9209-13\
      \ \n \n■ Proceed to the Imminent Default Hardship test in business rule 3 to determine \nif an Imminent\
      \ Default Hardship exists \n \n(III) Determining the Imminent Default Credit Score \n \nThe Servicer\
      \ must identify the Imminent Default Credit Score in accordance with \n \n■ The Servicer must first\
      \ select a single Credit Score for each Borrower on the \nMortgage. If the Servicer obtains multiple\
      \ Credit Scores for a single \nBorrower, the Servicer must use the middle/lower method to select\
      \ the single \nCredit Score for that Borrower. This method is the most predictive when \ndetermining\
      \ a single Borrower's overall credit reputation. If three Credit \nScores are obtained for a Borrower,\
      \ the single score for that Borrower is the \none with the middle value. For example, if the Credit\
      \ Scores were 660, 656 \nand 640, the single Credit Score selected by the Servicer should be 656.\
      \ When \nthere is a duplicate score, the Seller must select that score to be the single \nscore.\
      \ If the Credit Scores for a Borrower were 660, 660 and 640, the Servicer \nshould select 660. If\
      \ two Credit Scores were obtained for a Borrower, the \nServicer must select the lower of the two\
      \ Credit Scores to be the single Credit \nScore for that Borrower. \n \n■ If there is only one Borrower\
      \ on the Mortgage, the single Credit Score, \ndetermined in accordance with the above requirements,\
      \ is considered the \nImminent Default Credit Score \n \n■ If there are multiple Borrowers on the\
      \ Mortgage, the Servicer must determine \nthe single Credit Score for each Borrower using the method\
      \ described above. \nThe Servicer must then select either the lowest Credit Score across all \n\
      Borrowers on the Mortgage or the average Credit Score from all Borrowers' \nsingle scores. (Note:\
      \ Whichever method is used, the Servicer should choose \nthe single Credit Score using the same\
      \ method and procedure for all \nBorrowers and for all Mortgages consistent with fair lending laws.)\
      \ \n \n(E) Calculating housing expense-to-income ratio \n \nThe Servicer must input verified income\
      \ data into Resolve. Based on the Servicer’s \ninput, Resolve will determine if the Borrower’s housing\
      \ expense-to-income ratio is \ngreater than 40%. For purposes of this determination, the Borrower’s\
      \ current monthly \nhousing expense is divided by the Borrower’s monthly gross income (or the \n\
      Borrowers’ combined monthly gross income in the case of co-Borrowers) plus any \nallowable non-obligor\
      \ household income. \n \nThe Borrower’s current monthly housing expense consists of the following,\
      \ as \n\n \n \n \n \n \nPage 9209-14 \n \n \n \n \n \n■ Any Escrow shortage currently included as\
      \ part of the monthly contractual \n \ncontractual rate of interest in effect on the Note prior\
      \ to the granting of the SCRA \nrelief rather than the temporarily SCRA-reduced interest rate and\
      \ related SCRA \nmonthly payment when calculating the Borrower’s current monthly housing expenseto-income\
      \ ratio. \n \nIf a Borrower has indicated that there are condominium/HOA or Cooperative \nMaintenance\
      \ Fees or ground rents but has not been able to provide written \ndocumentation to verify these\
      \ amounts, the Servicer must rely on the information \nprovided by the Borrower if the Servicer\
      \ has made reasonable efforts to obtain the \namounts in writing. \n \npayments or payments due\
      \ to holders of subordinate liens. \n \nBased on the information provided by the Servicer, Resolve\
      \ will calculate the \nBorrower’s housing-to-expense income ratio and determine if it meets the\
      \ imminent \ndefault requirements under business rule 2. \n \n(F) Payment history \n \nBased on\
      \ the information provided by the Servicer, Resolve will review the \nBorrower’s payment history\
      \ and determine if it meets the imminent default \nrequirements under business rule 2. \n \n(G)\
      \ Imminent default evaluation results \n \nIf the Borrower meets the requirements of business rule\
      \ 1 and meets the requirements \nof either business rule 2 or business rule 3, the Borrower is in\
      \ imminent default. The \nServicer must evaluate the Borrower for a deed-in-lieu of foreclosure,\
      \ and no further \nanalysis is required by the Servicer to determine imminent default. \n\n \n \n\
      \ \n \n \nPage 9209-15 \n \n(H) General requirements and information \n \nIf the Servicer determines\
      \ that a Borrower is in imminent default, the Servicer must \ncontinue evaluating the Borrower using\
      \ the applicable requirements outlined in this \nchapter to determine if the Borrower qualifies\
      \ for a deed-in-lieu of foreclosure. \n9209.3: Deeds-in-lieu of foreclosure Borrower \ncontributions\
      \ and relocation assistance (09/10/25) \n \n■ Borrower contributions towards the deficiency \n \n\
      ■ Borrower relocation assistance \n \n(a) Borrower contributions towards the deficiency \n \nIf\
      \ the Servicer determines that the Borrower’s Cash Reserves (as defined in Section \n9209.2(b)(iv)(C)(I))\
      \ exceed $10,000 or the Borrower’s housing expense-to-income (HTI) \nratio is less than or equal\
      \ to 40%, the Servicer must request a cash contribution in accordance \nwith the requirements below.\
      \ The Servicer must verbally confirm the assets reported on Form \n710, Mortgage Assistance Application,\
      \ and reconcile any differences with documentation \nfollowing the procedure in Section 9202.1(c).\
      \ A Servicer may negotiate contribution amounts \nless than the initial contribution requests, which\
      \ must be determined in accordance with the \ncontribution formula in this section. When a Servicer\
      \ negotiates a cash contribution that is \nless than the initial request, the Servicer must document\
      \ the reason for its decision in the \nMortgage file and note the specific financial circumstances\
      \ that limit the Borrower’s ability \nto contribute towards the deficiency. \n \nUnless Freddie\
      \ Mac has delegated authority with the MI or communicates otherwise, if the \nMortgage is covered\
      \ by mortgage insurance and the MI requires a contribution from the \nBorrower that is greater than\
      \ the contribution limits required by this section in order to \napprove the Freddie Mac Standard\
      \ Deed-in-Lieu of Foreclosure (“deed-in-lieu of \nforeclosure”), the Servicer must require the Borrower\
      \ to make the contribution required by \nthe MI as a condition of approval. \n \nBorrowers are not\
      \ required to make a contribution in the following instances: \n \n■ Borrowers who are Servicemembers\
      \ (see Section 8503.1) with Permanent Change of \nStation (PCS) orders who are 90 or more days delinquent.\
      \ The property securing the \nMortgage is or was previously the Borrower’s Primary Residence where\
      \ the transfer or \nnew employment location is greater than 50 miles one-way from the property securing\
      \ \nthe Mortgage being evaluated. \n\n \n \n \n \n \nPage 9209-16 \n \n■ Borrowers who qualify for\
      \ a Streamlined Deed-in-Lieu of Foreclosure (refer to Section \n9209.2) \n \n■ Applicable law prohibits\
      \ requesting or receiving a contribution \n \nIf the Borrower’s Cash Reserves exceed $10,000 or\
      \ his or her HTI ratio is less than or \nequal to 40%, the Servicer must request the greater of\
      \ 20% of the Cash Reserves or four \ntimes the Borrower’s principal, interest, taxes and insurance,\
      \ rounded to the nearest $100 \nas a cash contribution. The cash contribution cannot exceed the\
      \ total amount of the \ndeficiency. \n \nIf a Borrower is 60 or more days delinquent and cannot\
      \ contribute 20% of his or her Cash \nReserves, the Servicer may negotiate a lower level of contribution.\
      \ If the Servicer \nnegotiates and collects less than 20% of the Borrower’s Cash Reserves, then\
      \ the Servicer \nmust document in the Mortgage file the specific financial circumstances that limit\
      \ the \nBorrower’s ability to make the initially requested level of cash contribution (i.e., 20%\
      \ of \nthe Borrower’s Cash Reserves). \n \nBased on the Servicer’s assessment of the Borrower’s\
      \ written or stated ability to pay in \ncombination with its evaluation of the Borrower’s financial\
      \ and hardship information, the \nServicer is authorized to negotiate a lower contribution or agree\
      \ that the Borrower’s \nindividual situation and circumstances warrant a lower starting point to\
      \ cash contribution \nnegotiations or no contribution. If a Borrower is unwilling to contribute\
      \ an amount the \nServicer deems acceptable, then the deed-in-lieu of foreclosure is not delegated\
      \ and must \nbe submitted to Freddie Mac in the manner outlined in Section 9209.1. If the Servicer\
      \ \ndetermines the Borrower is unable to contribute at least $500 toward the deficiency, then \n\
      the Servicer must not collect a cash contribution. \n \nIf the Borrower’s Cash Reserves are in excess\
      \ of $50,000, the Servicer must submit the \ndeed-in-lieu of foreclosure request to Freddie Mac\
      \ for review. \n \nNote: Refer to Section 9209.1 regarding the details for submitting a deed-in-lieu\
      \ of \nforeclosure recommendation to Freddie Mac. \n \n(b) Borrower relocation assistance \n \n\
      If the Servicer determines that the Borrower is not required to make a financial contribution \n\
      toward the deficiency, the Borrower is eligible to receive up to $7,500 in relocation \nassistance\
      \ provided that the Borrower occupies the Mortgaged Premises as his or her primary \nresidence.\
      \ The Borrower is not eligible to receive relocation assistance in the following \ncircumstances:\
      \ \n \n■ The Borrower will receive relocation assistance from a source other than Freddie Mac or\
      \ \nthe Servicer, such as an employer, and the amount is equal to or greater than $7,500. If \n\
      the Borrower will receive relocation assistance from a source other than Freddie Mac or \n\n \n\
      \ \n \n \n \nPage 9209-17 \nthe Servicer and the amount is less than $7,500, the Servicer must reduce\
      \ the amount of \nFreddie Mac’s relocation assistance by the amount received from the other source.\
      \ \n \n■ The Servicer determines that the Borrower’s Cash Reserves exceed the greater of \n$10,000\
      \ or four times the Borrower’s total monthly Mortgage payment, regardless of \nwhether the Borrower\
      \ makes a contribution. If the Servicer believes such a Borrower is \nexperiencing financial circumstances\
      \ necessitating relocation assistance, the Servicer \nmay submit the file to Freddie Mac. Refer\
      \ to Section 9209.1 regarding the details for \nsubmission to Freddie Mac. \n \n■ The Borrower is\
      \ subject to PCS orders and receives government assistance with the \nrelocation \n \nOnce the final\
      \ amount of relocation assistance has been determined and the deed has been \nexecuted, the Servicer\
      \ must disburse to the Borrower the relocation assistance payment. \nUnless otherwise instructed\
      \ by Freddie Mac, the Servicers must distribute the relocation \nassistance funds no more than 30\
      \ days after execution of the deed. Servicers may request \nreimbursement for the relocation assistance\
      \ from Freddie Mac via PAID (Payments \n \nIn addition to the relocation assistance offered by Freddie\
      \ Mac, the Servicer may in its \ndiscretion offer the Borrower an additional financial incentive\
      \ to complete the deed-in-lieu of \nforeclosure. Any relocation assistance provided by the Servicer\
      \ will be in addition to the \nrelocation assistance amount provided by Freddie Mac, and the Servicer’s\
      \ assistance amount \ndoes not have to be subtracted from the assistance amount Freddie Mac will\
      \ pay. If the \nServicer does offer its own relocation assistance, it must provide the assistance\
      \ from its own \nfunds as a payment made directly to the Borrower. \n \nThe relocation assistance\
      \ payment may not be applied to other debts secured by the \n9209.4: Borrower communication and\
      \ execution \ntimelines for deeds-in-lieu of foreclosure (09/10/25) \nIn addition to the response\
      \ requirements related to Borrower Response Packages addressed in \nSection 9102.5, the following\
      \ chart sets forth the required response times when a Freddie Mac \nStandard Deed-in-Lieu of Foreclosure\
      \ (“deed-in-lieu of foreclosure”) is being considered as a \nsolution to the Delinquency for either\
      \ a Mortgage that is not secured by a Primary Residence or a \nMortgage that is secured by Primary\
      \ Residence and the Servicer is not evaluating the Borrower \nfor a deed-in-lieu of foreclosure\
      \ using the First Complete Borrower Response Package received \nmore than 37 days prior to a scheduled\
      \ foreclosure sale date. \n \n\n \n \n \n \n \nPage 9209-18 \nDeed-in-lieu of foreclosure: submission\
      \ of Borrower Response Package or \nstreamlined documentation \n30 days \nWithin five days of an\
      \ evaluation decision, but in no event \nlater than 30 days following the receipt of a complete\
      \ \nBorrower Response Package or streamlined \ndocumentation, the Servicer must send an Evaluation\
      \ \nNotice to the Borrower. The Evaluation Notice must \ninclude approved model language for a deed-in-lieu\
      \ of \nforeclosure, or similar language drafted by the Servicer. \n14 days \nThe Servicer must allow\
      \ the Borrower 14 days from the \ndate the Evaluation Notice is sent to accept the offer to \npursue\
      \ a deed-in-lieu of foreclosure. \n60 days (no later than 90 \ndays) \nThe Servicer must receive\
      \ all necessary approvals (e.g., \ntitle, secondary lien(s), MI) and execute the deed-in-lieu of\
      \ \nforeclosure within 60 days of the date the Borrower’s \ncommunication to accept the offer was\
      \ received. \nIf the Servicer is unable to execute the deed-in-lieu of \nforeclosure within 60 days\
      \ due to delays encountered as a \nresult of issues with title, secondary lien(s) or MI approval,\
      \ \nthe Servicer must continue working with the Borrower to \nresolve these issues. In these instances,\
      \ the Servicer will be \nallotted an additional 30 days to execute the deed-in-lieu of \nforeclosure,\
      \ and, during this time, the Servicer must \nprovide weekly status updates to the Borrower (90 days\
      \ \nmaximum from the date the Borrower’s communication to \naccept the offer was received to the\
      \ date the deed-in-lieu of \nforeclosure is executed). \n \nThe Servicer must maintain documentation\
      \ of all communications to and from the Borrower, \nwhether verbal or written, and including status\
      \ updates, either in the Mortgage file or in the \nServicer’s Servicing system. In addition, the\
      \ Servicer must provide the information to Freddie \nMac for review upon request. \n \nRefer to\
      \ Section 9101.3 for foreclosure suspension requirements for deeds-in-lieu of foreclosure \nwhen\
      \ the First Complete Borrower Response Package is more than 37 days prior to a scheduled \nforeclosure\
      \ sale and results in an offer to proceed with a deed-in-lieu of foreclosure. Refer to \nSections\
      \ 9102.5(c) and 9301.7(a) for foreclosure suspension requirements when the Mortgage \nhas been referred\
      \ to foreclosure for either a Mortgage that is not secured by a Primary Residence \nor a Mortgage\
      \ that is secured by a Primary Residence and the Servicer is not evaluating the \n\n \n \n \n \n\
      \ \nPage 9209-19 \nBorrower for a deed-in-lieu of foreclosure based on the First Complete Borrower\
      \ Response \nPackage received more than 37 days prior to a scheduled foreclosure sale date. \n9209.5:\
      \ Deed-in-lieu of foreclosure transaction and \nprocessing requirements (11/01/25) \n \n■ Prior\
      \ to approval \n \n■ Post-approval activities \n \n■ Resolve® \n \n■ Waiver of buydown funds \n\
      \ \n■ Property valuation requirements for deeds-in-lieu of foreclosure \n \nIn order for the Freddie\
      \ Mac Standard Deed-in-Lieu of Foreclosure (“deed-in-lieu of \nforeclosure”) to be completed by\
      \ the Servicer, the Servicer must work with and assist the \nBorrower to ensure that the deed-in-lieu\
      \ of foreclosure transaction meets the following \n \n(a) Prior to approval \n \n \n■ Ensure the\
      \ Borrower meets all eligibility requirements and negotiates a Borrower \ncontribution, if applicable\
      \ \n \n■ Obtain mortgage releases from all applicable subordinate mortgage holders as follows: \n\
      \ \n❑ The Servicer may authorize payment to subordinate mortgage holders in an aggregate \namount\
      \ of six thousand dollars ($6,000.00). The subordinate mortgage holders must \nnot receive any other\
      \ payments from the Borrower, in cash, promissory note or \notherwise, in connection with approval\
      \ of the deed-in-lieu of foreclosure. \n \n❑ If there are multiple subordinate mortgage holders,\
      \ the Servicer has the discretion to \ndivide the payment among those mortgage holders so as to\
      \ maximize the chances that \nall subordinate mortgage holders will approve the deed-in-lieu of\
      \ foreclosure. \nPayment of any amount to subordinate mortgage holders is contingent upon \nagreement\
      \ by all mortgage holders to release their Mortgage and, if they are accepting \na payment from\
      \ Freddie Mac, extinguish the indebtedness secured by the Mortgaged \n\n \n \n \n \n \nPage 9209-20\
      \ \n \nIn addition, subordinate mortgage holders accepting payment from Freddie Mac must \nagree\
      \ in writing to waive all rights to seek a deficiency judgment against the Borrower. If \na subordinate\
      \ mortgage holder releases its Mortgage to allow the deed-in-lieu of \nforeclosure to close but\
      \ does not extinguish the indebtedness, the mortgage holder will \nnot receive a payment from Freddie\
      \ Mac. Regardless of whether payment is made to a \nsubordinate mortgage holder, the Servicer must\
      \ obtain written commitment from the \nsubordinate mortgage holder(s) to release the Mortgage(s).\
      \ \n \nAll payments made to subordinate mortgage holders must be documented, and the \ndocumentation\
      \ must be provided to Freddie Mac upon request. \n \nThe Servicer must have established written\
      \ policies governing how subordinate mortgage \npayments are paid and evidence of their agreement\
      \ is provided to the Borrower. For \ndeeds-in-lieu of foreclosure completed in accordance with this\
      \ chapter, the Servicer must \nadvance the amount to the subordinate mortgage holder or holders\
      \ and request \nreimbursement for such advancement from Freddie Mac via PAID (Payments Automated\
      \ \n \nNote: Only Mortgages or deeds of trust recorded in the land records and constituting a \n\
      valid lien against the property are eligible for a payment from Freddie Mac. Any and all \nother\
      \ types of liens, including, but not limited to, judgments, mechanic’s and \nmaterialman’s liens\
      \ and common interest association liens, are not eligible for the \nsubordinate mortgage payment.\
      \ \n \n■ Approve and process a deed-in-lieu of foreclosure in compliance with all requirements of\
      \ \napplicable mortgage insurance policies and any delegated authority granted to the \nServicer\
      \ by the MI so as to preserve and not to impair existing mortgage insurance \ncoverage, if any.\
      \ \n \nIf the MI indicates that it will curtail or deny a claim for any reason, including, but not\
      \ \nlimited to, failure of the Servicer to comply with mortgage insurance conditions such as \n\
      payment of a Borrower contribution, the Servicer may not approve the deed-in-lieu of \nforeclosure;\
      \ however, the Servicer must submit the proposed deed-in-lieu of foreclosure \n \n(b) Post-approval\
      \ activities \n \n■ The Servicer must obtain clear and marketable title to the property \n \n■ The\
      \ Borrower must: \n \n❑ Contribute to any loss, according to the requirements in Section 9209.3(a)\
      \ \n \n❑ Vacate the property and leave it in undamaged, broom-swept condition and provide \nthe\
      \ Servicer with the keys to the property at the time of conveyance, unless the \n\n \n \n \n \n\
      \ \nPage 9209-21 \nproperty is a 2- to 4-unit property and Freddie Mac allows one tenant to remain\
      \ in the \n \n❑ For leasehold Mortgages, obtain the consent of the fee simple landowner/lessor,\
      \ if \nrequired under the lease, and provide evidence of consent to the Servicer \n \n❑ Execute\
      \ a personal property release for any personal property the Borrower has left at \nor in the Mortgaged\
      \ Premises. The Servicer may use Exhibit 100, Personal Property \nRelease, as a template and revise\
      \ it as necessary to comply with applicable law or to \nincorporate it into the Servicer’s own forms.\
      \ \n \n■ The Servicer must obtain the executed deed-in-lieu of foreclosure and all other required\
      \ \ndeed-in-lieu of foreclosure documents (including the personal property release). For \nleasehold\
      \ Mortgages, the Servicer must obtain either an assignment of the lease or a new \nlease of the\
      \ same priority. \n \n(c) Resolve \n \nServicers must use Resolve to submit deed-in-lieu of foreclosure\
      \ transactions on Freddie \nMac-owned Mortgages. \n \nEach Servicer must use Resolve in accordance\
      \ with (A) the requirements in this section, (B) \nthe deed-in-lieu of foreclosure and other instructions\
      \ provided in Resolve Online Help and \nany other documentation and (C) any other applicable provisions\
      \ of the Guide, including \nSections 2401.1 and 2404.2. \n \nIf a Servicer is unable to complete\
      \ a submission via Resolve, the Servicer should call \nCustomer Service at 800-FREDDIE. \n \n(d)\
      \ Waiver of buydown funds \n \nThe Borrower must waive reimbursement of any buydown funds, if applicable.\
      \ \n \n(e) Property valuation requirements for deeds-in-lieu of foreclosure \n \nBased on the information\
      \ provided by the Servicer, Resolve will determine if there is an \nexisting valid valuation in\
      \ Freddie Mac systems. If one is not available, Resolve will use the \ninformation provided by the\
      \ Servicer to order a BPO. \n9209.6: Closing, reporting and remittance \nrequirements for deeds-in-lieu\
      \ of foreclosure \n\n \n \n \n \n \nPage 9209-22 \n \n■ Reporting requirements and settlement data\
      \ submissions \n \n■ Remittance requirements \n \n■ Other requirements \n \n(a) Reporting requirements\
      \ and settlement data submissions \n \n1. Report the deed execution in Resolve® within one Business\
      \ Day of receiving the \nexecuted deed or lease \n \n2. Forward to Freddie Mac within five Business\
      \ Days of receiving the executed deed or \nlease: \n \n■ The Borrower’s contribution, if applicable\
      \ (see Directory 5) \n \n■ For a leasehold Mortgage, a copy of the lease via e-mail (see Directory\
      \ 6) \n \n■ A copy of the signed personal property release via e-mail (see Directory 6) \n \n3.\
      \ Report the Mortgage to Freddie Mac via the Freddie Mac Loan Level Reporting tool (see \nExhibit\
      \ 88, Servicing Tools) as a Transfer to REO by the end of the Accounting Cycle in \nwhich the Servicer\
      \ receives the executed deed or lease and ensure that the: \n \n■ Ending gross UPB is the ending\
      \ balance of the Mortgage \n \n■ Principal due field is zero \n \n■ REO acquisition date is the\
      \ date the deed or lease was executed \n \n \nIf any of these data elements are incorrect, the Servicer\
      \ should contact its investor \nreporting specialist or Customer Service at 800-FREDDIE. \n \n4.\
      \ Once the Servicer reports the Mortgage as a Transfer to REO through the Loan Level \nReporting\
      \ tool, Resolve will automatically settle the deed-in-lieu transaction. \n \n(b) Remittance requirements\
      \ \n \nRemit any funds, including funds contributed by the Borrower, via wire transfer or check\
      \ to \nFreddie Mac (see Directory 5) following completion of the reporting requirements in Section\
      \ \n9209.6(a)(3) but no later than six Business Days of receipt of the executed deed or lease. \n\
      \ \n(c) Other requirements \n\n \n \n \n \n \nPage 9209-23 \n \n1. Ensure that: \n \n■ Clear and\
      \ marketable title, or for a leasehold Mortgage, a marketable real estate \nleasehold interest is\
      \ conveyed to Freddie Mac; issuance or purchase of a letter of \nindemnity, title insurance or similar\
      \ form of indemnification does not constitute, and \nmay not be used in lieu of, provision of clear\
      \ and marketable title to the Mortgaged \n \n■ The deed or lease is submitted for recordation within\
      \ five Business Days of the \nServicer’s receipt of the executed deed or lease \n \n■ The recorded\
      \ deed or lease is e-mailed to Freddie Mac (see Directory 6) within one \nBusiness Day after the\
      \ Servicer receives it from the recorder’s office \n \n■ The recorded deed or lease and all other\
      \ required deed-in-lieu of foreclosure \ndocuments (including the personal property release) are\
      \ maintained in the Mortgage \nfile and available to Freddie Mac upon request \n \n2. Request reimbursement\
      \ for any applicable expenses, in accordance with Chapter 9701. \nFor expenses incurred on Mortgages\
      \ insured by the FHA or guaranteed by the VA or \nRHS not subject to recourse or indemnification,\
      \ expense reimbursement will occur after \nFreddie Mac receives the claim payment from the applicable\
      \ entity and determines that \nall other requirements for reimbursement have been satisfied. (Refer\
      \ to Section 9603.2(a) \non FHA/VA/RHS claim filing and Section 9603.2(d) on receipt of claim payment.)\
      \ \n \n3. Release the First Lien within the time frame required by the applicable State or local\
      \ law \nafter the delivery of the deed or lease of the Mortgaged Premises. If local or State law\
      \ \ndoes not require release within a specified time frame, the Servicer must submit the lien \n\
      release for recordation within 30 Business Days of the receipt of the deed or lease and \n \n4.\
      \ Report the acquisition of the property to the Internal Revenue Service (IRS) in \naccordance with\
      \ the requirements in Section 8106.2(b) on IRS Form 1099-A, Acquisition \nor Abandonment of Secured\
      \ Property \n \n5. Release of deficiency if participants have acted in good faith and in compliance\
      \ with all \n \nIf the Borrower has acted in good faith and in compliance with the Guide and all\
      \ \napplicable local, State and federal laws, then Freddie Mac will not pursue the Borrower \nfor\
      \ the entire amount owed under the current Mortgage. Freddie Mac will accept the deed \nor lease\
      \ and the cash contribution by the Borrower, and the Servicer must release the lien \non the Mortgaged\
      \ Premises and mark the previous Note as canceled. For a deed-in-lieu of \nforeclosure completed\
      \ with respect to an eMortgage (as defined in Section 1402.1(b)), the \nServicer must also comply\
      \ with the requirements in Section 1402.5(c)(iii). \n\n \n \n \n \n \nPage 9209-24 \n \nHowever,\
      \ if the Borrower had knowledge of and/or consented to a transaction that was \nnot in compliance\
      \ with the Guide and all applicable local, State and federal laws, Freddie \nMac reserves its rights\
      \ to pursue any and all participants, including, but not limited to the \nBorrower, for the full\
      \ amount owed under the Mortgage, the amount of any other loss or \ndamage Freddie Mac may have\
      \ suffered and other costs and expenses, including, but not \nlimited to, attorneys’ fees. \n \n\
      6. If the Mortgage is covered by mortgage insurance and the MI has not provided a \ndelegation of\
      \ authority to the Servicer or Freddie Mac, fax a copy of the approval from \nthe MI to Freddie\
      \ Mac (see Directory 5) within two Business Days of the Servicer’s \nreceipt of the MI’s approval\
      \ \n \n7. For Cooperative Share Loans, comply with the requirements in Section 8801.3(d) \n\n \n\
      \ \n \nPage 9210-1 \nChapter 9210: Charge-off \n9210.1: Charge-off overview and recommendation \n\
      process (10/08/25) \n \n■ What is a charge-off? \n \n■ When a Servicer must recommend a charge-off\
      \ \n \n■ Submitting a recommendation for a charge-off to Freddie Mac \n \n■ Freddie Mac’s decision\
      \ about a Servicer’s charge-off recommendation \n \n(a) What is a charge-off? \n \nA charge-off\
      \ ceases collection efforts on a Mortgage when all appropriate measures have \nbeen exhausted to\
      \ collect on the delinquent Mortgage and the Servicer has deemed the debt \nto be uncollectible\
      \ or that a foreclosure should not be completed. In most cases, a charge-off \nwill be accompanied\
      \ by a lien release and cancelation of the Note. \n \nA charge-off may be appropriate in varying\
      \ situations, including: \n \n1. A charge-off of a balance remaining after a short payoff. A short\
      \ payoff may result from, \namong other things: \n \n■ A negotiated settlement with the Borrower,\
      \ a legal settlement or an agreement to \nresolve a legal dispute \n \n■ A settlement related to:\
      \ \n \n❑ A Condominium Project or Cooperative Project (see Chapter 8801 for special \nServicing\
      \ requirements for Cooperative Share Loans) termination; or \n \n❑ A unit of a Condominium Project\
      \ or Cooperative Project that is damaged and its \nrepair is not feasible \n \n■ A court order \n\
      \ \n■ A bankruptcy cramdown (see Section 9401.2(e) regarding completing and \ntransmitting the final\
      \ terms of a confirmed bankruptcy cramdown to Freddie Mac via \nthe “Custom Modification” functionality\
      \ in Resolve®); or \n \n\n \n \n \nPage 9210-2 \n■ A receivership \n \n2. A full charge-off of:\
      \ \n \n■ A Mortgage that is secured by a Mortgaged Premises that is subject to property \nseizure\
      \ \n \n■ A Mortgage that is not subject to a recourse or repurchase obligation under the \nPurchase\
      \ Documents, and it is not practical or possible to complete foreclosure or \nother enforcement\
      \ of Freddie Mac’s rights under the Note or Mortgage and/or to \nobtain clear title to the Mortgaged\
      \ Premises \n \n■ A low balance Mortgage that is delinquent and Freddie Mac has determined to not\
      \ \ncomplete a foreclosure of the Mortgage. (See Section 9210.1(b) for more details.) \n \n■ A Mortgage\
      \ or Cooperative Share Loan that is secured by a unit of a Condominium \nProject or Cooperative\
      \ Project, respectively, and: \n \n❑ The project is not presently economically viable; \n \n❑ The\
      \ project has been terminated; or \n \n❑ The unit is damaged and its repair is not feasible \n \n\
      ■ A Mortgage that is secured by a Mortgaged Premises for which has been impacted by \na natural\
      \ or manmade disaster, or other like circumstance, and rebuilding on the land \nis determined by\
      \ the Servicer to be impracticable or impossible \n \n■ A Mortgage that is secured by undeveloped\
      \ land or any above-grade primary \nstructure has been demolished and removed by the Borrower, jurisdiction\
      \ or other \nparty; and the vacant land (and any remaining outbuilding, if applicable) has been\
      \ \nprotected from waste, damage and vandalism \n \n■ A Mortgage that is secured by a Mortgaged\
      \ Premises that a third party is willing to \naccept any risk of liability if it becomes the owner\
      \ of the property. (Note: This may \nalso include a charge-off of a balance left over after a short\
      \ payoff as the result of a \nnegotiated settlement with the third party.) \n \n■ A Mortgage that\
      \ is secured by a Mortgaged Premises that has been identified as \nposing a Risk of Property Ownership.\
      \ (See Section 9202.2(b) for more details) \n \n(b) When a Servicer must recommend a charge-off\
      \ \n \nThe Servicer must recommend a charge-off to Freddie Mac instead of proceeding with \nforeclosure\
      \ when the debt that is secured by the Mortgaged Premises is deemed uncollectible \nand/or any of\
      \ the following situations in numbered paragraphs 1 through 9 below exist: \n\n \n \n \nPage 9210-3\
      \ \n \n1. A short payoff has been approved by Freddie Mac and a balance is left over (see Section\
      \ \n9210.1(a)) \n \n2. The Mortgaged Premises is subject to property seizure (see Section 9210.1(a))\
      \ \n \n3. For any Mortgage not subject to recourse or repurchase obligations under the Purchase\
      \ \nDocuments, the Servicer determines that it is not practical or possible to complete \nforeclosure\
      \ or other enforcement of Freddie Mac’s rights and/or to obtain clear title to the \nMortgaged Premises\
      \ (see Section 9210.1(a)) \n \n4. The Servicer identifies a low balance Mortgage with a UPB that\
      \ is $5,000 or less, \nregardless of the equity in the property, and the criteria of both (a) and\
      \ (b) below are met: \n \n(a) Prior to the Mortgage becoming 120 days delinquent or the Mortgage\
      \ maturing prior \nto becoming 120 days delinquent, the Servicer must: \n \n■ Solicit a payoff or\
      \ other form of workout from the Borrower and respond to all \nBorrower inquiries and requests about\
      \ the Mortgage; and \n \n■ Ensure that payments have been correctly applied to the Mortgage. (In\
      \ certain \ncircumstances, Freddie Mac may request that the Servicer provide documentation \nto\
      \ substantiate that payments have been applied correctly to the Mortgage. If \nFreddie Mac determines\
      \ that the payments were not applied correctly, the \nServicer may be required to satisfy the affected\
      \ debt.) \n \n(b) The following eligibility requirements must be met: \n \n■ The property is owner-occupied\
      \ \n \n■ Property inspections continue to show the property maintenance to be both up to \nneighborhood\
      \ standards and compliant with municipal requirements \n \n■ The Mortgage is at least 120 days delinquent\
      \ or has matured prior to becoming \n120 days delinquent; and \n \n■ The Borrower is not currently\
      \ performing under a relief or workout arrangement \nor a bankruptcy plan \n \nNote: In the event\
      \ the Servicer identifies a Mortgage with a UPB that is greater than \n$5,000, but all other criteria\
      \ in both (a) and (b) are met, the Servicer may make a \nrecommendation for a charge-off to Freddie\
      \ Mac. \n \n5. The Mortgage or Cooperative Share Loan (see Chapter 8801 for special Servicing \n\
      requirements for Cooperative Share Loans) is secured by a unit of a Condominium \nProject or Cooperative\
      \ Project, respectively, and: \n \n\n \n \n \nPage 9210-4 \n■ The project is not presently economically\
      \ viable \n \n■ The project has been terminated; or \n \n■ The unit is damaged and its repair is\
      \ not feasible (see Section 9210.1(a)) \n \n6. The Mortgaged Premises has been impacted by a natural\
      \ or man-made disaster, or other \nlike circumstance, and rebuilding on the land is determined by\
      \ the Servicer to be \nimpracticable or impossible (see Section 9210.1(a)) \n \n7. The Mortgage\
      \ is secured by undeveloped land or any above-grade primary structure has \nbeen demolished and\
      \ removed by the Borrower, jurisdiction or other party and the vacant \nland (and any remaining\
      \ outbuilding, if applicable) has been protected from waste, \ndamage and vandalism (see Section\
      \ 9210.1(a)) \n \n8. A third party is willing to accept any risk of liability if it becomes the\
      \ owner of the \nproperty (see Section 9210.1(a)) \n \n9. The Mortgaged Premises poses a Risk of\
      \ Property Ownership to Freddie Mac (see \nSection 9202.2(b)) \n \nIn addition to the above requirements,\
      \ if the Mortgage is a matured Mortgage, the Servicer \nmust comply with the requirements of Section\
      \ 8303.1(c) with respect to the payoff of such \nmatured Mortgage and only submit a charge-off request\
      \ if the Mortgage is delinquent at time \nof maturity, or becomes delinquent following maturity\
      \ and meets any of the above criteria. \n \n(c) Submitting a recommendation for a charge-off to\
      \ Freddie Mac \n \nServicers must use the Resolve user interface (UI) to submit a charge-off recommendation\
      \ to \nFreddie Mac. Servicers that elect to submit charge-off recommendations via the Resolve UI\
      \ \nmust use Resolve in accordance with (A) the requirements in this section, (B) the charge-off\
      \ \nand other instructions provided in Resolve Online Help and any other documentation and \n(C)\
      \ any other applicable provisions of the Guide, including Sections 2401.1 and 2404.2. \n \nThe Servicer\
      \ must take the steps listed below in this section when it recommends a chargeoff of a Mortgage\
      \ to Freddie Mac. Before making the recommendation, the Servicer must \nhave filed and settled any\
      \ property insurance claim(s) with the applicable property insurer. \n \nTo submit a charge-off\
      \ recommendation, the Servicer must complete the charge-off template \nand upload the following\
      \ via Resolve: \n \n1. A detailed explanation of the Servicer’s recommendation \n \n2. Documentation\
      \ describing the condition of the property, including copies of the most \nrecent six consecutive\
      \ months of property inspection reports with photographs. For \ncharge-off recommendations on low\
      \ balance Mortgages (see Section 9210.1(b)), the \n\n \n \n \nPage 9210-5 \nServicer may submit\
      \ less than six consecutive months of property inspection reports \ndepending on the level of Delinquency.\
      \ \n \nNote: If the Servicer has previously provided this information in accordance with \nSections\
      \ 8403.1(a) and (b), the Servicer does not need to submit this information again as \npart of the\
      \ charge-off recommendation. \n \n3. A Hazard Distressed BPO obtained through BPOdirect®, if applicable,\
      \ if the \nrecommendation to charge off a Mortgage is due to condemnation, disaster or other Risk\
      \ \nof Property Ownership (see Section 9202.2(b)). The Hazard Distressed BPO must be less \nthan\
      \ 90 days old on the date the Servicer makes the recommendation to charge off the \nMortgage, unless\
      \ expressly approved by Freddie Mac. \n \n4. A payoff statement, when applicable \n \n5. A copy\
      \ of any property insurance claims filed, including a copy of either: \n \n■ An explanation of benefits\
      \ and proof of payment received by the Servicer on any paid \nclaim(s); or \n \n■ Any notification\
      \ documenting reason(s) for non-payment of a claim and if an appeal \nwas filed by the Servicer\
      \ that was also denied for payment of a claim \n \n6. A copy of any estimates that may have been\
      \ obtained by the Servicer for necessary \nrepairs \n \n7. If the Mortgage is secured by a Manufactured\
      \ Home, the documentation specified in \nSection 9301.2(f)(iii) or 9301.2(f)(iv) to evidence that\
      \ the Manufactured Home and the \nland are real property under the laws of the State where the property\
      \ is located. If the \nManufactured Home is located in a certificate of title State (see Section\
      \ 5703.4(f)(iii)), \nthen the Servicer must provide the documentation specified in Section 9301.2(f)(v).\
      \ \n \nFreddie Mac will contact the Servicer should it require additional documentation following\
      \ \nthe submission of a recommendation to charge off a Mortgage. \n \n(d) Freddie Mac’s decision\
      \ about a Servicer’s charge-off recommendation \n \nFreddie Mac will review the documentation the\
      \ Servicer submits and make a decision to \napprove or deny the charge-off request. \n \n(i) Approval\
      \ of request \n \nFreddie Mac will notify the Servicer if the charge-off recommendation is approved\
      \ and \nwhether the lien has been released through Resolve. Upon approval of the request, the \n\
      Servicer must not incur any new expenses for taxes, insurance, property preservation, \n\n \n \n\
      \ \nPage 9210-6 \nlegal fees or any other fees or costs if Escrow is insufficient to pay charges\
      \ when due \nwithout Freddie Mac’s prior approval (see Directory 5). \n \nIn most cases, when Freddie\
      \ Mac approves a charge-off request, Freddie Mac will \ninstruct the Servicer to release its lien\
      \ on the property and cancel the Note as part of the \nclosing of an approved charge-off request\
      \ (see Section 9210.2). However, in situations in \nwhich future funds are anticipated (e.g., when\
      \ Freddie Mac or the Servicer is negotiating \na settlement with the Borrower or a third party),\
      \ Freddie Mac will retain its lien on the \nproperty and will instruct the Servicer not to release\
      \ the lien or cancel the Note on the \nRequest Details Screen in Resolve until such time that funds\
      \ are received by Freddie \n \n(ii) Denial of request \n \nIf Freddie Mac denies the charge-off\
      \ request, Freddie Mac will provide the Servicer the \nresponse in Resolve, stating the reason Freddie\
      \ Mac denied the request together with the \ncourse of action the Servicer must take to resolve\
      \ the Delinquency, including the \nresumption of normal default Servicing activity, including all\
      \ Escrow advances, property \npreservation and legal activities, if applicable. \n9210.2: Closing,\
      \ reporting and remittance \nrequirements for charge-offs (09/10/25) \n \n■ Lien release requirements\
      \ \n \n■ Reporting requirements \n \n■ Settlement data submissions \n \n■ Charging-off the Delinquency\
      \ \n \n■ Remittance requirements \n \n■ Closing requirements \n \n■ Requesting reimbursement \n\
      \ \n(a) Lien release requirements \n \nIf Freddie Mac instructs the Servicer not to complete a lien\
      \ release as part of the approved \ncharge-off request, upon receiving a request from a Freddie\
      \ Mac-approved vendor (see \n\n \n \n \nPage 9210-7 \nSection 9601.1(a) for details on this process),\
      \ the Servicer must prepare and submit all of the \nfollowing documentation to the Freddie Mac-approved\
      \ vendor: \n \n■ Original Note \n \n■ Original Security Instrument \n \n■ A copy of the assignment\
      \ of the Security Instrument to “Federal Home Loan Mortgage \nCorporation” sent to the local recorder’s\
      \ office; and \n \n■ A copy of the original loan application \n \nThe Servicer must forward the\
      \ recorded assignment to Freddie Mac (see Directory 5) when \nthe Servicer has received it from\
      \ the recorder’s office. When sending the documentation to a \nFreddie Mac-approved vendor, the\
      \ Servicer must only send the items listed above, not entire \nServicing file. \n \nIn the event\
      \ Freddie Mac approves a charge-off request and instructs the Servicer to release \nthe lien on\
      \ the property and cancel the Note, the Servicer must prepare and execute a \nsatisfaction of Note\
      \ and/or release of lien. For Cooperative Share Loans, the Servicer must \nalso comply with the\
      \ requirements in Section 8801.3(e). \n \n(b) Reporting requirements \n \nWithin two Business Days\
      \ of the workout approval reflected in Resolve®, following receipt \nof funds when a short payoff\
      \ has been approved by Freddie Mac, the Servicer must: \n \n1. Reinstate the Mortgage if it was\
      \ inactivated; and \n \n2. Report the Mortgage as a “Short Sale/Charge-off/Make-whole” in the Loan\
      \ Level \nReporting tool (see Exhibit 88, Servicing Tools) and ensure that the: \n \n■ Ending gross\
      \ UPB is zero \n \n■ Principal due field is completed with the gross unpaid ending balance of the\
      \ Mortgage \n \n■ Payoff date is the workout approval date reflected in Resolve; and \n \n \nIf\
      \ any of these data elements are incorrect, the Servicer should contact its investor reporting \n\
      specialist or call Customer Service at 800-FREDDIE. \n \n(c) Settlement data submissions \n \n\n\
      \ \n \n \nPage 9210-8 \nFollowing completion of the reporting and remittance requirements, Resolve\
      \ will \nautomatically settle the charge-off transaction. \n \n(d) Charging-off the Delinquency\
      \ \n \nThe amount that Freddie Mac has determined to be charged off will be reflected on the Draft\
      \ \nReport. The Servicer must review the Draft Report and report any discrepancies between its \n\
      records and the amount on the Draft Report to Freddie Mac via the Freddie Mac Servicing \nData Corrections\
      \ tool (see Exhibit 88) within the same Accounting Cycle in which Freddie \nMac posts the amount\
      \ to the Draft Report. Servicers may access the Draft Report through the \nCash Manager tool (see\
      \ Exhibit 88). \n \n \nDiscrepancies submitted after the Accounting Cycle in which the initial adjustment\
      \ is posted \nto the Draft Report closes will be processed at Freddie Mac’s discretion and may be\
      \ subject \nto a contract noncompliance and contract change compensatory fee (see Section 8303.5(i)).\
      \ If \nthe postsettlement correction request is denied, the Servicer may be liable for any additional\
      \ \nlosses. \n \n(e) Remittance requirements \n \nFollowing completion of the reporting requirements\
      \ in Section 9210.2(c) but no later than \nthree Business Days after workout approval reflected\
      \ in Resolve or following receipt of \nfunds when a short-payoff has been approved by Freddie Mac,\
      \ the Servicer must submit any \nproceeds received on a Mortgage that has an approved charge-off\
      \ request via wire transfer or \ncheck to Freddie Mac (see Directory 5), regardless of whether the\
      \ lien is released or not. \n \n(f) Closing requirements \n \nWithin seven Business Days of the\
      \ workout approval date reflected in Resolve, the Servicer \n \n1. Notify the Borrower in writing\
      \ that the Servicer will no longer service the Mortgage. The \nwritten notice must include: \n \n\
      ■ Freddie Mac's nine-digit loan number and the Servicer's loan number \n \n■ Information that either:\
      \ \n \n❑ The lien on the property is being released and the Note is being canceled; or \n \n\n \n\
      \ \n \nPage 9210-9 \n❑ The lien is not being released, the Note is not being canceled, the Mortgage\
      \ is \nbeing assigned to Freddie Mac and the Borrower remains financially obligated to \nthe Note\
      \ and Security Instrument \n \n■ Instructions that the Borrower remains responsible for paying property\
      \ taxes and \nproperty insurance premiums and that such payments should be made directly to the\
      \ \ntaxing authority or insurer, even if the Mortgage had an Escrow account prior to the \n \n2.\
      \ If the Mortgage had an Escrow account prior to the charge-off, the Servicer must notify \nthe\
      \ local taxing authority in writing to send all tax bills directly to the Borrower \n \n(g) Requesting\
      \ reimbursement \n \nIn order for the Servicer to be reimbursed for charge-off related expenses,\
      \ the charge-off \nmust first be accepted and settled in Resolve. The Servicer must request reimbursement\
      \ for \nany applicable expenses, in accordance with the requirements in Chapter 9701. \n\n \nPage\
      \ 9212-1 \nChapter 9211: Third Party Mortgage Assistance"
    drafter_attestation: 'Verbatim Freddie Mac Guide Section 9203.1 from snapshot 5869ee9e606cd4ae via
      reading projection (furniture stripped); section-bounded by NNNN.N: headers; substring-verified.'
  judgment: false
