source:
  type: regulation
  id: fhlmc-9201.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide §9201.1 — Rationale for Servicer loss mitigation activities
    (09/10/25)
  description: "Freddie Mac Guide §9201.1 (Rationale for Servicer loss mitigation activities). Gap-fill (verbatim,\
    \ ID-diff). \n"
obligations:
- id: fhlmc-9201.1-0
  canonical_id: fhlmc-9201.1-0
  section: Freddie Mac Guide 9201.1
  description: '9201.1 Rationale for Servicer loss mitigation activities: (09/10/25) Freddie Mac’s interest in a
    Mortgage, the Borrower and the home securing the Mortgage begins when Freddie Mac purchases the Mortgage. The
    Borrower’s ownership of the home is jeopardized when he or she stops making monthly payments. Freddie Mac is
    committed to helping B…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9201.1 — Rationale for Servicer loss mitigation
      activities (09/10/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '(09/10/25) Freddie Mac’s interest in a Mortgage, the Borrower and the home securing the Mortgage
      begins when Freddie Mac purchases the Mortgage. The Borrower’s ownership of the home is jeopardized when he
      or she stops making monthly payments. Freddie Mac is committed to helping Borrowers find a solution to the
      Delinquency if they are experiencing financial difficulty in making the Mortgage payment. The Borrower must
      make a commitment to reduce any discretionary, unnecessary expenditures as a condition of Freddie Mac granting
      a relief or workout option. Additionally, the Borrower is expected to work out similar relief or workout options
      with other creditors whenever possible. Freddie Mac recognizes that not every Borrower who is experiencing
      financial difficulty can retain home ownership. When this is the case, the Servicer can help a Borrower understand
      the benefits of selling the property to avoid the consequences of foreclosure, where applicable, and the risk
      of a deficiency judgment. Freddie Mac wants the Servicer to pursue alternatives to foreclosure whenever possible
      because they benefit not only the Borrower but also the Servicer, Freddie Mac and other interested parties
      in the Mortgage by: ■ Eliminating the staff time and expense the Servicer incurs to service a delinquent Mortgage
      or a Mortgage in foreclosure ■ Reinstating the Servicing fee income the Servicer earns if a Mortgage Delinquency
      is cured or reinstating part or all of the Servicing fee income if a Mortgage is modified ■ Improving the
      Servicer’s relationship with the Borrower ■ Minimizing Freddie Mac’s credit losses ■ Reducing an MI or guarantor’s
      claim payment, when applicable Even after the Servicer has initiated foreclosure, it should still pursue alternatives
      to foreclosure to mitigate potential credit losses, whenever possible.'
    drafter_attestation: Verbatim from Freddie Guide §9201.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9201.1-1
  canonical_id: fhlmc-9201.1-1
  section: Freddie Mac Guide 9201.1
  description: '9201.1 Rationale for Servicer loss mitigation activities: Freddie Mac loss mitigation evaluation
    hierarchy (02/11/26) This section contains requirements related to: ■ Loss mitigation evaluation hierarchy ■
    Streamlined eligibility for certain Borrowers ■ Charge-offs ■ Borrowers impacted by an Eligible Disaster ■ Ineligible
    Borrowers (a) …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9201.1 — Rationale for Servicer loss mitigation
      activities (09/10/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Freddie Mac loss mitigation evaluation hierarchy (02/11/26) This section contains requirements
      related to: ■ Loss mitigation evaluation hierarchy ■ Streamlined eligibility for certain Borrowers ■ Charge-offs
      ■ Borrowers impacted by an Eligible Disaster ■ Ineligible Borrowers (a) Loss mitigation evaluation hierarchy
      If a Borrower contacts the Servicer for loss mitigation assistance, the Servicer must first determine if the
      Borrower can bring the loan current through reinstatement. If reinstatement is not feasible, the following
      information outlines the order in which a Borrower must be evaluated: 1. The Servicer must first determine
      if the Borrower has a temporary or permanent hardship ■ Temporary hardship: exists if the Borrower is experiencing
      or has experienced a temporary hardship from a short-term decrease in income or increase in expenses ■ Permanent
      hardship: exists if the Borrower is experiencing a hardship that results in a permanent or long-term decrease
      in income or increase in expenses 2. The Servicer must then determine based on the Borrower’s individual circumstance
      which relief or workout option they should be evaluated for in accordance with the table below. Temporary
      hardship If the hardship has… Servicer must evaluate the Borrower for a… Not been resolved Forbearance (see
      Section 9203.3) Been resolved and the Borrower does not have the ability to bring the loan current through
      reinstatement Repayment plan (see Section 9203.2)'
    drafter_attestation: Verbatim from Freddie Guide §9201.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9201.1-2
  canonical_id: fhlmc-9201.1-2
  section: Freddie Mac Guide 9201.1
  description: '9201.1 Rationale for Servicer loss mitigation activities: 201-3 Been resolved and the Borrower cannot
    afford a repayment plan Payment Deferral (see Section 9203.4) Permanent hardship If it was determined that the
    Borrower has a permanent hardship, the Servicer must evaluate the Borrower for a workout option in the following
    order: 1. Fr…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9201.1 — Rationale for Servicer loss mitigation
      activities (09/10/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '201-3 Been resolved and the Borrower cannot afford a repayment plan Payment Deferral (see
      Section 9203.4) Permanent hardship If it was determined that the Borrower has a permanent hardship, the Servicer
      must evaluate the Borrower for a workout option in the following order: 1. Freddie Mac Flex Modification®
      in accordance with the requirements of Chapter 9206 2. If a Borrower is ineligible for, does not accept or
      fails to complete the Trial Period Plan, a Freddie Mac Standard Short-Sale pursuant to Chapter 9208 3. If
      a Borrower is ineligible for a short sale or a short sale is not a viable option, a Freddie Mac Standard Deed-in-lieu
      of Foreclosure in accordance with the requirements of Chapter 9209 If a Borrower requests to be evaluated
      for a liquidation workout option, the Servicer must first evaluate the Borrower for a liquidation option.
      (b) Streamline eligibility for certain Borrowers Certain eligibility exceptions apply to the following Borrowers:
      If: Then: ■ Borrower is 90 days delinquent or greater, or ■ Has a Step-Rate Mortgage and: • Becomes 60 days
      delinquent within the 12 months following the first payment due date resulting from an interest rate adjustment
      • Has not submitted a complete Borrower Response Package The Servicer must evaluate the Borrower for eligibility
      for a proactive offer for a Freddie Mac Flex Modification in accordance with the requirements of Section 9206.1(c)(iii).
      A Borrower who was on a forbearance plan completes the forbearance without a solution to the Delinquency The
      Servicer must evaluate the Borrower for a proactive Payment Deferral and/or Freddie Mac Flex Modification
      in accordance with the requirements of Section 9203.3 (c)(ii). A Borrower attempts but is unable to resolve
      their Delinquency with a repayment plan The Servicer must evaluate the Borrower for a proactive Payment Deferral
      and/or Freddie Mac Flex Modification in accordance with the requirements of Section 9203.2 (b)(iii).'
    drafter_attestation: Verbatim from Freddie Guide §9201.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9201.1-3
  canonical_id: fhlmc-9201.1-3
  section: Freddie Mac Guide 9201.1
  description: '9201.1 Rationale for Servicer loss mitigation activities: 201-4 The Borrower has accepted a Payment
    Deferral and: • Subsequently becomes 60 days delinquent within 6 months of the Payment Deferral effective date,
    and • The Servicer is unable to establish quality right party contact The Servicer must evaluate the Borrower
    for a Freddie Ma…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9201.1 — Rationale for Servicer loss mitigation
      activities (09/10/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '201-4 The Borrower has accepted a Payment Deferral and: • Subsequently becomes 60 days delinquent
      within 6 months of the Payment Deferral effective date, and • The Servicer is unable to establish quality
      right party contact The Servicer must evaluate the Borrower for a Freddie Mac Flex Modification in accordance
      with the requirements of Section 9203.4(h)(vii). (c) Charge-offs Freddie Mac has a charge-off option available
      to cease collection and loss mitigation activities on a Mortgage under certain conditions. (See Sections 9210.1
      through 9210.5 for requirements related to the charge-off option.) (d) Borrowers impacted by an Eligible Disaster
      If the Servicer determines that the Borrower is unable to resolve a Delinquency resulting from an Eligible
      Disaster through a reinstatement, the information in the table below outlines the order in which a Borrower
      must be evaluated: For Borrowers who were current or less than 60 days delinquent as of the date the Eligible
      Disaster occurred If the hardship has… Servicer must evaluate the Borrower for a… Been resolved and the Borrower
      does not have the ability to bring the loan current through reinstatement Repayment plan (see Section 9203.1)
      Been resolved and the Borrower cannot afford a repayment plan Disaster Payment Deferral (see Section 9203.4(i))
      Has been resolved but the Borrower is not capable of maintaining the full contractual payment Disaster Flex
      Modification (see Section 9206.1(c)(v)) If a Borrower is ineligible for, does not accept, or fails to complete
      the Trial Period Plan, the Servicer must next consider the Borrower for a Freddie Mac Standard Short-Sale
      pursuant to Chapter 9208. If a Borrower is ineligible for a short sale or a short sale is not a viable option,
      the Servicer must evaluate the Borrower for a Freddie Mac Standard Deed-in-lieu of Foreclosure in accordance
      with the requirements of Chapter 9209.'
    drafter_attestation: Verbatim from Freddie Guide §9201.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9201.1-4
  canonical_id: fhlmc-9201.1-4
  section: Freddie Mac Guide 9201.1
  description: '9201.1 Rationale for Servicer loss mitigation activities: 201-5 For Borrowers who were 60 days delinquent
    or greater as of the date the Eligible Disaster occurred If the Borrower was not current or less than 60 days
    delinquent (i.e., less than two months delinquent) as of the date of the Eligible Disaster, the Servicer must
    conduct all …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9201.1 — Rationale for Servicer loss mitigation
      activities (09/10/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 201-5 For Borrowers who were 60 days delinquent or greater as of the date the Eligible Disaster
      occurred If the Borrower was not current or less than 60 days delinquent (i.e., less than two months delinquent)
      as of the date of the Eligible Disaster, the Servicer must conduct all loss mitigation evaluations in accordance
      with the standard loss mitigation evaluation hierarchy as described in Section 9201.2(a) or submit an exception
      request. If a Borrower who was on a disaster-related forbearance completes the forbearance plan without a
      solution to the delinquency, the Servicer must conduct reviews for proactive Disaster Payment Deferral and
      proactive Freddie Mac Flex Modification offers in accordance with Sections 9203.4 (i)(vii), (i)(viii), (i)(ix),
      and (i)(x). For the full requirements related to Servicing Mortgages impacted by a disaster, see Section 8404.1.
      (e) Ineligible Borrowers If the Borrower is not eligible for a relief or workout option but the Servicer believes
      that a relief or workout option is still the best solution to the Delinquency, then the Servicer may submit
      a recommendation to Freddie Mac for review along with the reason for the recommendation, in accordance with
      the requirements in the relevant chapters for relief or workout options.
    drafter_attestation: Verbatim from Freddie Guide §9201.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9201.1-5
  canonical_id: fhlmc-9201.1-5
  section: Freddie Mac Guide 9201.1
  description: '9201.1 Rationale for Servicer loss mitigation activities: Servicer’s responsibilities for loss mitigation
    activities (09/10/25) The Servicer’s loss mitigation activities must include: ■ Pursuing reinstatement as the
    first option to resolve a Delinquency ■ Analyzing the Borrower’s financial situation and determining his or
    her intention …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9201.1 — Rationale for Servicer loss mitigation
      activities (09/10/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Servicer’s responsibilities for loss mitigation activities (09/10/25) The Servicer’s loss
      mitigation activities must include: ■ Pursuing reinstatement as the first option to resolve a Delinquency
      ■ Analyzing the Borrower’s financial situation and determining his or her intention toward the Mortgage obligation
      ■ Determining the value and condition of the property to calculate the Borrower’s equity position and Freddie
      Mac’s potential loss if Freddie Mac were to acquire the property as an REO ■ Pursuing alternatives to foreclosure
      in accordance with the hierarchy set forth in Section 9201.2 when the Servicer determines the Borrower cannot
      reinstate ■ Continuing to pursue alternatives to foreclosure even after the Servicer has initiated foreclosure
      in accordance with Section 9102.4(b)'
    drafter_attestation: Verbatim from Freddie Guide §9201.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-9201.1-6
  canonical_id: fhlmc-9201.1-6
  section: Freddie Mac Guide 9201.1
  description: '9201.1 Rationale for Servicer loss mitigation activities: 201-6 ■ Managing the foreclosure process
    to ensure that expenses and accruing interest are minimized and obtaining clear and marketable title as soon
    as legally possible In conducting loss mitigation activities, the Servicer must also comply with all FHA, RHS,
    VA or MI requiremen…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §9201.1 — Rationale for Servicer loss mitigation
      activities (09/10/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '201-6 ■ Managing the foreclosure process to ensure that expenses and accruing interest are
      minimized and obtaining clear and marketable title as soon as legally possible In conducting loss mitigation
      activities, the Servicer must also comply with all FHA, RHS, VA or MI requirements, if applicable, and with
      the requirements in the table below: Additional requirements in conducting loss mitigation activities Topic
      Guide location Delinquencies Chapter 9102 Reinstatements and relief options Chapter 9203 Hardest Hit Fund
      Chapter 9211 Foreclosure Chapter 9301 Bankruptcy Chapter 9401'
    drafter_attestation: Verbatim from Freddie Guide §9201.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
