Freddie Mac Single-Family Seller/Servicer Guide 8303.2 — Monthly reporting and remittance requirements for Mortgages

This section contains information related to: ■ Monthly reporting and remittance requirements for Mortgages with partial principal forbearance ■ Monthly remittance cycle ■ Monthly reporting and drafting requirements, including exception activities ■ Reporting requirements for Servicemembers Civil Relief Act (SCRA) interest rate-capped Mortgages

(a) Monthly reporting and remittance requirements for Mortgages with partial principal forbearance In addition to the loan-level reporting requirements for all Mortgages in Chapter 8303 and Exhibit 60, Loan-Level Reporting Data Description, Servicers must comply with the following monthly loan-level reporting requirements for all Mortgages with a partial principal forbearance: Monthly loan-level reporting requirements for all Mortgages with a partial principal forbearance Data field Description Current UPB For all Mortgages, report the UPB of the Mortgage as of the end of the Accounting Cycle. For Mortgages with partial principal forbearance, the reported UPB must equal the sum of the interestbearing UPB (the amortizing principal balance of the Mortgage or the “interest-bearing UPB”) and the principal forbearance balance (“deferred UPB”), as of the end of the Accounting Cycle. Interest-bearing UPB For Mortgages with partial principal forbearance, report the amount of the interest-bearing UPB (the amortizing principal balance of the Mortgage) as of the end of the Accounting Cycle. (Note: Monthly “Interest Due Freddie Mac” must be calculated and reported based on the interest-bearing UPB only.) Deferred UPB For Mortgages with partial principal forbearance, report the amount of deferred UPB as of the end of the Accounting Cycle. (Note: The deferred UPB is noninterest-bearing and non-amortizing and will be due in the form of a balloon payment upon the earlier of the transfer of all or a portion of the property, the payoff of the interest-bearing UPB or the new maturity date of the modified Mortgage.) Principal Due Freddie Mac For all Mortgages, report Freddie Mac’s share of principal payments, including prepayments of principal (i.e., curtailments) applied to the interestbearing UPB of the Mortgage during the Accounting Cycle. Deferred Principal Curtailment Amount For Mortgages with partial principal forbearance, report the amount of any principal curtailment applied to the deferred UPB during the Accounting Cycle. This amount must be included in the “Deferred UPB” field. (i) Reporting corrections Servicers must comply with the requirements of Section 8303.3(k) in the event of an understatement or overstatement of principal reduction to either the interest-bearing UPB or the deferred UPB. (ii) Exception reporting and remitting for a payoff of a Mortgage with partial principal forbearance Servicers must comply with the applicable exception reporting requirements set forth in this chapter except that, when reporting the payoff of a Mortgage with a partial principal forbearance, Servicers must also comply with the following: ■ The Current UPB, Interest-bearing UPB and Deferred UPB fields must be reported as zero ■ The amount of deferred UPB as reported in the previous Accounting Cycle must be reported in the Deferred Principal Curtailment Amount field ■ The amount of the current UPB (i.e., combined interest-bearing UPB and deferred UPB) as reported in the previous Accounting Cycle, plus or minus the Exception Interest, will be drafted with the Servicer’s exception remittance. Exception Interest must be based on the interest-bearing UPB only. Servicers must calculate payoff proceeds in accordance with the following: Interest-Bearing UPB + Deferred UPB +/- Exception Interest (calculated based on the interest-bearing UPB) = Proceeds due Freddie Mac (iii) Application of partial prepayments of principal If the partial prepayment of principal (“principal curtailment”) is less than the interestbearing UPB, it must be applied to the interest-bearing UPB. If the principal curtailment is equal to or greater than the interest-bearing UPB, then the principal curtailment must first be applied to the deferred UPB and any remaining curtailment to the interest-bearing UPB. Servicers must report the amount of any curtailment applied to the deferred UPB during the Accounting Cycle in the Deferred Principal Curtailment Amount data field. (iv) Monthly statements Freddie Mac recommends the Servicer include the amount of the deferred UPB and the combined interest-bearing and deferred UPBs on the Borrower’s monthly statement. (v) Deferred UPB outstanding For Mortgages with a deferred UPB (also referred to as non-interest bearing UPB), in accordance with the modification agreement, Payment Deferral agreement and/or Section 8303.2(a), as applicable, the deferred UPB is due upon the earliest of the (i) transfer or sale of all or a portion of the property, (ii) the payoff of the interest-bearing UPB or (iii) the Mortgage maturity date (as modified) and must be reported in accordance with the requirements in Section 8203.2(a)(ii). If the Servicer does not receive the full payoff, including the deferred UPB, or the Borrower is not in active review for a workout by the end of the Accounting Cycle of the month of the transfer or sale of all or a portion of the property, payoff of the interestbearing UPB, or the Mortgage maturity date(as modified), the Servicer must proceed with collections and default activities, as applicable, in compliance with the requirements set forth in Chapters 9101 and 9102 and applicable law.

(b) Monthly remittance cycle All Mortgages serviced for Freddie Mac will follow the Standard Remittance Cycle. Freddie Mac will directly draft the monthly principal and interest from the Servicer on the second Business Day after the P&I Determination Date.

(c) Monthly reporting and drafting requirements, including exception activities The Servicer must report the following to Freddie Mac monthly on or before the P&I Determination Date: ■ All principal and interest activities for all Active Mortgages ■ Exception Activities listed in the chart below ■ The Reporting Status of all Inactive Mortgages Freddie Mac will draft, directly from the Servicer’s designated Custodial Account, the principal and interest for all Mortgages on the second Business Day following the P&I Determination Date. See Section 8303.3(i) for information on inactivating a Mortgage. Refer to Section 8303.1(e) for specific requirements about when funds must be available to Freddie Mac and to Section 7101.3 for initial reporting and remitting requirements on Transfers of Servicing. The following chart summarizes the applicable draft dates for the exception activity the Servicer must remit to Freddie Mac monthly: Applicable draft dates for the exception activity Activity (Parenthetical terms are used in the Freddie Mac Loan Level Reporting tool) (see Exhibit 88, Servicing Tools) Description Make funds available to Freddie Mac by the... Inactivation (Inactivate) The process of suspending the remittance of funds for a Mortgage in the Accounting Cycle it becomes 120 days delinquent P&I Draft Date Newly funded Mortgage A Mortgage that was sold to Freddie Mac during the current Accounting Cycle Reinstatement (Reinstate) A Mortgage that the Servicer inactivated during a previous Accounting Cycle that the Borrower has partially or fully reinstated or for which the Servicer has completed a loan modification Principal balance correction A Mortgage on which the ending UPB is higher than the beginning UPB for a reason other than negative amortization Deed-in-lieu of foreclosure A Borrower’s voluntary conveyance of clear title to the property with Freddie Mac’s approval in exchange for a discharge of debt Applicable draft dates for the exception activity Activity (Parenthetical terms are used in the Freddie Mac Loan Level Reporting tool) (see Exhibit 88, Servicing Tools) Description Make funds available to Freddie Mac by the... FHA and VA foreclosure A property that did not sell at the foreclosure sale for which the Servicer has filed a claim with the FHA or VA Inactive Mortgages ■ No funds are due if the Mortgage was inactive ■ For details on credits for interest advanced for a delinquent Mortgage, refer to Section 8303.3(l) for deedsin-lieu of foreclosure, Section 8303.3(m) for FHA or VA foreclosure conveyance and Section 8303.3(n) for transfers to REO Active Mortgages If the Mortgage was active, report any interest due to Freddie Mac by the P&I Determination Date. Transfer to REO A property Freddie Mac acquired through foreclosure Principal balance adjustment due to court order A Mortgage on which the ending UPB is lower than the beginning UPB due to a court order. Includes court-ordered modifications and bankruptcy cramdowns. The date the loan appears on the “Loan Modification Status Report” available in the Freddie Mac Loan Level Reporting tool.

(d) Reporting requirements for SCRA interest capped Mortgages (i) Monthly reporting requirements for SCRA Mortgages In addition to the loan-level transaction the Servicer must transmit to Freddie Mac each month, the Servicer must also submit the following report, if applicable: ■ Supplemental accounting report of SCRA Mortgages ■ If the Servicer elects to report adjustments to each SCRA-capped Mortgage on a monthly basis, the Servicer must submit its report (see Exhibit 71, CSV File Format to Report Loans Eligible for the SCRA Interest Rate Subsidy) to Freddie Mac (see Directory 3) no later than three Business Days prior to the end of the Accounting Cycle (ii) Quarterly reporting requirements for SCRA interest rate capped Mortgages If the Servicer elects to report adjustments to each SCRA-capped Mortgage on a quarterly basis, the Servicer must submit its report (see Exhibit 71) to Freddie Mac (see Directory 3) no later than the third Business Day prior to the end of the calendar month in March, June, September and December.