Freddie Mac Single-Family Seller/Servicer Guide §9203.2 — Repayment plan requirements and reporting (04/27/26)
Freddie Mac Guide §9203.2 (Repayment plan requirements and reporting). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §9203.2 — Repayment plan requirements and reporting (04/27/26) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 9203.2
(04/27/26) Refer to Bulletin 2026-2, which announced updates related to Resolve® reporting requirements for repayment plans and forbearance agreements. Servicers may implement the new requirements prior to the mandatory October 1, 2026 version of this section if they are operationally ready to do so. This section contains information related to: ■ What is a repayment plan? ■ Repayment plan requirements ■ Additional requirements for Mortgages with buydown funds ■ Servicer approval authority for repayment plans ■ Reporting repayment plans (a) What is a repayment plan? A repayment plan is an agreement between the Servicer and a Borrower that gives the Borrower a defined period of time to reinstate the Mortgage by paying normal regular payments plus an additional agreed upon amount in repayment of the Delinquency. (b) Repayment plan requirements
Freddie Mac Guide 9203.2
203-16 (i) Repayment plan requirements For a Borrower to enter into a repayment plan, the Borrower must have the financial capacity to bring the Mortgage current. Any repayment plan must: 1. Lead to full reinstatement or payoff at the conclusion of the plan 2. Be in writing and must specify: ■ The total amount to be repaid ■ The beginning and end dates of the repayment period ■ The exact amount of the repayment plan payment that will be added to the Borrower’s regular monthly payment ■ That the Borrower must pay all scheduled monthly payments during the period of the repayment plan ■ That the Borrower must continue monthly payments according to the terms of the Note at the end of the plan ■ That the Borrower agrees that the foreclosure proceedings are suspended during the repayment plan and that the Servicer is entitled to recommence foreclosure at the point the foreclosure was suspended, if applicable, if the Borrower defaults on the repayment plan Exhibit 93, Evaluation Notices, includes a model repayment plan that a Servicer may use and amend as necessary to comply with the requirements of this section and applicable law. 3. Be sent to the Borrower. The document does not have to be signed by the Borrower or returned to the Servicer as a condition of the repayment plan. However, the Borrower must make the first payment due if the Mortgage is in foreclosure at the time the repayment plan offer is extended in order to accept the terms of the plan. The repayment agreement must then contain a stipulation that the Servicer is entitled to recommence foreclosure at the point the foreclosure was suspended if the Borrower defaults on the repayment plan, unless otherwise prohibited by applicable law. The Servicer must keep as part of the Mortgage file: ■ The repayment plan (do not send Freddie Mac a copy)
Freddie Mac Guide 9203.2
203-17 ■ The specifics of the repayment plan and the date the Servicer negotiated it with the Borrower ■ When the Servicer sent it to the Borrower, if the plan exceeds three months ■ The reason the Servicer agreed to the repayment plan 4. Have a term greater than one month and less than or equal to 12 months, unless a greater term is approved by Freddie Mac in writing or otherwise permitted for repayment of delinquent taxes, as outlined in Section 9203.2(c) The repayment plan may include any accrued late charges due from the Borrower at the time the Servicer entered into the repayment plan with the Borrower. However, if the Borrower is paying as stipulated in the agreement, the Servicer must not accrue or collect late charges from the Borrower during the repayment plan. If the Borrower defaults on the terms of the repayment plan, late charge accrual may recommence from the date the Borrower defaulted on the plan. (ii) Failed repayment plan Once a Borrower accepts a repayment plan, the Borrower must meet the terms specified in the repayment plan agreement. The repayment plan has failed if: ■ The Servicer determines that the Borrower has failed to meet the terms specified in the repayment plan agreement ■ The Borrower no longer has the financial capacity to bring the Mortgage current ■ The Borrower accepts a repayment plan and does not make the total monthly repayment plan payment by the end of the month in which the repayment plan payment is due (iii) Failed repayment plan – solicitations In order to promote a more seamless transition between loss mitigation options when a Borrower is unable to resolve their Delinquency with a repayment plan, the table below provides requirements for Servicers to conduct reviews for proactive Payment Deferral and Freddie Mac Flex Modification® offers following an unsuccessful repayment plan. Failed repayment plan – Payment Deferral If…. Then… The Borrower accepts an offer for a repayment plan but does not make the total monthly repayment plan payment The Servicer must evaluate the Borrower for a proactive offer for a Payment Deferral in accordance with the eligibility criteria
Freddie Mac Guide 9203.2
203-18 by the end of the month in which it is due (“fails a repayment plan”), and the Servicer is unable to establish quality right party contact. described below. If eligible, the Servicer must send the Borrower a proactive offer for a Payment Deferral by the 15th day of the following month (i.e., the 15th day of the month following the month Borrower fails a repayment plan). Eligibility The Borrower must be eligible for a Payment Deferral in accordance with the requirements of this chapter. However: ■ The Servicer is not required to have established quality right party contact, as described in Section 9203.4(c), and ■ The Servicer is not required to confirm that the Borrower meets the Borrower eligibility requirements described in Section 9203.4(c)(i) Solicitation requirements The Servicer must solicit the Borrower using Exhibit 1105, Payment Deferral Post- Repayment Plan Solicitation Cover Letter, with Exhibit 1100, Payment Deferral Agreement, or its equivalent, making any appropriate changes to comply with applicable law. While use of Exhibits 1105 and 1100 is optional, it reflects the minimum level of information that the Servicer must communicate and illustrates a level of specificity that complies with the requirements of the Guide. The Servicer must include instruction on how to accept the offer in the Payment Deferral agreement. The Servicer is authorized to consider the following as acceptance by the Borrower, subject to applicable law: ■ The Borrower contacting the Servicer directly in accordance with any acceptable outreach and communication method ■ The Borrower returning an executed Payment Deferral agreement, or ■ Any other method evidencing the Borrower’s acceptance as determined by the Servicer The Borrower must make their full monthly contractual payment during the month of solicitation if, as of the date of evaluation: ■ The Mortgage is 6 months delinquent, or ■ The Payment Deferral would cause the Mortgage to exceed 12 months of cumulative deferred past-due principal and interest payments resulting from non- disaster Payment Deferrals In these circumstances, the Servicer must complete the Payment Deferral within the month of the solicitation after receipt of the Borrower’s full monthly contractual payment due during that month.
Freddie Mac Guide 9203.2
203-19 Note: If the Servicer uses a processing month to complete the Payment Deferral, the Borrower must also make his or her full monthly contractual payment during the processing month. The Servicer must complete the Payment Deferral within the processing month after receipt of the Borrower’s full monthly contractual payment during that month. Failed repayment plan – Freddie Mac Flex Modification If… Then… ■ The Borrower fails a repayment plan, and ■ The Servicer has not established quality right party contact, and ■ The Borrower is ineligible for a proactive offer for a Payment Deferral The Servicer must evaluate the Borrower for a proactive offer for a Freddie Mac Flex Modification in accordance with the eligibility criteria described below. If eligible, the Servicer must send the Borrower a proactive offer for a Freddie Mac Flex Modification by the 15th day of the following month (i.e., the 15th day of the month following the month the Borrower fails a repayment plan). ■ The Borrower fails a repayment plan, and ■ The Servicer has not established quality right party contact, and ■ The Borrower was eligible for a proactive offer for a Payment Deferral, but did not accept the offer by the acceptance date provided in the Payment Deferral agreement The Servicer must evaluate the Borrower for a proactive offer for a Freddie Mac Flex Modification in accordance with the eligibility criteria described below. If eligible, the Servicer must send the Borrower a proactive offer for a Freddie Mac Flex Modification by the 15th day following the expiration of the Payment Deferral offer. Eligibility 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).
Freddie Mac Guide 9203.2
203-20 Solicitation requirements The Servicer must send the Borrower Exhibit 1191, Freddie Mac Flex Modification Solicitation Cover Letter, and the Exhibit 93 template for the Freddie Mac Flex Modification Trial Period Plan Solicitation Offer – not based on an evaluation of a Borrower Response Package evaluation notice, or its equivalent. Exhibits 1191 and 93 may be altered at the Servicer’s discretion as it deems necessary to meet the requirements of this section and Chapter 9206 and to comply with disclosure and other requirements under applicable law. (c) Additional requirements for Mortgages with buydown funds The additional requirements for Mortgages with buydown funds are as follows: ■ When processing repayment plans for Mortgages subject to a temporary subsidy buydown plan in accordance with Section 4204.3, the Servicer must not apply funds in a buydown account to reduce the total amount to be repaid in accordance with the requirements of a repayment plan as specified in Section 9203.2(b)(i) unless it is required under the terms of the applicable buydown agreement ■ Upon entering a repayment plan, the Borrower must resume their payment amount as specified in the terms of the buydown agreement, subject to applicable law and the terms of the buydown agreement. In addition, the Borrower must pay the amount required to resolve the Delinquency within the agreed-upon repayment plan term.* ■ If the buydown term has expired or if, for any reason, the buydown funds are not available or the buydown funds are not paid, the Borrower is responsible to continue to make full monthly Mortgage payments as required by the terms of the Note (plus the amount required to resolve the delinquency within the agreed-upon repayment plan term, if any such amounts remain). ■ In addition to the repayment plan requirements in Section 9203.2(b)(i), the Servicer must make the appropriate changes to the evaluation notice as necessary to reflect any buydown fund contributions and the Borrower's portion of the payment in accordance with the buydown agreement ■ Any remaining funds held in association with a buydown account, upon the end of the buydown term or the liquidation of the Mortgage, whichever occurs first, the Servicer must distribute in accordance with applicable law and per the buydown agreement or apply to the Mortgage consistent with Section 4204.3(e) * Application of each monthly payment must continue to be applied in accordance with the terms of the buydown agreement, applicable law and the Guide. (d) Servicer approval authority for repayment plans
Freddie Mac Guide 9203.2
203-21 Servicers may use Resolve® to report repayment plans to Freddie Mac. Servicers should refer to Resolve Online Help for details on the use of the Resolve to report repayment plans. Note: When repayment plans are submitted via Resolve, the system will report the associated EDR default action codes on behalf of the Servicer. The Servicer must obtain Freddie Mac’s approval for a repayment plan that exceeds 12 months in duration unless the repayment plan includes the repayment of delinquent taxes. To obtain Freddie Mac’s approval, the Servicer must submit the following to Freddie Mac (see Directory 5): 1. Form 105, Multipurpose Loan Servicing Transmittal 2. The complete Borrower Response Package. (See Section 9102.5 for a description of the Borrower Response Package.) The Servicer may approve a repayment plan that has a term greater than one month and less than or equal to 12 months without obtaining Freddie Mac’s approval, as outlined in the table below: Repayment plan requirements For all repayment plans… In addition, if… Then… ■ The monthly repayment plan payment amount must not exceed 150% of the contractual Mortgage payment (including taxes and insurance if the Servicer is collecting Escrow for such expenses) ■ The Borrower may make a payment that is applied prior to the Servicer’s repayment plan evaluation (i.e., a Borrower may make a payment that may have a favorable ■ The Mortgage is less than or equal to 90 days delinquent; and ■ The repayment plan term does not exceed six months in length ■ A Borrower Response Package is not required; ■ Quality right party contact is required to verify that the Borrower has the financial capacity to bring the Mortgage current and cure the Delinquency as a result of the repayment plan ■ The Mortgage is greater than 90 days delinquent; or ■ The repayment plan term exceeds six months in length ■ A Borrower Response Package is required ■ Repayment plan terms that exceed 12 months in length must be submitted to Freddie Mac for review and approval ■ The Servicer must evaluate the Borrower for a
Freddie Mac Guide 9203.2
203-22 Repayment plan requirements For all repayment plans… In addition, if… Then… impact to the repayment plan terms) ■ The repayment plan must be in writing (refer to Section 9203.2(b) for complete requirements for the written notice.) streamlined offer for a Freddie Mac Flex Modification if the Mortgage is greater than 90 days delinquent. However, if the Servicer has established quality right party contact and verified that the Borrower has the financial capacity to bring the Mortgage current and cure the Delinquency as a result of a repayment plan, then the Servicer must offer the Borrower a repayment plan. In addition, if there is no Escrow account on the Mortgage for taxes, and taxes are not current or the Borrower has not entered into a repayment plan with the taxing jurisdiction, then the Servicer may approve a repayment plan of up to 18 months under the following conditions: ■ The Servicer must pay the delinquent taxes, and ■ The Servicer must set up an Escrow account for future taxes if the repayment period exceeds three months. In this case only, the Servicer may extend the repayment period to no more than 18 months. The Servicer must document its reasons for approving a repayment plan in the Mortgage file. (e) Reporting repayment plans In accordance with Section 9102.6, the Servicer must: ■ Notify Freddie Mac via an EDR transmission with specific repayment plan activity after the Servicer has entered into a repayment plan with a Borrower ■ Receive a repayment plan payment to validate the repayment plan and report default action code 12 (Repayment Plan) once the initial repayment plan payment is received ■ Continue reporting this code for each month of the repayment period, except for the last month of the repayment period in which the Mortgage will be fully reinstated
Freddie Mac Guide 9203.2
203-23 ■ Continue to report that the Borrower is in a repayment plan until the Borrower has fully reinstated the Mortgage or the Borrower defaults on the repayment plan If the Borrower fails to make a payment due under the repayment plan, the Servicer must discontinue reporting default action code 12. Note: For additional information about EDR, refer to Section 9102.6.
Freddie Mac Guide 9203.2
Repayment plan requirements and reporting (Future effective date 10/01/26) This section contains information related to: ■ What is a repayment plan? ■ Repayment plan requirements ■ Additional requirements for Mortgages with buydown funds ■ Servicer approval authority for repayment plans ■ Reporting repayment plans (a) What is a repayment plan? A repayment plan is an agreement between the Servicer and a Borrower that gives the Borrower a defined period of time to reinstate the Mortgage by paying normal regular payments plus an additional agreed upon amount in repayment of the Delinquency. (b) Repayment plan requirements (i) Repayment plan requirements For a Borrower to enter into a repayment plan, the Borrower must have the financial capacity to bring the Mortgage current. Any repayment plan must: 1. Lead to full reinstatement or payoff at the conclusion of the plan 2. Be in writing and must specify: ■ The total amount to be repaid