Freddie Mac Single-Family Seller/Servicer Guide §9203.3 — Forbearance plans and requirements (05/01/26)
Freddie Mac Guide §9203.3 (Forbearance plans and requirements). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §9203.3 — Forbearance plans and requirements (05/01/26) — 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 9203.3
(05/01/26) 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 forbearance? ■ Requirements for a forbearance plan ■ Borrower contact requirements when transitioning from a forbearance plan ■ Borrowers in a Trial Period Plan ■ Forbearance plan termination ■ Other forbearance plan conditions and requirements (a) What is a forbearance? A forbearance plan is a written agreement between the Servicer and the Borrower (or deceased Borrower’s estate) that reflects the terms of the forbearance, including whether the Borrower may make either reduced or no monthly payments for a specific period of time. If
Freddie Mac Guide 9203.3
203-31 the Servicer achieves quality right party contact and the Borrower meets the eligibility criteria for a forbearance plan in accordance with Section 9203.3(b), the Servicer must offer: ■ An initial forbearance term for a period of one to three months, and, if necessary ■ One or more forbearance term extensions of one to three months The forbearance plan may not be extended beyond a date that would cause the Delinquency to exceed a cumulative total of 12 months of the Borrower’s contractual monthly Mortgage payment, including taxes and insurance, if the Servicer is collecting Escrow for those expenses, without prior approval from Freddie Mac. Prior to the expiration of the initial and any extension to the forbearance plan, the Servicer must evaluate the Borrower’s eligibility for an extension of the initial forbearance plan based on quality right party contact. Each forbearance plan evaluation, including an evaluation for a forbearance plan extension, must be completed in accordance with all eligibility requirements described in this section and Sections 9203.3(b) through 9203.3(f). Additionally, there is no limit on the number of forbearance plans that an eligible Borrower can receive over the life of the Mortgage. Exhibit 93, Evaluation Notices, includes forbearance agreements that a Servicer may use but must amend as necessary to comply with the requirements of this section, Sections 9203.3(b) through 9203.3(f) and applicable law. At the end of the forbearance period, the Borrower must cure the Delinquency through one of the following options: ■ Full reinstatement of the Mortgage ■ Partial reinstatement followed by a repayment plan ■ Payment of the Mortgage in full ■ A repayment plan ■ A loan modification ■ Pay off the Mortgage through a short sale or deed-in-lieu of foreclosure A loan modification is a type of workout option that enables the Borrower to retain homeownership (see Section 9201.6). If the Borrower can no longer afford to retain the property, the Servicer must pursue a workout option to liquidate the Borrower’s interest in the property (see Section 9201.6), such as a short sale, deed-in-lieu of foreclosure, a workout Mortgage assumption, or a simultaneous modification and assumption. Workout options and Servicing Mortgages impacted by disaster requirements
Freddie Mac Guide 9203.3
203-32 Topic Guide location Freddie Mac Flex Modification® Chapter 9206 Workout Mortgage assumption Chapter 9207 Freddie Mac Standard Short Sale Chapter 9208 Freddie Mac Standard Deed-in-Lieu of Foreclosure Chapter 9209 Charge-off Chapter 9210 Servicing Mortgages impacted by a disaster Chapter 8404 (b) Requirements for a forbearance plan Servicers may use Resolve® to report forbearance plans to Freddie Mac. Servicers should refer to Resolve Online Help for details on the use of the Resolve to report forbearance plans. Note: When forbearance plans are submitted via Resolve, the system will report the associated EDR default action codes on behalf of the Servicer. (i) Borrower eligibility requirements for a forbearance plan To be eligible for a forbearance plan, the Borrower: ■ Must have an eligible hardship as described in Section 9202.1(b) and Form 710, Mortgage Assistance Application. The Borrower’s hardship may be verbally stated. The Servicer must report the hardship reason via EDR in accordance with Section 9102.6. ■ May be either current or delinquent, but the forbearance plan must not result in an overall Mortgage Delinquency that exceeds 360 days (i.e., to be in an active forbearance plan, the Borrower must not have missed more than 12 contractual monthly Mortgage payments) Note: No Borrower documentation or written application (e.g., Form 710 or a Servicer’s customized equivalent of Form 710) is required from the Borrower; however, the Servicer must achieve quality right party contact in accordance with the requirements in Section 9102.3(b). (ii) Mortgage eligibility and exclusions for a forbearance plan
Freddie Mac Guide 9203.3
203-33 Mortgages secured by the Borrower’s Primary Residence, even if vacant, are eligible for forbearance. The following Mortgages are ineligible for forbearance: ■ Mortgages secured by abandoned or condemned properties ■ Mortgages secured by second homes or Investment Properties (iii)Forbearance plan agreement with the Borrower The Servicer must determine the terms of the forbearance agreement based on discussions with the Borrower. The forbearance agreement: ■ Must be provided to the Borrower in writing and signed by the Servicer. The document does not have to be signed by the Borrower or returned to the Servicer as a condition of the forbearance plan. ■ Must indicate the duration of the forbearance plan, including the effective date, the expiration date of the forbearance plan and, if applicable, the due date of the first payment and the amount of such payment. Note: See Section 9203.3(b)(iv) for additional information about reduced payments (if applicable) under a forbearance plan. ■ Must state that, at the end of the forbearance period, the Borrower must either: ❑ Cure the Delinquency through a full reinstatement, partial reinstatement plus repayment plan or a repayment plan, or payoff of the Mortgage, or ❑ Submit a complete Borrower Response package to be evaluated for a workout option prior to the conclusion of the plan Note: Refer to Sections 9203.1(a) through 9203.2(d) for requirements on reinstatements and repayment plans and to Chapters 9206 through 9210 for requirements on workout options. ■ Must state that foreclosure proceedings are suspended during the forbearance period so long as the Borrower complies with the forbearance agreement and that, unless prohibited by applicable law, the Servicer may recommence foreclosure at the point it was suspended if the Borrower defaults on the forbearance plan ■ May include a requirement to pay any accrued late charges due from the Borrower at the time the Servicer entered into the forbearance agreement with the Borrower. The Servicer must not accrue or collect late charges from the Borrower during the forbearance period, or any subsequent repayment plan period, if the Borrower is
Freddie Mac Guide 9203.3
203-34 complying with the terms of such agreements. If the Borrower defaults on the terms of the forbearance agreement, late charge accrual may recommence from the date the Borrower defaulted on the agreement. (iv) Reduced payments under a forbearance plan If a monthly payment is required under the terms of a forbearance plan: ■ Such payment must be less than the Borrower’s monthly contractual Mortgage payment, including, as applicable, principal, interest and Escrow payments ■ The Servicer must receive such payment from the Borrower on or before the last day of the month in which it is due. If the Borrower fails to make timely forbearance payments, the forbearance plan must be canceled unless the Servicer determines that there are mitigating circumstances that caused the payment to be late. If there are mitigating circumstances that prevents the Borrower from making the required reduced payment, the Servicer may determine whether to amend the forbearance plan to further reduce the required payment or allow the Borrower to make no payments under a new forbearance plan agreement. If the Borrower fails to make timely payments and there are no mitigating circumstances, the Servicer must: ■ Evaluate the Borrower for other alternatives to foreclosure (e.g., solicit the Borrower for a complete Borrower Response Package ■ Conduct an evaluation for a streamlined offering of the Freddie Mac Flex Modification) and otherwise, pursue foreclosure in accordance with Chapter 9301. ■ Use good business judgment to determine whether forbearance payments were received timely or if mitigating circumstances (such as a further reduction in income) caused the payment to be late. Exceptions to the timely payment requirement must be documented and retained in the Mortgage file. (c) Borrower contact requirements when transitioning from a forbearance plan (i) Contact requirements The Servicer has discretion to determine the appropriate frequency to contact the Borrower. However, the Servicer must initiate contact no later than 30 days prior to any forbearance plan end date. Borrower contact must continue until quality right party contact is achieved or until the forbearance plan has expired. If quality right party contact is achieved, the Servicer must determine whether:
Freddie Mac Guide 9203.3
203-35 ■ The Borrower’s hardship has been resolved ■ The Borrower intends to remain in the Mortgaged Premises ■ The Borrower must submit a complete Borrower Response Package to be evaluated for other workout or liquidation options; and ■ The Borrower is eligible for a streamlined modification offer for a Freddie Mac Flex Modification under Chapter 9206 The Servicer may use alternative outreach methods to contact the Borrower as permitted by applicable law, including, but not limited to, e-mail, text messaging, voice response unit technology or a Servicer’s web portal. In addition, the Servicer is authorized to mail, fax or electronically transmit the Borrower Solicitation Package or its equivalent to the Borrower. (ii) Post-forbearance plan – solicitations In order to promote a more seamless transition between loss mitigation options when a Borrower who was on a forbearance completes the forbearance plan without a solution to the Delinquency, the table below provides requirements for Servicers to conduct reviews for proactive Payment Deferral and Freddie Mac Flex Modification offers. Post forbearance plan – Payment Deferral If…. Then… The Borrower’s forbearance plan ends and the Servicer is unable to establish quality right party contact to evaluate for a post-forbearance solution to the Delinquency. The Servicer must evaluate the Borrower for a proactive offer for a Payment Deferral in accordance with the eligibility criteria described below. If eligible, the Servicer must send the Borrower a proactive offer for a Payment Deferral by the 15th day following expiration of the forbearance 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
Freddie Mac Guide 9203.3
203-36 The Servicer must solicit the Borrower using Exhibit 1102, Payment Deferral Post- Forbearance 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 1102 or 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 and/ or during the processing month if, as of the date of evaluation: ■ The Mortgage is six 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 Payment Deferrals In these circumstances, the Servicer must complete the Payment Deferral within the month of the solicitation or processing month after receipt of the Borrower’s full monthly contractual payment due during that month. While the current month’s payment remains due because of delinquency and/or cumulative deferred payment requirements, the Servicer must send the proactive offer with the condition that a payment or payments are required to be eligible to complete the Payment Deferral. Once the payment or payments have been received and the Mortgage becomes eligible, the Servicer can proceed to settlement. Post forbearance plan – Freddie Mac Flex Modification If… Then… ■ The Borrowers forbearance plan ends, and ■ The Servicer has not established quality right party contact to evaluate for a post-forbearance solution to the delinquency, and The Servicer must evaluate the Borrower for a proactive offer for a Flex Modification, in accordance with the eligibility criteria described below. If eligible, the Servicer must send the Borrower a proactive offer for a Flex Modification by the 15th day of the month following the expiration of the forbearance plan.
Freddie Mac Guide 9203.3
203-37 ■ The Borrower is ineligible for a proactive offer for a Payment Deferral ■ The Borrowers forbearance plan ends, and ■ The Servicer has not established quality right party contact to evaluate for a post-forbearance solution to the delinquency, 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 Flex Modification, in accordance with the eligibility criteria described below. If eligible, the Servicer must send the Borrower a proactive offer for a 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 Flex Modification in accordance with the requirements of Section 9206.1(c)(iii). Solicitation The Servicer must send the Borrower Exhibit 1191 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. (d) Borrowers in a Trial Period Plan If a Borrower was in a Trial Period Plan prior to entering into a forbearance plan, the Borrower may be re-evaluated for a new Trial Period Plan within 30 days prior to or upon completion of the forbearance plan. The Servicer must not resume or restart the terms of the previous Trial Period Plan prior to the start of the forbearance plan. Instead, the Servicer must evaluate the Borrower based on the status of the Mortgage at the time of the new evaluation. If the Borrower meets all eligibility requirements upon completion of the forbearance plan and accepts a new Trial Period Plan offer, the Borrower will be required to start a new Trial Period Plan. For any subsequent modification submissions, the Trial Period Plan prior to the start of the forbearance plan will not be considered a failed Trial Period Plan for a Freddie Mac Flex Modification evaluation.
Freddie Mac Guide 9203.3
203-38 (e) Forbearance plan termination The forbearance plan must be terminated if: ■ The Servicer determines that the Borrower has failed to meet the terms specified in the forbearance plan agreement ■ Any of the eligibility criteria for the forbearance plan is no longer satisfied ■ The Servicer becomes aware that the Borrower’s hardship is resolved; or ■ The Borrower requests termination of the forbearance plan (f) Other forbearance plan conditions and requirements (i) Notifying Freddie Mac of forbearance plans via EDR At the end of the forbearance plan, the Servicer must work with the Borrower to cure the Delinquency via a reinstatement or repayment plan, or by completing a workout option. The Servicer must evaluate the Borrower in accordance with the loss mitigation hierarchy described in Section 9201.2 and must also comply with the appropriate EDR reporting requirement to inform Freddie Mac about the solution entered into. Example: If the Servicer enters into a repayment plan with the Borrower, the Servicer must report the repayment plan via EDR according to Section 9203.2(d). If the Borrower enters into a workout option that brings the account current, such as a settled modification or payment deferral, the Servicer must no longer report the EDR code for forbearance. Note: For additional information about EDR, refer to Section 9102.6. (ii) Forbearance plans for Mortgages subject to recourse For Mortgages subject to recourse including but not limited to indemnification, Servicers are strongly encouraged, but not required, to consider eligible Borrowers for a forbearance plan. Entering into a forbearance agreement (whether approved by Freddie Mac or the Servicer) does not waive, delete, alter or supersede any recourse or indemnification requirements set forth in the Servicer’s Purchase Documents and any other documents containing recourse or indemnification obligations, and such recourse or indemnification obligations will remain in full force and effect. (iii) Credit reporting for Mortgages in a forbearance plan Servicers must continue to report a “full-file” status to the four major credit repositories for each Mortgage in a forbearance plan in accordance with the Fair Credit Reporting Act
Freddie Mac Guide 9203.3
203-39 and credit bureau standards as provided by the Consumer Data Industry Association. See Exhibit 51, Credit Repositories and Information to Report. (iv) Servicer policy and procedures for forbearance plans The Servicer must have written forbearance plan policies and procedures describing how to: ■ Determine the Borrower’s hardship ■ Determine whether to require a reduced payment and any payment amount; and ■ Document the Servicer’s decision-making process, including, but not limited to, its application of discretion or business judgement The Servicer must consistently apply these policies and procedures.