Freddie Mac Single-Family Seller/Servicer Guide 9203.4 — Payment Deferral eligibility, processing, conditions and requirements

(H) Texas Equity Section 50(a)(6) Mortgages If the Borrower is eligible and qualifies for a Disaster Payment Deferral, the Servicer must offer the Disaster Payment Deferral to the Borrower. If the Servicer receives Borrower notification classifying the Disaster Payment Deferral as a loan modification and claiming that the terms of the modification agreement do not comply with the provisions of Article XVI Section 50(a)(6) of the Texas Constitution, the Servicer must notify Freddie Mac within seven Business Days of receipt of such objection or complaint via Freddie Mac Servicing Data Corrections and include the following: ■ Freddie Mac loan number ■ Servicer loan number ■ Transaction type (e.g., Texas Home Equity modification) ■ Accounting Cycle in which Freddie Mac settled the workout ■ Servicer’s analysis (e.g., Borrower complaint related to Section 50(a)(6) of the Texas Constitution) Upon receipt of Freddie Mac’s instructions, the Servicer must comply with any required response time frames to claims of defects and any other complaint in accordance with Section 8104.1(a) and the Texas Constitution. (ii) Determining Disaster Payment Deferral terms Based on the information provided by the Servicer, Resolve will determine the terms of the Disaster Payment Deferral as described in this Section 9203.4(i)(ii). If the existing Mortgage includes a non-interest bearing UPB as a result of a prior modification, the terms impacting that non-interest bearing UPB will remain unchanged. The Servicer must: ■ Apply the Payment Deferral forbearance as follows: Defer the delinquent principal and interest and any other expenses or amounts that are permitted to be capitalized under the Freddie Mac Flex Modification capitalization rules in Section 9206.3(b)(ii) into an existing or newly created non-interest bearing UPB (i.e., deferred UPB). The deferred UPB will become due on the earlier of: ❑ The Mortgage maturity date ❑ The Mortgage payoff date (e.g., refinance or payoff of the interest-bearing UPB), or ❑ The transfer or sale of the Mortgaged Premises ■ Advance the DDLPI to bring the Mortgage to current status ■ Ensure the remaining payment schedule associated with the interest-bearing UPB remains unchanged from the Mortgage’s pre-Disaster Payment Deferral payment schedule ■ Waive all accrued and unpaid late charges upon completion of the Payment Deferral When offering the Payment Deferral, the Servicer must ensure all other remaining terms of the existing Mortgage remain unchanged, including, but not limited to the: ■ Remaining amortization schedule ■ Monthly P&I portion of the existing contractual monthly Mortgage payment ■ Interest rate, including maintaining the existing rate adjustment schedule for an ARM or a Step-Rate Mortgage ■ Maturity date ■ Due Dates of the remaining payment due under the Mortgage Note: The maximum number of monthly payments that may be deferred as part of a Disaster Payment Deferral is 12. Prior to or during the Servicer’s determination of the Borrower’s eligibility for a Disaster Payment Deferral, the Servicer must analyze the Borrower’s Escrow to estimate if there is an Escrow shortage. If the Servicer completed an estimated analysis during evaluation, then upon completion of the Disaster Payment Deferral, the Servicer must perform a new Escrow analysis in accordance with the RESPA and any applicable federal, State or local law. If, as a result of the analysis, the Servicer determines that there is an Escrow shortage, the Servicer must disclose the amount of the shortage to the Borrower before the Borrower accepts the Disaster Payment Deferral. If the Borrower is unable to pay the Escrow shortage as a lump sum, then the Borrower must pay the shortage as part of the monthly PITI payment. If the Borrower must make monthly Escrow shortage payments, then the Servicer must: ■ Spread the repayment of the Escrow shortage amount in equal monthly payments over a period of 60 months, unless the Borrower chooses to pay off the shortage over a shorter period of time (not to be less than 12 months) ■ Take into account any remaining unpaid amount of the Escrow shortage in any subsequent Escrow analysis to ensure that the Borrower is able to continue to pay all Escrow shortage amounts over the remaining portion of either the current remaining Escrow shortage repayment period or a period up to 60 months. The Servicer may not accelerate or compress the remaining Escrow shortage amount into a new Escrow payment or shorter repayment period as a result of a future Escrow analysis. If the Borrower is unable to afford a Disaster Payment deferral based on the increased monthly payment resulting from an Escrow shortage repayment, the Servicer must evaluate the Borrower for a Freddie Mac Flex Modification. Any Escrow account shortage that is identified at the time of the Payment Deferral must not be capitalized, and the Servicer is not required to fund any existing Escrow account shortage. Any Escrow advances must be included in the deferred balance, as described in the “Delinquent Disaster Payment Deferral” section above. In addition, the Servicer is not required to revoke any Escrow account waiver. (iii)Completing a Disaster Payment Deferral The Servicer must send a Payment Deferral agreement (Exhibit 1100 or the Servicer’s customized equivalent of the Payment Deferral agreement) to the Borrower no later than five days after completion (e.g., a settled workout option) of the Payment Deferral. If the Servicer elects to require the Borrower to sign and return the Payment Deferral agreement, it must receive the fully executed Payment Deferral agreement prior to the settlement date. Use of the Payment Deferral agreement is optional. It reflects the minimum level of information that the Servicer must communicate to the Borrower, and it illustrates a level of specificity that is deemed to be in compliance with the requirements of the Guide. The Servicer must ensure the Payment Deferral agreement complies with applicable federal, State or local law. When processing a Payment Deferral agreement, the Servicer must also comply with the following requirements:

(A) Maintaining lien status The Servicer’s application of a Disaster Payment Deferral to the Mortgage must not impair Freddie Mac’s First Lien position or enforceability against the Borrower(s) in accordance with its terms.

(B) Title endorsement Title endorsement is not required.

(C) Document Custodian After the Servicer has sent the executed Payment Deferral agreement to the Borrower as required in this section: ■ If the Payment Deferral agreement is not required to be signed by the Borrower, the Servicer must send a copy of the Servicer-executed Payment Deferral agreement to the Document Custodian within 25 days of the effective date of the Payment Deferral completion ■ If the Payment Deferral agreement is to be recorded, the Servicer must: • Send a certified copy of the fully executed Payment Deferral agreement to the Document Custodian within 25 days of the effective date of the Payment Deferral, and • Send the original Payment Deferral agreement that is returned from the recorder’s office to the Document Custodian within five Business Days of receipt ■ If the Payment Deferral agreement must be signed by the Borrower but not recorded, the Servicer must send the fully executed original Payment Deferral agreement to the Document Custodian within 25 days of the effective date of the Disaster Payment Deferral (iv) Processing month The Servicer must complete the Disaster Payment Deferral in the same month it determines the Borrower is eligible. If the Servicer is unable to complete the Disaster Payment Deferral before the 15th day of the evaluation month, then the Servicer is authorized to use an additional month to allow for sufficient processing time (a “processing month”) to complete the Disaster Payment Deferral. The Servicer must treat all Borrowers equally in applying the processing month, as evidenced by a written policy (i.e., the criteria for requiring a processing month must be the same for all Borrowers). The Borrower must make a complete monthly contractual payment during the processing month if, as of the date of evaluation, the Mortgage is 360 days delinquent or more. In this circumstance, the Servicer must complete the Disaster Payment Deferral within the processing month after the 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 become 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. (v) Disaster Payment Deferral agreement The Servicer must process a Disaster Payment Deferral agreement in compliance with the requirements for processing a regular Payment Deferral agreement, as described in Section 9203.4(f). (vi) Evaluation hierarchy To be eligible for a Disaster Payment Deferral, a Borrower must have been current or less than 60 days delinquent (i.e., less than two months delinquent) as of the date of the Eligible Disaster. Otherwise, the Servicer must conduct all loss mitigation evaluations in accordance with Freddie Mac’s standard loss mitigation evaluation hierarchy, as described in Section 9201.2, or must submit an exception request for Freddie Mac approval. If quality right party contact is established with a Borrower who was current or less than 60 days delinquent (i.e., less than two months delinquent) as of the date of the Eligible Disaster and the Borrower is unable to resolve the Delinquency through a reinstatement or repayment plan, the Servicer must evaluate the Borrower for the loss mitigation options in the following Disaster evaluation hierarchy: 1. Disaster Payment Deferral 2. Freddie Mac Flex Modification 3. Standard Short Sale 4. Standard Deed-in-Lieu of Foreclosure Note: In most cases, Borrowers impacted by an Eligible Disaster who qualify to be evaluated for a Disaster Payment Deferral will be transitioning from a forbearance plan, but forbearance is not a prerequisite. (vii) Post-forbearance plan – solicitation for a Disaster Payment Deferral In order to promote a more seamless transition between loss mitigation options when a Borrower who was on a disaster-related forbearance completes the forbearance plan without a solution to the delinquency, the table below provides requirements for Servicers to conduct reviews for proactive Disaster Payment Deferral and Freddie Mac Flex Modification offers: Post forbearance plan – Disaster 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 postforbearance solution to the delinquency. The Servicer must evaluate the Borrower for a proactive offer for a Disaster Payment Deferral in accordance with the eligibility criteria described below. If eligible, the Servicer must send the Borrower a proactive offer for a Disaster Payment Deferral by the 15th day following expiration of the forbearance plan. Eligibility The Borrower must be eligible for a Disaster Payment Deferral in accordance with the requirements of this chapter, except: ■ The Servicer is not required to have established quality right party contact, as described in Section 9203.4(i), and ■ The Servicer is not required to confirm that the Borrower meets the Borrower eligibility requirements described in Section 9203.4(i)(i) Solicitation requirements The Servicer must solicit the Borrower using Exhibit 1102, Payment Deferral PostForbearance Solicitation Cover Letter, with Exhibit 1100, 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 processing month if, as of the date of evaluation, the Mortgage is 12 months delinquent. In this circumstance, the Servicer must complete the Disaster Payment Deferral within the month of solicitation after receipt of the Borrower’s full contractual payment due during that month. 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(s) during the processing month if the Mortgage is 360 days delinquent or more. The Servicer must complete the Payment Deferral within the processing month after receipt of the Borrower’s full monthly contractual payment during that month. When processing these evaluations using Resolve, the Borrower is ineligible for a Payment Deferral until their payment is received. 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 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 Borrower is ineligible for a proactive offer for a Disaster 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 month following the expiration of the forbearance plan. ■ The Borrower’s 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 Disaster 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)(v). Solicitation The Servicer must send the Borrower Exhibit 1191A, Freddie Mac Post-Disaster Forbearance 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 1191A 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. (viii) Failed repayment plan - solicitation for a Disaster Payment Deferral 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 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. The Servicer must evaluate the Borrower for a proactive offer for a Disaster 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 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(i), and ■ The Servicer is not required to confirm that the Borrower meets the Borrower eligibility requirements described in Section 9203.4(i)(i) Solicitation requirements The Servicer must solicit the Borrower using Exhibit 1105, Payment Deferral PostRepayment Plan Solicitation Cover Letter, with Exhibit 1100 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 12 months delinquent. In this circumstance, the Servicer must complete the Disaster Payment Deferral within the month of solicitation after receipt of the Borrower’s full contractual payment due during that month. Note: If the Servicer uses a processing month to complete the Disaster Payment Deferral, the Borrower must also make his or her full monthly contractual payment(s) during the processing month if the Mortgage is 360 days delinquent or more. The Servicer must complete the Payment Deferral within the processing month after receipt of the Borrower’s full monthly contractual payment during that month. In these instances, when processing these evaluations using Resolve, the Borrower is ineligible for a Payment Deferral until their payment is received. 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 complete the Payment Deferral. Once the payment or payments have been received and the Mortgage becomes eligible, the Servicer can proceed to settlement. 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 Disaster 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 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 Disaster 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)(v). 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. (ix) Failed Disaster Payment Deferral – solicitations In order to promote a more seamless transition between loss mitigation options when a Borrower who accepted a Disaster Payment Deferral and is unable to remain current, the table below provides requirements for Servicers to conduct reviews for proactive Freddie Mac Flex Modification offers following an unsuccessful Disaster Payment Deferral. Failed Payment Deferral – Freddie Mac Flex Modification If… Then… The Borrower has accepted a Disaster 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 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 75th day of delinquency. 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)(v). 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 or 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. (x) Reduced Freddie Mac Flex Modification requirements In lieu of the Guide requirements for Freddie Mac Flex Modification eligibility in Sections 9206.1(c) and 9206.1(d), Mortgages will be excluded from eligibility only under the following circumstances: ■ The Mortgage is an FHA, VA or Guaranteed Rural Housing Mortgage ■ The Mortgage is subject to recourse ■ The Borrower is currently performing under another forbearance plan, Trial Period Plan or repayment plan ■ The Mortgage is subject to an approved short sale or deed-in-lieu of foreclosure ■ The Mortgage is currently subject to an unexpired offer to the Borrower for another modification or other foreclosure prevention alternative, such as a forbearance plan or repayment plan If the Servicer was not collecting Escrows on the existing Mortgage, the Borrower is not required to establish an Escrow account as a condition of the modification unless otherwise required by applicable law or the Servicer confirms that the taxes and insurance premiums have not been paid and are past due. (xi) Resolve To model the terms of the Disaster Payment Deferral and complete the settlement process, Servicers must use the “Payment Deferral” path in Resolve. Additionally, each Servicer shall comply with the requirements in Section 9203.4(e) to complete the submission and settlement process for a Disaster Payment Deferral. (xii) Reporting requirements In most cases, the Disaster Payment Deferral does not have an associated unique EDR status code. For each Mortgage subject to the Disaster Payment Deferral, the Servicer must continue reporting the appropriate delinquency status through the Loan Level Reporting tool in accordance with requirements in Section 8303.3(g) and default information to Freddie Mac through EDR in accordance with requirements in Section 9102.6. Once the Disaster Payment Deferral has been completed and the Mortgage is brought current, the Servicer must report the Mortgage as current through the Loan Level Reporting tool. Resolve automatically reports Status Code H6, Payment Deferral Offer, to EDR on the third Business Day of the following month in which the event occurred. Therefore, the Servicer is not required to report Status Code H6 in connection with a Payment Deferral. However, the Servicer is not prohibited from reporting and may report Status Code H6, Payment Deferral Offer, to notify Freddie Mac that the Mortgage is subject to an active Disaster Payment Deferral offer in the following instances: ■ The forbearance period ends prior to settlement of an accepted Disaster Payment Deferral (e.g., the Servicer elected to use a processing month and the forbearance plan expires), or ■ The Servicer has made a proactive offer following the expiration of a forbearance plan in accordance with the “Solicitation for a Disaster Payment Deferral” section above In these instances, if the Servicer has elected to report Status Code H6, it should continue to report the code until the offer has expired or the Payment Deferral has been completed. (xiii) Other requirements for the Disaster Payment Deferral (A) Delinquency status reporting The Disaster Payment Deferral does not have an associated unique EDR status code. For each Mortgage subject to the Disaster Payment Deferral, the Servicer must continue reporting the appropriate delinquency status information to Freddie Mac through the EDR tool in accordance with requirements in Section 9102.6 and Exhibit 88. After the Disaster Payment Deferral has been completed and the Mortgage is brought current, the EDR status code must reflect the Mortgage as current. If a Borrower redefaults and enters a new forbearance plan, the Servicer must report the new plan through the EDR tool in accordance with the requirements described above. (B) Request for reimbursement of expenses Servicers may use PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88) to request reimbursement for the following fees associated with the Disaster Payment Deferral: Reimbursement expense codes and limits Expense description Expense code Expense limit and notes Recordation fees 300003 Actual cost Title costs, if applicable 300004 Reimbursable amounts are in accordance with the limits specified in Exhibit 57A Notary fees 42001 $150 If the Servicer submits a reimbursement request for Disaster Payment Deferral expenses and the Disaster Payment Deferral settlement date does not exist in Freddie Mac’s systems, the expense reimbursement request will not be eligible for payment. All Disaster Payment Deferrals must have been submitted to Freddie Mac for settlement in its systems to be eligible for expense reimbursement. (C) Credit reporting For each Mortgage that is subject to the Disaster Payment Deferral, the Servicer must provide a “full file” status report describing the status of the Mortgage to each of the four major credit repositories in accordance with the credit bureau standards as provided by the Consumer Data Industry Association.

(D) Incentive payment The Servicer is eligible to receive a $500 incentive payment for each completed Disaster Payment Deferral.

(E) Servicing fee The Servicer will continue to receive the Servicing fee it was receiving prior to completing the Disaster Payment Deferral.

(F) Future Freddie Mac Flex Modification evaluations If the Servicer is evaluating a Borrower for a future Freddie Mac Flex Modification, the Disaster Payment Deferral will not count as a previous loan modification for purposes of calculating the number of times the Mortgage has previously been modified. (xiv) Future Payment Deferral evaluations If the Servicer is evaluating a Borrower for a future non-Disaster Payment Deferral in accordance with the requirements of Sections 9203.4(b) through 9203.4(h), the Disaster Payment Deferral will not cause the Borrower to be ineligible. (xv) Additional requirements for Mortgages with buydown funds The additional requirements for Mortgages with buydown funds are as follows: ■ When processing a Disaster Payment Deferral 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 deferred in accordance with the requirements of a Disaster Payment Deferral as specified in Section 9203.4(i)(i) unless it is required under the terms of the applicable buydown agreement ■ When evaluating a Borrower with a Mortgage with a temporary subsidy buydown plan for a Payment Deferral, the Servicer must confirm the Borrower’s financial capacity to continue making the existing contractual monthly Mortgage payment, including amounts due as a result of an Escrow shortage, as specified in Section 9203.4(i)(i) ■ Upon completion of the Disaster Payment Deferral, 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* ■ 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 ■ 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.

(H) Texas Equity Section 50(a)(6) Mortgages If the Borrower is eligible and qualifies for a Disaster Payment Deferral, the Servicer must offer the Disaster Payment Deferral to the Borrower. If the Servicer receives Borrower notification classifying the Disaster Payment Deferral as a loan modification and claiming that the terms of the modification agreement do not comply with the provisions of Article XVI Section 50(a)(6) of the Texas Constitution, the Servicer must notify Freddie Mac within seven Business Days of receipt of such objection or complaint via Freddie Mac Servicing Data Corrections and include the following: ■ Freddie Mac loan number ■ Servicer loan number ■ Transaction type (e.g., Texas Home Equity modification) ■ Accounting Cycle in which Freddie Mac settled the workout ■ Servicer’s analysis (e.g., Borrower complaint related to Section 50(a)(6) of the Texas Constitution) Upon receipt of Freddie Mac’s instructions, the Servicer must comply with any required response time frames to claims of defects and any other complaint in accordance with Section 8104.1(a) and the Texas Constitution. (ii) Determining Disaster Payment Deferral terms Based on the information provided by the Servicer, Resolve will determine the terms of the Disaster Payment Deferral as described in this Section 9203.4(i)(ii). If the existing Mortgage includes a non-interest bearing UPB as a result of a prior modification, the terms impacting that non-interest bearing UPB will remain unchanged. The Servicer must: ■ Apply the Payment Deferral forbearance as follows: Defer the delinquent principal and interest and any other expenses or amounts that are permitted to be capitalized under the Freddie Mac Flex Modification capitalization rules in Section 9206.3(b)(ii) into an existing or newly created non-interest bearing UPB (i.e., deferred UPB). The deferred UPB will become due on the earlier of: ❑ The Mortgage maturity date ❑ The Mortgage payoff date (e.g., refinance or payoff of the interest-bearing UPB), or ❑ The transfer or sale of the Mortgaged Premises ■ Advance the DDLPI to bring the Mortgage to current status ■ Ensure the remaining payment schedule associated with the interest-bearing UPB remains unchanged from the Mortgage’s pre-Disaster Payment Deferral payment schedule ■ Waive all accrued and unpaid late charges upon completion of the Payment Deferral When offering the Payment Deferral, the Servicer must ensure all other remaining terms of the existing Mortgage remain unchanged, including, but not limited to the: ■ Remaining amortization schedule ■ Monthly P&I portion of the existing contractual monthly Mortgage payment ■ Interest rate, including maintaining the existing rate adjustment schedule for an ARM or a Step-Rate Mortgage ■ Maturity date ■ Due Dates of the remaining payment due under the Mortgage Note: The maximum number of monthly payments that may be deferred as part of a Disaster Payment Deferral is 12. Prior to or during the Servicer’s determination of the Borrower’s eligibility for a Disaster Payment Deferral, the Servicer must analyze the Borrower’s Escrow to estimate if there is an Escrow shortage. If the Servicer completed an estimated analysis during evaluation, then upon completion of the Disaster Payment Deferral, the Servicer must perform a new Escrow analysis in accordance with the RESPA and any applicable federal, State or local law. If, as a result of the analysis, the Servicer determines that there is an Escrow shortage, the Servicer must disclose the amount of the shortage to the Borrower before the Borrower accepts the Disaster Payment Deferral. If the Borrower is unable to pay the Escrow shortage as a lump sum, then the Borrower must pay the shortage as part of the monthly PITI payment. If the Borrower must make monthly Escrow shortage payments, then the Servicer must: ■ Spread the repayment of the Escrow shortage amount in equal monthly payments over a period of 60 months, unless the Borrower chooses to pay off the shortage over a shorter period of time (not to be less than 12 months) ■ Take into account any remaining unpaid amount of the Escrow shortage in any subsequent Escrow analysis to ensure that the Borrower is able to continue to pay all Escrow shortage amounts over the remaining portion of either the current remaining Escrow shortage repayment period or a period up to 60 months. The Servicer may not accelerate or compress the remaining Escrow shortage amount into a new Escrow payment or shorter repayment period as a result of a future Escrow analysis. If the Borrower is unable to afford a Disaster Payment deferral based on the increased monthly payment resulting from an Escrow shortage repayment, the Servicer must evaluate the Borrower for a Freddie Mac Flex Modification. Any Escrow account shortage that is identified at the time of the Payment Deferral must not be capitalized, and the Servicer is not required to fund any existing Escrow account shortage. Any Escrow advances must be included in the deferred balance, as described in the “Delinquent Disaster Payment Deferral” section above. In addition, the Servicer is not required to revoke any Escrow account waiver. (iii)Completing a Disaster Payment Deferral The Servicer must send a Payment Deferral agreement (Exhibit 1100 or the Servicer’s customized equivalent of the Payment Deferral agreement) to the Borrower no later than five days after completion (e.g., a settled workout option) of the Payment Deferral. If the Servicer elects to require the Borrower to sign and return the Payment Deferral agreement, it must receive the fully executed Payment Deferral agreement prior to the settlement date. Use of the Payment Deferral agreement is optional. It reflects the minimum level of information that the Servicer must communicate to the Borrower, and it illustrates a level of specificity that is deemed to be in compliance with the requirements of the Guide. The Servicer must ensure the Payment Deferral agreement complies with applicable federal, State or local law. When processing a Payment Deferral agreement, the Servicer must also comply with the following requirements:

(A) Maintaining lien status The Servicer’s application of a Disaster Payment Deferral to the Mortgage must not impair Freddie Mac’s First Lien position or enforceability against the Borrower(s) in accordance with its terms.

(B) Title endorsement Title endorsement is not required.

(C) Document Custodian After the Servicer has sent the executed Payment Deferral agreement to the Borrower as required in this section: ■ If the Payment Deferral agreement is not required to be signed by the Borrower, the Servicer must send a copy of the Servicer-executed Payment Deferral agreement to the Document Custodian within 25 days of the effective date of the Payment Deferral completion ■ If the Payment Deferral agreement is to be recorded, the Servicer must: • Send a certified copy of the fully executed Payment Deferral agreement to the Document Custodian within 25 days of the effective date of the Payment Deferral, and • Send the original Payment Deferral agreement that is returned from the recorder’s office to the Document Custodian within five Business Days of receipt ■ If the Payment Deferral agreement must be signed by the Borrower but not recorded, the Servicer must send the fully executed original Payment Deferral agreement to the Document Custodian within 25 days of the effective date of the Disaster Payment Deferral (iv) Processing month The Servicer must complete the Disaster Payment Deferral in the same month it determines the Borrower is eligible. If the Servicer is unable to complete the Disaster Payment Deferral before the 15th day of the evaluation month, then the Servicer is authorized to use an additional month to allow for sufficient processing time (a “processing month”) to complete the Disaster Payment Deferral. The Servicer must treat all Borrowers equally in applying the processing month, as evidenced by a written policy (i.e., the criteria for requiring a processing month must be the same for all Borrowers). The Borrower must make a complete monthly contractual payment during the processing month if, as of the date of evaluation, the Mortgage is 360 days delinquent or more. In this circumstance, the Servicer must complete the Disaster Payment Deferral within the processing month after the 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 become 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. (v) Disaster Payment Deferral agreement The Servicer must process a Disaster Payment Deferral agreement in compliance with the requirements for processing a regular Payment Deferral agreement, as described in Section 9203.4(f). (vi) Evaluation hierarchy To be eligible for a Disaster Payment Deferral, a Borrower must have been current or less than 60 days delinquent (i.e., less than two months delinquent) as of the date of the Eligible Disaster. Otherwise, the Servicer must conduct all loss mitigation evaluations in accordance with Freddie Mac’s standard loss mitigation evaluation hierarchy, as described in Section 9201.2, or must submit an exception request for Freddie Mac approval. If quality right party contact is established with a Borrower who was current or less than 60 days delinquent (i.e., less than two months delinquent) as of the date of the Eligible Disaster and the Borrower is unable to resolve the Delinquency through a reinstatement or repayment plan, the Servicer must evaluate the Borrower for the loss mitigation options in the following Disaster evaluation hierarchy: 1. Disaster Payment Deferral 2. Freddie Mac Flex Modification 3. Standard Short Sale 4. Standard Deed-in-Lieu of Foreclosure Note: In most cases, Borrowers impacted by an Eligible Disaster who qualify to be evaluated for a Disaster Payment Deferral will be transitioning from a forbearance plan, but forbearance is not a prerequisite. (vii) Post-forbearance plan – solicitation for a Disaster Payment Deferral In order to promote a more seamless transition between loss mitigation options when a Borrower who was on a disaster-related forbearance completes the forbearance plan without a solution to the delinquency, the table below provides requirements for Servicers to conduct reviews for proactive Disaster Payment Deferral and Freddie Mac Flex Modification offers: Post forbearance plan – Disaster 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 postforbearance solution to the delinquency. The Servicer must evaluate the Borrower for a proactive offer for a Disaster Payment Deferral in accordance with the eligibility criteria described below. If eligible, the Servicer must send the Borrower a proactive offer for a Disaster Payment Deferral by the 15th day following expiration of the forbearance plan. Eligibility The Borrower must be eligible for a Disaster Payment Deferral in accordance with the requirements of this chapter, except: ■ The Servicer is not required to have established quality right party contact, as described in Section 9203.4(i), and ■ The Servicer is not required to confirm that the Borrower meets the Borrower eligibility requirements described in Section 9203.4(i)(i) Solicitation requirements The Servicer must solicit the Borrower using Exhibit 1102, Payment Deferral PostForbearance Solicitation Cover Letter, with Exhibit 1100, 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 processing month if, as of the date of evaluation, the Mortgage is 12 months delinquent. In this circumstance, the Servicer must complete the Disaster Payment Deferral within the month of solicitation after receipt of the Borrower’s full contractual payment due during that month. 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(s) during the processing month if the Mortgage is 360 days delinquent or more. The Servicer must complete the Payment Deferral within the processing month after receipt of the Borrower’s full monthly contractual payment during that month. When processing these evaluations using Resolve, the Borrower is ineligible for a Payment Deferral until their payment is received. 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 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 Borrower is ineligible for a proactive offer for a Disaster 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 month following the expiration of the forbearance plan. ■ The Borrower’s 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 Disaster 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)(v). Solicitation The Servicer must send the Borrower Exhibit 1191A, Freddie Mac Post-Disaster Forbearance 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 1191A 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. (viii) Failed repayment plan - solicitation for a Disaster Payment Deferral 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 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. The Servicer must evaluate the Borrower for a proactive offer for a Disaster 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 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(i), and ■ The Servicer is not required to confirm that the Borrower meets the Borrower eligibility requirements described in Section 9203.4(i)(i) Solicitation requirements The Servicer must solicit the Borrower using Exhibit 1105, Payment Deferral PostRepayment Plan Solicitation Cover Letter, with Exhibit 1100 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 12 months delinquent. In this circumstance, the Servicer must complete the Disaster Payment Deferral within the month of solicitation after receipt of the Borrower’s full contractual payment due during that month. Note: If the Servicer uses a processing month to complete the Disaster Payment Deferral, the Borrower must also make his or her full monthly contractual payment(s) during the processing month if the Mortgage is 360 days delinquent or more. The Servicer must complete the Payment Deferral within the processing month after receipt of the Borrower’s full monthly contractual payment during that month. In these instances, when processing these evaluations using Resolve, the Borrower is ineligible for a Payment Deferral until their payment is received. 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 complete the Payment Deferral. Once the payment or payments have been received and the Mortgage becomes eligible, the Servicer can proceed to settlement. Failed repayment plan – Freddie Mac Flex Modification If… Then… ■ The Borrower fails a repayment plan, and 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 has not established quality right party contact, and ■ The Borrower is ineligible for a proactive offer for a Disaster Payment Deferral 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 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 Disaster 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)(v). 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. (ix) Failed Disaster Payment Deferral – solicitations In order to promote a more seamless transition between loss mitigation options when a Borrower who accepted a Disaster Payment Deferral and is unable to remain current, the table below provides requirements for Servicers to conduct reviews for proactive Freddie Mac Flex Modification offers following an unsuccessful Disaster Payment Deferral. Failed Payment Deferral – Freddie Mac Flex Modification If… Then… The Borrower has accepted a Disaster Payment Deferral and: The Servicer must evaluate the Borrower for a proactive offer for a Freddie Mac Flex ■ 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 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 75th day of delinquency. 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)(v). 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 or 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. (x) Reduced Freddie Mac Flex Modification requirements In lieu of the Guide requirements for Freddie Mac Flex Modification eligibility in Sections 9206.1(c) and 9206.1(d), Mortgages will be excluded from eligibility only under the following circumstances: ■ The Mortgage is an FHA, VA or Guaranteed Rural Housing Mortgage ■ The Mortgage is subject to recourse ■ The Borrower is currently performing under another forbearance plan, Trial Period Plan or repayment plan ■ The Mortgage is subject to an approved short sale or deed-in-lieu of foreclosure ■ The Mortgage is currently subject to an unexpired offer to the Borrower for another modification or other foreclosure prevention alternative, such as a forbearance plan or repayment plan If the Servicer was not collecting Escrows on the existing Mortgage, the Borrower is not required to establish an Escrow account as a condition of the modification unless otherwise required by applicable law or the Servicer confirms that the taxes and insurance premiums have not been paid and are past due. (xi) Resolve To model the terms of the Disaster Payment Deferral and complete the settlement process, Servicers must use the “Payment Deferral” path in Resolve. Additionally, each Servicer shall comply with the requirements in Section 9203.4(e) to complete the submission and settlement process for a Disaster Payment Deferral. (xii) Reporting requirements In most cases, the Disaster Payment Deferral does not have an associated unique EDR status code. For each Mortgage subject to the Disaster Payment Deferral, the Servicer must continue reporting the appropriate delinquency status through the Loan Level Reporting tool in accordance with requirements in Section 8303.3(g) and default information to Freddie Mac through EDR in accordance with requirements in Section 9102.6. Once the Disaster Payment Deferral has been completed and the Mortgage is brought current, the Servicer must report the Mortgage as current through the Loan Level Reporting tool. Resolve automatically reports Status Code H6, Payment Deferral Offer, to EDR on the third Business Day of the following month in which the event occurred. Therefore, the Servicer is not required to report Status Code H6 in connection with a Payment Deferral. However, the Servicer is not prohibited from reporting and may report Status Code H6, Payment Deferral Offer, to notify Freddie Mac that the Mortgage is subject to an active Disaster Payment Deferral offer in the following instances: ■ The forbearance period ends prior to settlement of an accepted Disaster Payment Deferral (e.g., the Servicer elected to use a processing month and the forbearance plan expires), or ■ The Servicer has made a proactive offer following the expiration of a forbearance plan in accordance with the “Solicitation for a Disaster Payment Deferral” section above In these instances, if the Servicer has elected to report Status Code H6, it should continue to report the code until the offer has expired or the Payment Deferral has been completed. (xiii) Other requirements for the Disaster Payment Deferral (A) Delinquency status reporting The Disaster Payment Deferral does not have an associated unique EDR status code. For each Mortgage subject to the Disaster Payment Deferral, the Servicer must continue reporting the appropriate delinquency status information to Freddie Mac through the EDR tool in accordance with requirements in Section 9102.6 and Exhibit 88. After the Disaster Payment Deferral has been completed and the Mortgage is brought current, the EDR status code must reflect the Mortgage as current. If a Borrower redefaults and enters a new forbearance plan, the Servicer must report the new plan through the EDR tool in accordance with the requirements described above. (B) Request for reimbursement of expenses Servicers may use PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88) to request reimbursement for the following fees associated with the Disaster Payment Deferral: Reimbursement expense codes and limits Expense description Expense code Expense limit and notes Recordation fees 300003 Actual cost Title costs, if applicable 300004 Reimbursable amounts are in accordance with the limits specified in Exhibit 57A Notary fees 42001 $150 If the Servicer submits a reimbursement request for Disaster Payment Deferral expenses and the Disaster Payment Deferral settlement date does not exist in Freddie Mac’s systems, the expense reimbursement request will not be eligible for payment. All Disaster Payment Deferrals must have been submitted to Freddie Mac for settlement in its systems to be eligible for expense reimbursement. (C) Credit reporting For each Mortgage that is subject to the Disaster Payment Deferral, the Servicer must provide a “full file” status report describing the status of the Mortgage to each of the four major credit repositories in accordance with the credit bureau standards as provided by the Consumer Data Industry Association.

(D) Incentive payment The Servicer is eligible to receive a $500 incentive payment for each completed Disaster Payment Deferral.

(E) Servicing fee The Servicer will continue to receive the Servicing fee it was receiving prior to completing the Disaster Payment Deferral.

(F) Future Freddie Mac Flex Modification evaluations If the Servicer is evaluating a Borrower for a future Freddie Mac Flex Modification, the Disaster Payment Deferral will not count as a previous loan modification for purposes of calculating the number of times the Mortgage has previously been modified. (xiv) Future Payment Deferral evaluations If the Servicer is evaluating a Borrower for a future non-Disaster Payment Deferral in accordance with the requirements of Sections 9203.4(b) through 9203.4(h), the Disaster Payment Deferral will not cause the Borrower to be ineligible. (xv) Additional requirements for Mortgages with buydown funds The additional requirements for Mortgages with buydown funds are as follows: ■ When processing a Disaster Payment Deferral 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 deferred in accordance with the requirements of a Disaster Payment Deferral as specified in Section 9203.4(i)(i) unless it is required under the terms of the applicable buydown agreement ■ When evaluating a Borrower with a Mortgage with a temporary subsidy buydown plan for a Payment Deferral, the Servicer must confirm the Borrower’s financial capacity to continue making the existing contractual monthly Mortgage payment, including amounts due as a result of an Escrow shortage, as specified in Section 9203.4(i)(i) ■ Upon completion of the Disaster Payment Deferral, 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* ■ 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 ■ 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.

(H) Texas Equity Section 50(a)(6) Mortgages If the Borrower is eligible and qualifies for a Disaster Payment Deferral, the Servicer must offer the Disaster Payment Deferral to the Borrower. If the Servicer receives Borrower notification classifying the Disaster Payment Deferral as a loan modification and claiming that the terms of the modification agreement do not comply with the provisions of Article XVI Section 50(a)(6) of the Texas Constitution, the Servicer must notify Freddie Mac within seven Business Days of receipt of such objection or complaint via Freddie Mac Servicing Data Corrections and include the following: ■ Freddie Mac loan number ■ Servicer loan number ■ Transaction type (e.g., Texas Home Equity modification) ■ Accounting Cycle in which Freddie Mac settled the workout ■ Servicer’s analysis (e.g., Borrower complaint related to Section 50(a)(6) of the Texas Constitution) Upon receipt of Freddie Mac’s instructions, the Servicer must comply with any required response time frames to claims of defects and any other complaint in accordance with Section 8104.1(a) and the Texas Constitution. (ii) Determining Disaster Payment Deferral terms Based on the information provided by the Servicer, Resolve will determine the terms of the Disaster Payment Deferral as described in this Section 9203.4(i)(ii). If the existing Mortgage includes a non-interest bearing UPB as a result of a prior modification, the terms impacting that non-interest bearing UPB will remain unchanged. The Servicer must: ■ Apply the Payment Deferral forbearance as follows: Defer the delinquent principal and interest and any other expenses or amounts that are permitted to be capitalized under the Freddie Mac Flex Modification capitalization rules in Section 9206.3(b)(ii) into an existing or newly created non-interest bearing UPB (i.e., deferred UPB). The deferred UPB will become due on the earlier of: ❑ The Mortgage maturity date ❑ The Mortgage payoff date (e.g., refinance or payoff of the interest-bearing UPB), or ❑ The transfer or sale of the Mortgaged Premises ■ Advance the DDLPI to bring the Mortgage to current status ■ Ensure the remaining payment schedule associated with the interest-bearing UPB remains unchanged from the Mortgage’s pre-Disaster Payment Deferral payment schedule ■ Waive all accrued and unpaid late charges upon completion of the Payment Deferral When offering the Payment Deferral, the Servicer must ensure all other remaining terms of the existing Mortgage remain unchanged, including, but not limited to the: ■ Remaining amortization schedule ■ Monthly P&I portion of the existing contractual monthly Mortgage payment ■ Interest rate, including maintaining the existing rate adjustment schedule for an ARM or a Step-Rate Mortgage ■ Maturity date ■ Due Dates of the remaining payment due under the Mortgage Note: The maximum number of monthly payments that may be deferred as part of a Disaster Payment Deferral is 12. Prior to or during the Servicer’s determination of the Borrower’s eligibility for a Disaster Payment Deferral, the Servicer must analyze the Borrower’s Escrow to estimate if there is an Escrow shortage. If the Servicer completed an estimated analysis during evaluation, then upon completion of the Disaster Payment Deferral, the Servicer must perform a new Escrow analysis in accordance with the RESPA and any applicable federal, State or local law. If, as a result of the analysis, the Servicer determines that there is an Escrow shortage, the Servicer must disclose the amount of the shortage to the Borrower before the Borrower accepts the Disaster Payment Deferral. If the Borrower is unable to pay the Escrow shortage as a lump sum, then the Borrower must pay the shortage as part of the monthly PITI payment. If the Borrower must make monthly Escrow shortage payments, then the Servicer must: ■ Spread the repayment of the Escrow shortage amount in equal monthly payments over a period of 60 months, unless the Borrower chooses to pay off the shortage over a shorter period of time (not to be less than 12 months) ■ Take into account any remaining unpaid amount of the Escrow shortage in any subsequent Escrow analysis to ensure that the Borrower is able to continue to pay all Escrow shortage amounts over the remaining portion of either the current remaining Escrow shortage repayment period or a period up to 60 months. The Servicer may not accelerate or compress the remaining Escrow shortage amount into a new Escrow payment or shorter repayment period as a result of a future Escrow analysis. If the Borrower is unable to afford a Disaster Payment deferral based on the increased monthly payment resulting from an Escrow shortage repayment, the Servicer must evaluate the Borrower for a Freddie Mac Flex Modification. Any Escrow account shortage that is identified at the time of the Payment Deferral must not be capitalized, and the Servicer is not required to fund any existing Escrow account shortage. Any Escrow advances must be included in the deferred balance, as described in the “Delinquent Disaster Payment Deferral” section above. In addition, the Servicer is not required to revoke any Escrow account waiver. (iii)Completing a Disaster Payment Deferral The Servicer must send a Payment Deferral agreement (Exhibit 1100 or the Servicer’s customized equivalent of the Payment Deferral agreement) to the Borrower no later than five days after completion (e.g., a settled workout option) of the Payment Deferral. If the Servicer elects to require the Borrower to sign and return the Payment Deferral agreement, it must receive the fully executed Payment Deferral agreement prior to the settlement date. Use of the Payment Deferral agreement is optional. It reflects the minimum level of information that the Servicer must communicate to the Borrower, and it illustrates a level of specificity that is deemed to be in compliance with the requirements of the Guide. The Servicer must ensure the Payment Deferral agreement complies with applicable federal, State or local law. When processing a Payment Deferral agreement, the Servicer must also comply with the following requirements:

(A) Maintaining lien status The Servicer’s application of a Disaster Payment Deferral to the Mortgage must not impair Freddie Mac’s First Lien position or enforceability against the Borrower(s) in accordance with its terms.

(B) Title endorsement Title endorsement is not required.

(C) Document Custodian After the Servicer has sent the executed Payment Deferral agreement to the Borrower as required in this section: ■ If the Payment Deferral agreement is not required to be signed by the Borrower, the Servicer must send a copy of the Servicer-executed Payment Deferral agreement to the Document Custodian within 25 days of the effective date of the Payment Deferral completion ■ If the Payment Deferral agreement is to be recorded, the Servicer must: • Send a certified copy of the fully executed Payment Deferral agreement to the Document Custodian within 25 days of the effective date of the Payment Deferral, and • Send the original Payment Deferral agreement that is returned from the recorder’s office to the Document Custodian within five Business Days of receipt ■ If the Payment Deferral agreement must be signed by the Borrower but not recorded, the Servicer must send the fully executed original Payment Deferral agreement to the Document Custodian within 25 days of the effective date of the Disaster Payment Deferral (iv) Processing month The Servicer must complete the Disaster Payment Deferral in the same month it determines the Borrower is eligible. If the Servicer is unable to complete the Disaster Payment Deferral before the 15th day of the evaluation month, then the Servicer is authorized to use an additional month to allow for sufficient processing time (a “processing month”) to complete the Disaster Payment Deferral. The Servicer must treat all Borrowers equally in applying the processing month, as evidenced by a written policy (i.e., the criteria for requiring a processing month must be the same for all Borrowers). The Borrower must make a complete monthly contractual payment during the processing month if, as of the date of evaluation, the Mortgage is 360 days delinquent or more. In this circumstance, the Servicer must complete the Disaster Payment Deferral within the processing month after the 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 become 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. (v) Disaster Payment Deferral agreement The Servicer must process a Disaster Payment Deferral agreement in compliance with the requirements for processing a regular Payment Deferral agreement, as described in Section 9203.4(f). (vi) Evaluation hierarchy To be eligible for a Disaster Payment Deferral, a Borrower must have been current or less than 60 days delinquent (i.e., less than two months delinquent) as of the date of the Eligible Disaster. Otherwise, the Servicer must conduct all loss mitigation evaluations in accordance with Freddie Mac’s standard loss mitigation evaluation hierarchy, as described in Section 9201.2, or must submit an exception request for Freddie Mac approval. If quality right party contact is established with a Borrower who was current or less than 60 days delinquent (i.e., less than two months delinquent) as of the date of the Eligible Disaster and the Borrower is unable to resolve the Delinquency through a reinstatement or repayment plan, the Servicer must evaluate the Borrower for the loss mitigation options in the following Disaster evaluation hierarchy: 1. Disaster Payment Deferral 2. Freddie Mac Flex Modification 3. Standard Short Sale 4. Standard Deed-in-Lieu of Foreclosure Note: In most cases, Borrowers impacted by an Eligible Disaster who qualify to be evaluated for a Disaster Payment Deferral will be transitioning from a forbearance plan, but forbearance is not a prerequisite. (vii) Post-forbearance plan – solicitation for a Disaster Payment Deferral In order to promote a more seamless transition between loss mitigation options when a Borrower who was on a disaster-related forbearance completes the forbearance plan without a solution to the delinquency, the table below provides requirements for Servicers to conduct reviews for proactive Disaster Payment Deferral and Freddie Mac Flex Modification offers: Post forbearance plan – Disaster Payment Deferral If…. Then… The Borrower’s forbearance plan ends and the Servicer is unable to establish quality The Servicer must evaluate the Borrower for a proactive offer for a Disaster Payment Deferral in accordance with the eligibility right party contact to evaluate for a postforbearance solution to the delinquency. criteria described below. If eligible, the Servicer must send the Borrower a proactive offer for a Disaster Payment Deferral by the 15th day following expiration of the forbearance plan. Eligibility The Borrower must be eligible for a Disaster Payment Deferral in accordance with the requirements of this chapter, except: ■ The Servicer is not required to have established quality right party contact, as described in Section 9203.4(i), and ■ The Servicer is not required to confirm that the Borrower meets the Borrower eligibility requirements described in Section 9203.4(i)(i) Solicitation requirements The Servicer must solicit the Borrower using Exhibit 1102, Payment Deferral PostForbearance Solicitation Cover Letter, with Exhibit 1100, 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 processing month if, as of the date of evaluation, the Mortgage is 12 months delinquent. In this circumstance, the Servicer must complete the Disaster Payment Deferral within the month of solicitation after receipt of the Borrower’s full contractual payment due during that month. 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(s) during the processing month if the Mortgage is 360 days delinquent or more. The Servicer must complete the Payment Deferral within the processing month after receipt of the Borrower’s full monthly contractual payment during that month. When processing these evaluations using Resolve, the Borrower is ineligible for a Payment Deferral until their payment is received. 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 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 Borrower is ineligible for a proactive offer for a Disaster 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 month following the expiration of the forbearance plan. ■ The Borrower’s 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 Disaster 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)(v). Solicitation The Servicer must send the Borrower Exhibit 1191A, Freddie Mac Post-Disaster Forbearance 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 1191A 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. (viii) Failed repayment plan - solicitation for a Disaster Payment Deferral 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 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. The Servicer must evaluate the Borrower for a proactive offer for a Disaster 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 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(i), and ■ The Servicer is not required to confirm that the Borrower meets the Borrower eligibility requirements described in Section 9203.4(i)(i) Solicitation requirements The Servicer must solicit the Borrower using Exhibit 1105, Payment Deferral PostRepayment Plan Solicitation Cover Letter, with Exhibit 1100 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 12 months delinquent. In this circumstance, the Servicer must complete the Disaster Payment Deferral within the month of solicitation after receipt of the Borrower’s full contractual payment due during that month. Note: If the Servicer uses a processing month to complete the Disaster Payment Deferral, the Borrower must also make his or her full monthly contractual payment(s) during the processing month if the Mortgage is 360 days delinquent or more. The Servicer must complete the Payment Deferral within the processing month after receipt of the Borrower’s full monthly contractual payment during that month. In these instances, when processing these evaluations using Resolve, the Borrower is ineligible for a Payment Deferral until their payment is received. 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 complete the Payment Deferral. Once the payment or payments have been received and the Mortgage becomes eligible, the Servicer can proceed to settlement. 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 Disaster 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 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 Disaster Payment Deferral but did not 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. accept the offer by the acceptance date provided in the Payment Deferral agreement 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)(v). 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. (ix) Failed Disaster Payment Deferral – solicitations In order to promote a more seamless transition between loss mitigation options when a Borrower who accepted a Disaster Payment Deferral and is unable to remain current, the table below provides requirements for Servicers to conduct reviews for proactive Freddie Mac Flex Modification offers following an unsuccessful Disaster Payment Deferral. Failed Payment Deferral – Freddie Mac Flex Modification If… Then… The Borrower has accepted a Disaster 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 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 75th day of delinquency. 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)(v). 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 or 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. (x) Reduced Freddie Mac Flex Modification requirements In lieu of the Guide requirements for Freddie Mac Flex Modification eligibility in Sections 9206.1(c) and 9206.1(d), Mortgages will be excluded from eligibility only under the following circumstances: ■ The Mortgage is an FHA, VA or Guaranteed Rural Housing Mortgage ■ The Mortgage is subject to recourse ■ The Borrower is currently performing under another forbearance plan, Trial Period Plan or repayment plan ■ The Mortgage is subject to an approved short sale or deed-in-lieu of foreclosure ■ The Mortgage is currently subject to an unexpired offer to the Borrower for another modification or other foreclosure prevention alternative, such as a forbearance plan or repayment plan If the Servicer was not collecting Escrows on the existing Mortgage, the Borrower is not required to establish an Escrow account as a condition of the modification unless otherwise required by applicable law or the Servicer confirms that the taxes and insurance premiums have not been paid and are past due. (xi) Resolve To model the terms of the Disaster Payment Deferral and complete the settlement process, Servicers must use the “Payment Deferral” path in Resolve. Additionally, each Servicer shall comply with the requirements in Section 9203.4(e) to complete the submission and settlement process for a Disaster Payment Deferral. (xii) Reporting requirements For each Mortgage subject to the Disaster Payment Deferral, the Servicer must continue reporting the appropriate delinquency status through the Loan Level Reporting tool in accordance with requirements in Section 8303.3(g) and applicable default related reporting events in accordance with the requirements in Section 9102.6 and Exhibit 82. Once the Disaster Payment Deferral has been completed and the Mortgage is brought current, the Servicer must report the Mortgage as current through the Loan Level Reporting tool. If a Borrower redefaults and enters a new forbearance plan, the Servicer must report the new plan in Resolve in accordance with the requirements in Section 9203.3. (xiii) Other requirements for the Disaster Payment Deferral (A) Request for reimbursement of expenses Servicers may use PAID (Payments Automated Intelligent and Dynamic) (see Exhibit 88) to request reimbursement for the following fees associated with the Disaster Payment Deferral: Reimbursement expense codes and limits Expense description Expense code Expense limit and notes Recordation fees 300003 Actual cost Title costs, if applicable 300004 Reimbursable amounts are in accordance with the limits specified in Exhibit 57A Notary fees 42001 $150 If the Servicer submits a reimbursement request for Disaster Payment Deferral expenses and the Disaster Payment Deferral settlement date does not exist in Freddie Mac’s systems, the expense reimbursement request will not be eligible for payment. All Disaster Payment Deferrals must have been submitted to Freddie Mac for settlement in its systems to be eligible for expense reimbursement. (B) Credit reporting For each Mortgage that is subject to the Disaster Payment Deferral, the Servicer must provide a “full file” status report describing the status of the Mortgage to each of the four major credit repositories in accordance with the credit bureau standards as provided by the Consumer Data Industry Association. (C) Incentive payment The Servicer is eligible to receive a $500 incentive payment for each completed Disaster Payment Deferral.

(D) Servicing fee The Servicer will continue to receive the Servicing fee it was receiving prior to completing the Disaster Payment Deferral.

(E) Future Freddie Mac Flex Modification evaluations If the Servicer is evaluating a Borrower for a future Freddie Mac Flex Modification, the Disaster Payment Deferral will not count as a previous loan modification for purposes of calculating the number of times the Mortgage has previously been modified. (xiv) Future Payment Deferral evaluations If the Servicer is evaluating a Borrower for a future non-Disaster Payment Deferral in accordance with the requirements of Sections 9203.4(b) through 9203.4(h), the Disaster Payment Deferral will not cause the Borrower to be ineligible. (xv) Additional requirements for Mortgages with buydown funds The additional requirements for Mortgages with buydown funds are as follows: ■ When processing a Disaster Payment Deferral 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 deferred in accordance with the requirements of a Disaster Payment Deferral as specified in Section 9203.4(i)(i) unless it is required under the terms of the applicable buydown agreement ■ When evaluating a Borrower with a Mortgage with a temporary subsidy buydown plan for a Payment Deferral, the Servicer must confirm the Borrower’s financial capacity to continue making the existing contractual monthly Mortgage payment, including amounts due as a result of an Escrow shortage, as specified in Section 9203.4(i)(i) ■ Upon completion of the Disaster Payment Deferral, 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* ■ 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 ■ 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.