Freddie Mac Single-Family Seller/Servicer Guide 9204.3 — Servicer compensation, fees and mortgage insurance considerations
Freddie Mac Single-Family Seller/Servicer Guide section 9204.3 — Servicer compensation, fees and mortgage insurance considerations. Full verbatim section text, substring-verified against snapshot 5869ee9e606cd4ae.
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Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide 9204.3 — Servicer compensation, fees and mortgage insurance considerations — 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 Single-Family Seller/Servicer Guide 9204.3 — Servicer compensation, fees and mortgage insurance considerations (part 1 of 4)
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 requirements related to: ■ Servicer compensation for alternatives to foreclosure ■ Prohibition of certain Borrower fees; non-refusal of workout options due to late charges ■ Mortgage insurance claims (a) Servicer compensation for alternatives to foreclosure Servicers are eligible to receive compensation for completing certain alternatives to foreclosure. These amounts are incentives and are not considered to be base Servicing compensation. Freddie Mac may change these incentive payments at any time. (i) Compensation for settled workouts and successful repayment plans For eligible settled workouts and successful repayment plans, the Servicer will be compensated as specified in the table below: Compensation for eligible settled workouts and successful repayment plans Workout/ Relief type Incentive amount Comments Repayment plan $500 To qualify for the repayment plan incentive, the following conditions must be met: 1. The Mortgage was 60 or more days delinquent at the time the Borrower entered into the repayment plan 2. The Borrower completely reinstated or paid off the Mortgage 3. The Servicer reported the repayment plan to Freddie Mac via EDR as specified in Section 9203.2(d). Payment Deferral (all types) $500 Freddie Mac Flex Modification® $1,000 Servicer incentives are capped at a total of $1,000 per Mortgage for all repayment plans, Payment Deferrals and Freddie Mac Flex Modifications. Workout and relief options completed or begun prior to July 1, 2020 are not subject to the incentive cap. Freddie Mac Standard Short Sale $2,200 and Make-Whole Preforeclosure Sales Freddie Mac Standard Deed-inLieu of Foreclosure (“DIL”) $1,500 Servicers should direct questions regarding the status of workout incentives to [email protected]. The Servicer is not eligible to receive compensation if: ■ The Mortgage was sold to Freddie Mac with recourse ■ The Mortgage is insured by the FHA ■ The Mortgage is guaranteed by the VA or RHS ■ The Mortgage is subject to indemnification (ii) Paying compensation Servicers must elect to receive these funds via the Automated Clearing House (ACH) by following the steps outlined in Form 1132, Authorization for Automatic Transfer of Funds Through the Automated Clearing House (ACH) For Sellers/Servicers. (See Section 2405.1(a) for delivery instructions for Form 1132.) Freddie Mac will track all workouts a Servicer settles on a daily basis. Freddie Mac will also send the loan detail for all of the eligible workouts the Servicer settled and successful repayment plans that occurred during the period for which the Servicer is being compensated. Freddie Mac considers a workout settled when Freddie Mac has received and successfully processed the documentation and received the remittance and transmission(s) specified in the table below. Documentation and transmission requirements to receive workout incentives Documentation/transmission Mortgage modification Payment Deferral Short Sale Payoff Deed-inLieu of Foreclosure Completion and transmission of loan modification settlement data or Payment Deferral settlement data in Resolve® Required Required Mortgage paid in full-prepaid. (Note: Servicers should remit only the net proceeds due to Freddie Mac for a short sale payoff.) Required Completion and transmission of short sale settlement data in Resolve Required The original negotiated promissory note(s), if applicable Required Required Borrower cash contribution, if applicable Required Required Foreclosure sale/DIL to report the acquisition of the property and loan-level transaction to report Mortgage as a transfer to REO Required Freddie Mac will determine if a Servicer is entitled to compensation for a successful repayment plan of a Mortgage that was 60 or more days delinquent based on the information the Servicer transmits to Freddie Mac via EDR and the Servicer’s monthly loan-level reporting. The Servicer must have: 1. Informed Freddie Mac that the Borrower has entered into a repayment plan (default action code 12) 2. Notified Freddie Mac that the Mortgage is current or is paid in full (b) Prohibition of certain Borrower fees; non-refusal of workout options due to late charges The Servicer may not charge any additional fees to the Borrower other than those provided for in Freddie Mac’s relief and workout options. The Servicer may not refuse to consider a workout option or require payment of accrued late charges as a condition of doing a workout. (c) Mortgage insurance claims Freddie Mac will file a claim for loss with the MI if the Mortgage is covered by mortgage insurance, and Freddie Mac will manage the claims payment process with the MI. The Servicer must provide all information and documentation pertaining to the claim to the MI no later than 60 days after the foreclosure sale, short sale or acceptance of a deed-in-lieu of foreclosure, or within any shorter time frame as specified by the mortgage insurance master policy or by Freddie Mac. If the MI reduces, suspends or denies the claim due to the Servicer’s actions or inactions, including, but not limited to, failure to comply with the Guide or applicable mortgage insurance requirements, then Freddie Mac may exercise its remedies provided by the Guide and the other Purchase Documents for the amount that is reduced, suspended or denied. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies.
Freddie Mac Single-Family Seller/Servicer Guide 9204.3 — Servicer compensation, fees and mortgage insurance considerations (part 2 of 4)
10/01/26) This section contains requirements related to: ■ Servicer compensation for alternatives to foreclosure ■ Prohibition of certain Borrower fees; non-refusal of workout options due to late charges ■ Mortgage insurance claims (a) Servicer compensation for alternatives to foreclosure Servicers are eligible to receive compensation for completing certain alternatives to foreclosure. These amounts are incentives and are not considered to be base Servicing compensation. Freddie Mac may change these incentive payments at any time. (i) Compensation for settled workouts and successful repayment plans For eligible settled workouts and successful repayment plans, the Servicer will be compensated as specified in the table below: Compensation for eligible settled workouts and successful repayment plans Workout/ Relief type Incentive amount Comments Repayment plan $500 To qualify for the repayment plan incentive, the following conditions must be met: 1. The Mortgage was 60 or more days delinquent at the time the Borrower entered into the repayment plan 2. The Borrower completely reinstated or paid off the Mortgage 3. The Servicer reported the repayment plan to Freddie Mac via Resolve® as specified in Section 9203.2(d). Payment Deferral (all types) $500 Freddie Mac Flex Modification® $1,000 Servicer incentives are capped at a total of $1,000 per Mortgage for all repayment plans, Payment Deferrals and Freddie Mac Flex Modifications. Workout and relief options completed or begun prior to July 1, 2020 are not subject to the incentive cap. Freddie Mac Standard Short Sale and Make-Whole Preforeclosure Sales $2,200 Freddie Mac Standard Deed-in- $1,500 Lieu of Foreclosure (“DIL”) Servicers should direct questions regarding the status of workout incentives to [email protected]. The Servicer is not eligible to receive compensation if: ■ The Mortgage was sold to Freddie Mac with recourse ■ The Mortgage is insured by the FHA ■ The Mortgage is guaranteed by the VA or RHS ■ The Mortgage is subject to indemnification (ii) Paying compensation Servicers must elect to receive these funds via the Automated Clearing House (ACH) by following the steps outlined in Form 1132, Authorization for Automatic Transfer of Funds Through the Automated Clearing House (ACH) For Sellers/Servicers. (See Section 2405.1(a) for delivery instructions for Form 1132.) Freddie Mac will track all workouts a Servicer settles on a daily basis. Freddie Mac will also send the loan detail for all of the eligible workouts the Servicer settled and successful repayment plans that occurred during the period for which the Servicer is being compensated. Freddie Mac considers a workout settled when Freddie Mac has received and successfully processed the documentation and received the remittance and transmission(s) specified in the table below. Documentation and transmission requirements to receive workout incentives Documentation/transmission Mortgage modification Payment Deferral Short Sale Payoff Deed-inLieu of Foreclosure Completion and transmission of loan modification settlement data or Payment Deferral settlement data in Resolve Required Required Mortgage paid in full-prepaid. (Note: Servicers should remit Required Documentation and transmission requirements to receive workout incentives Documentation/transmission Mortgage modification Payment Deferral Short Sale Payoff Deed-inLieu of Foreclosure only the net proceeds due to Freddie Mac for a short sale payoff.) Completion and transmission of short sale settlement data in Resolve Required The original negotiated promissory note(s), if applicable Required Required Borrower cash contribution, if applicable Required Required Foreclosure sale/DIL to report the acquisition of the property and loan-level transaction to report Mortgage as a transfer to REO Required Freddie Mac will determine if a Servicer is entitled to compensation for a successful repayment plan of a Mortgage that was 60 or more days delinquent based on the information the Servicer transmits to Freddie Mac via EDR and the Servicer’s monthly loan-level reporting. The Servicer must have: 1. Informed Freddie Mac that the Borrower has entered into a repayment plan (default action code 12) 2. Notified Freddie Mac that the Mortgage is current or is paid in full (b) Prohibition of certain Borrower fees; non-refusal of workout options due to late charges The Servicer may not charge any additional fees to the Borrower other than those provided for in Freddie Mac’s relief and workout options. The Servicer may not refuse to consider a workout option or require payment of accrued late charges as a condition of doing a workout. (c) Mortgage insurance claims Freddie Mac will file a claim for loss with the MI if the Mortgage is covered by mortgage insurance, and Freddie Mac will manage the claims payment process with the MI. The Servicer must provide all information and documentation pertaining to the claim to the MI no later than 60 days after the foreclosure sale, short sale or acceptance of a deed-in-lieu of foreclosure, or within any shorter time frame as specified by the mortgage insurance master policy or by Freddie Mac. If the MI reduces, suspends or denies the claim due to the Servicer’s actions or inactions, including, but not limited to, failure to comply with the Guide or applicable mortgage insurance requirements, then Freddie Mac may exercise its remedies provided by the Guide and the other Purchase Documents for the amount that is reduced, suspended or denied. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies.
Freddie Mac Single-Family Seller/Servicer Guide 9204.3 — Servicer compensation, fees and mortgage insurance considerations (part 3 of 4)
4 sections · 6,177 characters of verbatim text. Open a section to read it, or . Every section below is in the page source whether open or closed.
§11/16/26) Refer to Bulletins 2026-G and 2026-11, which announced…792 ch
11/16/26) Refer to Bulletins 2026-G and 2026-11, which announced updates related to Freddie Mac’s new event-based default related reporting requirements. Beginning November 16, 2026, Servicers may implement the new requirements if they are operationally ready to do so. If a Servicer adopts the new event-based default related reporting standards before the mandatory effective date of September 27, 2027, it must comply with the associated Guide requirements that will be effective on September 27, 2027 and, upon such adoption, must discontinue monthly EDR reporting. This section contains requirements related to: ■ Servicer compensation for alternatives to foreclosure ■ Prohibition of certain Borrower fees; non-refusal of workout options due to late charges ■ Mortgage insurance claims
aServicer compensation for alternatives to foreclosure Servicers…4,069 ch
(a) Servicer compensation for alternatives to foreclosure Servicers are eligible to receive compensation for completing certain alternatives to foreclosure. These amounts are incentives and are not considered to be base Servicing compensation. Freddie Mac may change these incentive payments at any time. (i) Compensation for settled workouts and successful repayment plans For eligible settled workouts and successful repayment plans, the Servicer will be compensated as specified in the table below: Compensation for eligible settled workouts and successful repayment plans Workout/ Relief type Incentive amount Comments Repayment plan $500 To qualify for the repayment plan incentive, the following conditions must be met: 1. The Mortgage was 60 or more days delinquent at the time the Borrower entered into the repayment plan 2. The Borrower completely reinstated or paid off the Mortgage 3. The Servicer reported the repayment plan to Freddie Mac via Resolve® as specified in Section 9203.2(d). Payment Deferral (all types) $500 Freddie Mac Flex Modification® $1,000 Servicer incentives are capped at a total of $1,000 per Mortgage for all repayment plans, Payment Deferrals and Freddie Mac Flex Modifications. Workout and relief options completed or begun prior to July 1, 2020 are not subject to the incentive cap. Freddie Mac Standard Short Sale and Make-Whole Preforeclosure Sales $2,200 Freddie Mac Standard Deed-in- $1,500 Lieu of Foreclosure (“DIL”) Servicers should direct questions regarding the status of workout incentives to [email protected]. The Servicer is not eligible to receive compensation if: ■ The Mortgage was sold to Freddie Mac with recourse ■ The Mortgage is insured by the FHA ■ The Mortgage is guaranteed by the VA or RHS ■ The Mortgage is subject to indemnification (ii) Paying compensation Servicers must elect to receive these funds via the Automated Clearing House (ACH) by following the steps outlined in Form 1132, Authorization for Automatic Transfer of Funds Through the Automated Clearing House (ACH) For Sellers/Servicers. (See Section 2405.1(a) for delivery instructions for Form 1132.) Freddie Mac will track all workouts a Servicer settles on a daily basis. Freddie Mac will also send the loan detail for all of the eligible workouts the Servicer settled and successful repayment plans that occurred during the period for which the Servicer is being compensated. Freddie Mac considers a workout settled when Freddie Mac has received and successfully processed the documentation and received the remittance and transmission(s) specified in the table below. Documentation and transmission requirements to receive workout incentives Documentation/transmission Mortgage modification Payment Deferral Short Sale Payoff Deed-inLieu of Foreclosure Completion and transmission of loan modification settlement data or Payment Deferral settlement data in Resolve Required Required Mortgage paid in full-prepaid. (Note: Servicers should remit Required Documentation and transmission requirements to receive workout incentives Documentation/transmission Mortgage modification Payment Deferral Short Sale Payoff Deed-inLieu of Foreclosure only the net proceeds due to Freddie Mac for a short sale payoff.) Completion and transmission of short sale settlement data in Resolve Required The original negotiated promissory note(s), if applicable Required Required Borrower cash contribution, if applicable Required Required Foreclosure sale/DIL to report the acquisition of the property and loan-level transaction to report Mortgage as a transfer to REO Required Freddie Mac will determine if a Servicer is entitled to compensation for a successful repayment plan of a Mortgage that was 60 or more days delinquent based on the information the Servicer transmits to Freddie Mac via EDR and the Servicer’s monthly loan-level reporting. The Servicer must have: 1. Informed Freddie Mac that the Borrower has entered into a repayment plan (default action code 12) 2. Notified Freddie Mac that the Mortgage is current or is paid in full
bProhibition of certain Borrower fees; non-refusal of workout…367 ch
(b) Prohibition of certain Borrower fees; non-refusal of workout options due to late charges The Servicer may not charge any additional fees to the Borrower other than those provided for in Freddie Mac’s relief and workout options. The Servicer may not refuse to consider a workout option or require payment of accrued late charges as a condition of doing a workout.
cMortgage insurance claims Freddie Mac will file a claim for loss…949 ch
(c) Mortgage insurance claims Freddie Mac will file a claim for loss with the MI if the Mortgage is covered by mortgage insurance, and Freddie Mac will manage the claims payment process with the MI. The Servicer must provide all information and documentation pertaining to the claim to the MI no later than 60 days after the foreclosure sale, short sale or acceptance of a deed-in-lieu of foreclosure, or within any shorter time frame as specified by the mortgage insurance master policy or by Freddie Mac. If the MI reduces, suspends or denies the claim due to the Servicer’s actions or inactions, including, but not limited to, failure to comply with the Guide or applicable mortgage insurance requirements, then Freddie Mac may exercise its remedies provided by the Guide and the other Purchase Documents for the amount that is reduced, suspended or denied. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies.
Freddie Mac Single-Family Seller/Servicer Guide 9204.3 — Servicer compensation, fees and mortgage insurance considerations (part 4 of 4)
09/27/27) This section contains requirements related to: ■ Servicer compensation for alternatives to foreclosure ■ Prohibition of certain Borrower fees; non-refusal of workout options due to late charges ■ Mortgage insurance claims (a) Servicer compensation for alternatives to foreclosure Servicers are eligible to receive compensation for completing certain alternatives to foreclosure. These amounts are incentives and are not considered to be base Servicing compensation. Freddie Mac may change these incentive payments at any time. (i) Compensation for settled workouts and successful repayment plans For eligible settled workouts and successful repayment plans, the Servicer will be compensated as specified in the table below: Compensation for eligible settled workouts and successful repayment plans Workout/ Relief type Incentive amount Comments Repayment plan $500 To qualify for the repayment plan incentive, the following conditions must be met: 1. The Mortgage was 60 or more days delinquent at the time the Borrower entered into the repayment plan 2. The Borrower completely reinstated or paid off the Mortgage 3. The Servicer reported the repayment plan to Freddie Mac via Resolve® as specified in Section 9203.2(d). Payment Deferral (all types) $500 Freddie Mac Flex Modification® $1,000 Servicer incentives are capped at a total of $1,000 per Mortgage for all repayment plans, Payment Deferrals and Freddie Mac Flex Modifications. Workout and relief options completed or begun prior to July 1, 2020 are not subject to the incentive cap. Freddie Mac Standard Short Sale and Make-Whole Preforeclosure Sales $2,200 Freddie Mac Standard Deed-inLieu of Foreclosure (“DIL”) $1,500 Servicers should direct questions regarding the status of workout incentives to [email protected]. The Servicer is not eligible to receive compensation if: ■ The Mortgage was sold to Freddie Mac with recourse ■ The Mortgage is insured by the FHA ■ The Mortgage is guaranteed by the VA or RHS ■ The Mortgage is subject to indemnification (ii) Paying compensation Servicers must elect to receive these funds via the Automated Clearing House (ACH) by following the steps outlined in Form 1132, Authorization for Automatic Transfer of Funds Through the Automated Clearing House (ACH) For Sellers/Servicers. (See Section 2405.1(a) for delivery instructions for Form 1132.) Freddie Mac will track all workouts a Servicer settles on a daily basis. Freddie Mac will also send the loan detail for all of the eligible workouts the Servicer settled and successful repayment plans that occurred during the period for which the Servicer is being compensated. Freddie Mac considers a workout settled when Freddie Mac has received and successfully processed the documentation and received the remittance and transmission(s) specified in the table below. Documentation and transmission requirements to receive workout incentives Documentation/transmission Mortgage modification Payment Deferral Short Sale Payoff Deed-inLieu of Foreclosure Completion and transmission of loan modification settlement data or Payment Deferral settlement data in Resolve Required Required Mortgage paid in full-prepaid. (Note: Servicers should remit only the net proceeds due to Freddie Mac for a short sale payoff.) Required Documentation and transmission requirements to receive workout incentives Documentation/transmission Mortgage modification Payment Deferral Short Sale Payoff Deed-inLieu of Foreclosure Completion and transmission of short sale settlement data in Resolve Required The original negotiated promissory note(s), if applicable Required Required Borrower cash contribution, if applicable Required Required Foreclosure sale/DIL to report the acquisition of the property and loan-level transaction to report Mortgage as a transfer to REO Required Freddie Mac will determine if a Servicer is entitled to compensation for a successful repayment plan of a Mortgage that was 60 or more days delinquent based on the information the Servicer transmits to Freddie Mac via Resolve, default related event reporting and the Servicer’s monthly loan-level reporting. The Servicer must have: 1. Informed Freddie Mac that the Borrower has entered into a repayment plan via Resolve 2. Reported the Repayment Plan Payment Received default related reporting event for each payment received under the repayment plan in accordance with Section 9102.6 and Exhibit 82, Default Reporting Dataset Guidelines 3. Notified Freddie Mac that the Mortgage is current or is paid in full (b) Prohibition of certain Borrower fees; non-refusal of workout options due to late charges The Servicer may not charge any additional fees to the Borrower other than those provided for in Freddie Mac’s relief and workout options. The Servicer may not refuse to consider a workout option or require payment of accrued late charges as a condition of doing a workout. (c) Mortgage insurance claims Freddie Mac will file a claim for loss with the MI if the Mortgage is covered by mortgage insurance, and Freddie Mac will manage the claims payment process with the MI. The Servicer must provide all information and documentation pertaining to the claim to the MI no later than 60 days after the foreclosure sale, short sale or acceptance of a deed-in-lieu of foreclosure, or within any shorter time frame as specified by the mortgage insurance master policy or by Freddie Mac. If the MI reduces, suspends or denies the claim due to the Servicer’s actions or inactions, including, but not limited to, failure to comply with the Guide or applicable mortgage insurance requirements, then Freddie Mac may exercise its remedies provided by the Guide and the other Purchase Documents for the amount that is reduced, suspended or denied. Refer to Chapter 3602 regarding repurchases, repurchase alternatives and other remedies.
Operationalizing Freddie Mac Single-Family Seller/Servicer Guide 9204.3 — Servicer compensation, fees and mortgage insurance considerations
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