9203.11: Reporting repayment plans (07/01/16)
- Kacey Olson (Unlicensed)
© Freddie Mac Single-Family Seller Servicer Guide
In accordance with Section 9102.7, the Servicer must notify Freddie Mac via an EDR transmission with specific repayment plan activity after the Servicer has entered into a repayment plan with a Borrower. To validate the repayment plan, the Servicer must receive a repayment plan payment. Upon receipt of payment, the Servicer must notify Freddie Mac that the Borrower is on a repayment plan and provide Freddie Mac with an advanced Due Date of Last Paid Installment (DDLPI).
The Servicer must report:
- Default action code 12 (Repayment Plan) once the initial repayment plan payment is received. The Servicer must continue reporting this code for each month of the repayment period, except for the last month of the repayment period in which the Mortgage will be fully reinstated.
- Default action code 20 (Reinstatement (Full or Partial)) in the last month of the repayment period in which the Mortgage will be fully reinstated with receipt of the final payment. Servicers should not report default action code 12 in this last month.
The Servicer must continue to report that the Borrower is in a repayment plan until the Borrower has fully reinstated the Mortgage or the Borrower defaults on the repayment plan.
If the Borrower fails to make a payment due under the repayment plan, the Servicer must discontinue reporting default action code 12.
For additional information about EDR, refer to Section 9102.7.