Freddie Mac Single-Family Seller/Servicer Guide §9203.1 — Reinstatements and relief options (04/27/26)
Freddie Mac Guide §9203.1 (Reinstatements and relief options). Gap-fill (verbatim, ID-diff).
Verbatim regulatory text
Verbatim provisions from Freddie Mac Single-Family Seller/Servicer Guide §9203.1 — Reinstatements and relief options (04/27/26) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
Freddie Mac Guide 9203.1
Refer to Bulletin 2026-2, which announced updates related to Resolve® reporting requirements for repayment plans and forbearance agreements. Servicers may implement the new requirements prior to the mandatory October 1, 2026 version of this section if they are operationally ready to do so. This section contains information related to: ■ Reinstatements and relief options ■ General requirements for reinstatements and relief options ■ Types of reinstatement ■ When to accept full reinstatement ■ When to accept partial reinstatement of a Mortgage in foreclosure ■ Reporting and processing the reinstatement ■ Reimbursement of expenses related to reinstatements (a) Reinstatements and relief options The most desirable resolution to a Delinquency is reinstatement. Reinstatement is the act of restoring a delinquent Mortgage to current status. When the Servicer’s collection efforts do not result in reinstatement of a delinquent Mortgage, the Servicer should consider offering the Borrower a relief option. A relief option is an alternative to foreclosure that provides a Borrower with temporary relief or an opportunity to cure a Delinquency over a defined period of time or bring the Delinquency immediately current. If the Servicer has a Borrower whose situation does not meet Freddie Mac’s relief option eligibility requirements but the Servicer feels a relief option is still the best possible solution to cure the Delinquency, the Servicer must submit a request to Freddie Mac (see Directory 5) for Freddie Mac’s review. The Servicer must use Form 105, Multipurpose Loan Servicing Transmittal, and explain why a relief option is the best solution to the Delinquency.
Freddie Mac Guide 9203.1
203-2 In lieu of having the Servicer or Borrower prepare, sign and send, return or submit paper documents necessary to process a reinstatement or relief option, the Servicer and Borrower may provide loss mitigation information and documents electronically. Note: See Section 1401.3(h) for eligible documents and related requirements. (b) General requirements for reinstatements and relief options For all reinstatements and relief options, the Servicer must: 1. Comply with the requirements of the FHA, VA, RHS or MI and obtain approval from the FHA, VA, RHS or MI, if applicable 2. Retain any written agreements in the Mortgage file 3. Within two Business Days of the date on which the Servicer receives a written request for payoff or reinstatement figures, provide complete, written figures as of the request date to the attorney, trustee, workout specialist or outsourcing vendor requesting the information For all reinstatements and relief options, the Servicer must not: 1. Demand payment of expenses from the Borrower in excess of the costs the Servicer actually incurred at the time the Borrower reinstates the Mortgage. These costs may not exceed Freddie Mac’s approved expense amounts (see Exhibit 57A, Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses) unless the Servicer has obtained Freddie Mac’s approval to exceed these amounts, which approval may be requested by submitting Form 105 to Freddie Mac (see Directory 5) prior to incurring the expense. 2. Refuse to reinstate a Mortgage if the Borrower is unwilling or unable to pay a reinstatement or relief fee that is allowed by applicable law or the Purchase Documents. Among available options, the Servicer may defer collection of the fee until payoff of the Mortgage. 3. Charge the Borrower any of the costs itemized in Section 9701.4(a) (c) Types of reinstatement There are two types of reinstatement: full and partial. (i) Full reinstatement A full reinstatement occurs when the Borrower restores a delinquent Mortgage to current status by paying the total delinquent amount, including advances, delinquent principal and interest, legal costs and other expenses incurred and that are past due under the Note and the Security Instrument.
Freddie Mac Guide 9203.1
203-3 The Servicer must not charge or collect from the Borrower an amount that exceeds the expense limits specified in Exhibit 57A, except in cases where a higher expense amount is legally allowable and recoverable. In addition, the payment must not include reimbursement for costs the Servicer incurred if applicable law prohibits collection of those costs from the Borrower. (ii) Partial reinstatement A partial reinstatement occurs when the Borrower makes at least one full contractual monthly payment on a delinquent Mortgage but does not bring the Mortgage current. Servicers must report the loan level transaction in accordance with Section 8303.3(j). (iii)Partial reinstatement and repayment plan A partial reinstatement should be coupled with a repayment plan to restore a delinquent Mortgage to current status, but doing so is not mandatory. When processing a repayment plan: ■ The Borrower must pay an amount that: ❑ Equals or exceeds at least one full contractual monthly payment on a delinquent Mortgage, and ❑ Is less than the total delinquent amount due, including delinquent principal and interest, advances, legal costs and other expenses incurred and that are past due under the Note and the Security Instrument ■ The Borrower must agree to a repayment plan that provides for payment of the remaining arrearage, includes a stipulation that suspends the foreclosure proceedings during the repayment plan and allows the Servicer to recommence foreclosure at the point the foreclosure was suspended if the Borrower defaults on the repayment plan, unless otherwise prohibited by applicable law. Note: Exhibit 93, Evaluation Notices, includes a model repayment plan template and a model reinstatement template that the Servicer may combine and amend as necessary to comply with the requirements of this section and applicable law. ■ The Servicer must not charge or collect from the Borrower an amount that exceeds the expense limits specified in Exhibit 57, 1- to 4-Unit Property Approved Expense Amounts, and Exhibit 57A unless those amounts were approved by Freddie Mac. In addition, the payment must not include reimbursement for costs the Servicer incurred if applicable law prohibits collection of those costs from the Borrower.
Freddie Mac Guide 9203.1
203-4 Servicers that choose not to pair a partial reinstatement with a repayment plan must continue to attempt to resolve the Delinquency and remain responsible for adhering to foreclosure timeline requirements. (d) When to accept full reinstatement The Servicer must accept full reinstatement of a Mortgage if the payment, in cash or certified funds, includes the following: ■ Total delinquent amount ■ Accrued interest and unpaid principal ■ Actual legal costs, including any advances and additional expenses incurred ■ Costs for BPO, if applicable ■ Inspection fees ■ Accrued late charges. With the exception of inspection fees, regardless of expenses incurred, the Servicer must not charge the Borrower an amount that exceeds the expense limits specified in Exhibit 57A. In addition, the payment must not include reimbursement for costs the Servicer incurred if State law prohibits collection of those costs from the Borrower. The Servicer must not refuse to accept a full reinstatement if the Borrower offers to pay all amounts due except for the cost of the BPO, inspection fees and accrued late charges. The Servicer may make arrangements with the Borrower to pay the late charges after the Mortgage is reinstated. If the Borrower can pay all arrearages, inspection fees and costs, except for the cost of the BPO, the Servicer is not required to collect the BPO cost from the Borrower or remit the cost of the BPO to Freddie Mac. The Servicer must document the reason for nonremittance of the BPO cost in the file. The Servicer must collect the cost of the BPO before it can collect any accrued late charges. (e) When to accept partial reinstatement of a Mortgage in foreclosure The Servicer must accept partial reinstatement of a Mortgage referred to foreclosure if the following conditions are met. 1. The Borrower submits payment in cash or certified funds of: ■ All outstanding legal fees and related expenses, in amounts not to exceed the expense limits specified in Exhibit 57A, and
Freddie Mac Guide 9203.1
203-5 ■ An amount equal to, at a minimum, the first payment due under the repayment plan 2. If there is an Escrow account on the Mortgage, the Borrower must enter into a repayment plan with the Servicer that includes an agreement to repay the remaining delinquent interest, principal and Escrow (if applicable) and the scheduled monthly payments, no later than 12 months from the date the Servicer receives the partial reinstatement funds. The repayment plan must be in writing if the plan exceeds three months. If the Mortgage was referred to foreclosure prior to extending the repayment plan, the Borrower must make the first payment under the agreement in order to accept the terms of the plan. If there is no Escrow account on the Mortgage, the Servicer must establish one if the repayment period exceeds three months (unless prohibited by applicable law) and then may extend the repayment period to no more than 18 months without Freddie Mac’s approval. The plan must state: ■ The amount of the partial reinstatement payment ■ The total amount to be repaid ■ Beginning and end dates of the repayment period ■ The exact amount of the repayment plan payment that will be added to the Borrower’s regular monthly payment ■ That the Borrower must pay all scheduled monthly payments during the period of the repayment plan ■ That the Borrower must continue monthly payments according to the terms of the Note at the end of the plan ■ The Borrower agrees that the foreclosure proceedings are suspended during the repayment plan and that the Servicer is entitled to recommence foreclosure at the point the foreclosure was suspended if the Borrower defaults on the repayment plan Exhibit 93, includes a model repayment plan template and model reinstatement template that the Servicer may combine and amend as necessary to comply with the requirements of this section and applicable law. 3. The Borrower must submit information demonstrating his or her financial ability to make the: ■ Partial reinstatement payment
Freddie Mac Guide 9203.1
203-6 ■ Repayment plan payments (including the scheduled monthly payment) on a monthly basis ■ Monthly payments at the end of the repayment plan At the end of the repayment plan, the Servicer may make arrangements with the Borrower to collect accrued late charges, inspection fees and the cost of the BPO. However, the payment must not include reimbursement for costs the Servicer incurred if State law prohibits collection of those costs from the Borrower. If the Servicer or the Borrower propose a partial reinstatement plan that does not meet Freddie Mac’s criteria, but the Servicer believes it will result in the Borrower’s reinstatement of the Mortgage, the Servicer must submit the plan on Form 105 to Freddie Mac (see Directory 5) for consideration. (f) Reporting and processing the reinstatement (i) Processing partial reinstatements and repayment plans The Servicer must also notify Freddie Mac via an EDR transmission within three Business Days of the month following the month in which it accepted the initial payment on a repayment plan or a partial reinstatement of a Mortgage that was reported in foreclosure in the previous month and needs to be moved to delinquent status from foreclosure status. The Servicer must include the following activity in the EDR transmission: 1. Default action code 12 (Repayment Plan) indicates a 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. 2. Default action code 20 (Reinstatement (Partial)) is only required if, as a result of the partial reinstatement without a repayment plan, the Servicer needs to change the Mortgage status from foreclosure to delinquent 3. Servicers should not report default action code 12 in the last month of the repayment period The Servicer must continue to report the default action code 12 (Repayment Plan) for the Mortgage in its future monthly EDR transmissions, provided the Borrower is in compliance with the terms of the repayment plan, until the Mortgage has been fully reinstated (see above steps one through three) or paid off or a workout has been completed. If the Borrower fails to make a payment due under the repayment plan, the Servicer must discontinue reporting default action code 12 on its EDR transmission.
Freddie Mac Guide 9203.1
203-7 Note: For additional information about EDR, refer to Section 9102.6. If the Mortgage has been inactivated by Freddie Mac, the Servicer must report partial reinstatement in the Loan-Level Transaction as required in Section 8303.3(j). (ii) Processing requirements If the Servicer accepts a full or partial reinstatement on a Mortgage that is or was in foreclosure, then it must process the transaction as follows: 1. Take all necessary actions to prevent additional foreclosure expenses from being incurred, if applicable 2. Pay any foreclosure expenses that were actually incurred 3. Apply any remaining funds to the Mortgage 4. Return the Note, if appropriate, with a paper copy of the original or electronic or system-generated version of Form 1036, Request for Physical or Constructive Possession of Documents, to the Document Custodian by certified mail. If one of Freddie Mac’s Designated Custodians is holding the Note, submit the Note and any additional documentation, if required, as directed by the Designated Custodian. Seller/Servicers that use The Bank of New York Mellon Trust Company, N.A., as Designated Custodian, and use its web-based process will include a copy of the electronically generated 1036 Release Receipt Report when returning such items to the Designated Custodian (see Section 8107.1). (iii)Additional requirements for Mortgages with buydown funds Additional requirements for Mortgages with buydown funds are as follows: ■ When processing a reinstatement for a Mortgage subject to a temporary subsidy buydown plan in accordance with Section 4204.3, the Servicer must not apply funds in a buydown account to bring a delinquent Mortgage current unless it is required per the terms of the buydown agreement ■ Upon reinstatement of a Mortgage that is subject to a temporary subsidy buydown plan, the Borrower must resume their monthly payment amount as specified in the terms of the buydown agreement, subject to applicable law and the terms of the buydown agreement*
Freddie Mac Guide 9203.1
203-8 ■ 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. (g) Reimbursement of expenses related to reinstatements If applicable federal, State or local law prohibits collection of incurred expenses (e.g., legal fees and/or legal costs) from the Borrower upon reinstatement of the Mortgage, Freddie Mac will reimburse certain expenses the Servicer incurs. Note: See Section 9701.1(e)(iv) regarding unrecoverable expenses.
Freddie Mac Guide 9203.1
Reinstatements and relief options (Future effective date 10/01/26) This section contains information related to: ■ Reinstatements and relief options ■ General requirements for reinstatements and relief options ■ Types of reinstatement ■ When to accept full reinstatement ■ When to accept partial reinstatement of a Mortgage in foreclosure ■ Reporting and processing the reinstatement ■ Reimbursement of expenses related to reinstatements (a) Reinstatements and relief options The most desirable resolution to a Delinquency is reinstatement. Reinstatement is the act of restoring a delinquent Mortgage to current status. When the Servicer’s collection efforts do
Freddie Mac Guide 9203.1
203-9 not result in reinstatement of a delinquent Mortgage, the Servicer should consider offering the Borrower a relief option. A relief option is an alternative to foreclosure that provides a Borrower with temporary relief or an opportunity to cure a Delinquency over a defined period of time or bring the Delinquency immediately current. The most desirable resolution to a Delinquency is a reinstatement. When the Servicer’s collection efforts do not result in reinstatement of a delinquent Mortgage, the Servicer must evaluate Borrowers in accordance with the Freddie Mac loss mitigation evaluation hierarchy as set forth in Section 9201.2. If the Servicer has a Borrower whose situation does not meet Freddie Mac’s relief option eligibility requirements but the Servicer feels a relief option is still the best possible solution to cure the Delinquency, the Servicer must submit a request to Freddie Mac (see Directory 5) for Freddie Mac’s review. The Servicer must use Form 105, Multipurpose Loan Servicing Transmittal, and explain why a relief option is the best solution to the Delinquency. In lieu of having the Servicer or Borrower prepare, sign and send, return or submit paper documents necessary to process a reinstatement or relief option, the Servicer and Borrower may provide loss mitigation information and documents electronically. Note: See Section 1401.3(h) for eligible documents and related requirements. (b) General requirements for reinstatements and relief options For all reinstatements and relief options, the Servicer must: 1. Comply with the requirements of the FHA, VA, RHS or MI and obtain approval from the FHA, VA, RHS or MI, if applicable 2. Retain any written agreements in the Mortgage file 3. Within two Business Days of the date on which the Servicer receives a written request for payoff or reinstatement figures, provide complete, written figures as of the request date to the attorney, trustee, workout specialist or outsourcing vendor requesting the information For all reinstatements and relief options, the Servicer must not: 1. Demand payment of expenses from the Borrower in excess of the costs the Servicer actually incurred at the time the Borrower reinstates the Mortgage. These costs may not exceed Freddie Mac’s approved expense amounts (see Exhibit 57A, Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses) unless the Servicer has obtained Freddie Mac’s approval to exceed these amounts, which approval may be requested by submitting Form 105 to Freddie Mac (see Directory 5) prior to incurring the expense.