Freddie Mac Single-Family Seller/Servicer Guide 9102.4 — Servicer collection efforts

This section contains requirements related to: ■ All collection efforts ■ Minimum collection efforts ■ Special Servicing, Early Delinquency Counseling and NextJob® re-employment services ■ Investment Property and rental income during Delinquency

(a) All collection efforts The Servicer must treat each Delinquency individually by varying the collection techniques to fit the individual circumstances. The Servicer must avoid establishing a fixed routine, which is particularly ineffective when dealing with chronically delinquent Borrowers. All collection efforts must be based on the extent of the Delinquency and the Servicer’s knowledge of the following factors: ■ Borrower’s prior payment history ■ Borrower’s credit history ■ Borrower’s employment situation ■ Borrower’s reason for default ■ Borrower’s willingness and ability to repay ■ Borrower is deceased or the property is included as part of the Borrower’s estate ■ Mortgaged Premises’ condition ■ Mortgaged Premises’ occupancy status If there is a known potential risk of loss or ownership to Freddie Mac, the Borrower must be referred for loss mitigation immediately. Servicers should encourage Borrowers to set up Automated Clearing House (ACH) payment arrangements. If a Borrower agreed to have his or her monthly payments automatically withdrawn from a bank account, the Servicer must ensure that the correct monthly payment is withdrawn (especially after an Escrow analysis has taken place) and processed timely. If the ACH payment cannot be processed on the specified date the Borrower has agreed to, the Servicer must begin efforts to contact the Borrower within 48 hours to determine the reason for the missed payment.

(b) Minimum collection efforts The Servicer must, at a minimum: ■ Be readily available to the Borrower to offer financial counseling and advice on curing the Delinquency and explaining alternatives to foreclosure ■ Make personal contact with the Borrower as early and often as necessary to promptly cure the Delinquency. (Mortgages in Bankruptcy or litigation may be excluded if necessary under applicable law, rules of professional responsibility or court rules.) Servicers are authorized to use alternative outreach methods to contact the Borrower as permitted by applicable law including, but not limited to, e-mail, text messaging or voice response unit technology. ■ Continue to contact the Borrower if satisfactory arrangements have not been made to cure the Delinquency or until the Servicer determines foreclosure is appropriate ■ Issue the breach letter (may also be referred to as the “notice of acceleration” or “demand letter”) for all Mortgages no later than the 75th day of Delinquency. If State law requires the breach letter (or any other pre-breach letter) to be sent prior to the 75th day of Delinquency in order to be able to refer the Mortgage to foreclosure by the 120th day of Delinquency (i.e., 150 days after the DDLPI), the Servicer must send the breach letter on such earlier date. If the Servicer determines the property is vacant or abandoned pursuant to Section 9202.3(c)(iii), then the Servicer must: ❑ Issue a breach letter within 10 days of the determination, provided the Mortgage is greater than 30 days delinquent; and ❑ Refer the Mortgage to foreclosure after expiration of the breach letter, unless the Servicer establishes quality right party contact with the Borrower to resolve the Delinquency. Regardless of whether quality right party contact is achieved, the Mortgage must be referred to foreclosure no later than the 120th day of Delinquency unless one of the exceptions to postpone foreclosure referral described in Sections 9301.2(c) and 9301.2(d) applies. ■ Contact the lessor for leasehold Mortgages and any lender with a prior lien on the fee simple landowner/lessor’s fee simple interest ■ Continue skip trace efforts until all reasonable sources have been attempted or contact numbers and addresses have been verified Servicers that maintain a call center must meet minimum call center performance standards as set forth in Section 9201.5. The following table lists the minimum collection efforts that must be made in an attempt to bring a delinquent Mortgage current. Note: If the day a Servicer is required to call a Borrower is not a Business Day and the Servicer is not open on such day to conduct loss mitigation and collection activities, the Servicer may call the Borrower on the next Business Day. Minimum collection efforts Days after Due Date Action required 19 Send late notices/reminder letters to delinquent Borrowers no later than the 20th day of the month (19th day of Delinquency). Note: Servicers must not send a late notice/reminder letter to a Borrower during an active forbearance plan term. This applies without regard to whether the Borrower’s monthly payment is reduced or suspended during the forbearance plan term. Additionally, this applies to forbearance plans for Borrowers with any eligible hardship type. 36 Initiate contact with each delinquent Borrower as early in the delinquency cycle as possible to secure a payment or payment arrangement but no later than the 36th day after the Due Date of an unpaid monthly installment, unless ACH payment arrangements or other arrangements to cure the Delinquency have been established. The Servicer may tailor its contact attempts appropriately based on the risk characteristics of the Mortgage, each Borrower’s level of Delinquency and previous payment habits and the minimum contact requirements set forth in this Section 9102.4. Borrower contact must continue at least every seventh day at varying times throughout the day until the earlier of the 210th day after the Due Date of an unpaid monthly installment or quality right party contact is achieved and: Minimum collection efforts Days after Due Date Action required ■ The Servicer determines that the Borrower does not want to pursue an alternative to foreclosure or the Delinquency is cured ■ The Servicer achieves quality right party contact and has obtained from the Borrower a promise to pay the delinquent amount by a specified date (not to exceed 30 days) ■ A complete Borrower Response Package is received in accordance with Section 9102.5(d); or ■ The Borrower enters into a relief or workout option with the Servicer 45 If a Servicer has not achieved quality right party contact and a resolution to the Delinquency, the Servicer must send at least one Borrower Solicitation Package to the delinquent Borrower no later than the 45th day after the Due Date of an unpaid monthly installment. If a Servicer has achieved quality right party contact and has obtained from the Borrower a resolution to the Delinquency, the Servicer is not required to send the Borrower Solicitation Package. However, in such instance, the Servicer must comply with any early intervention notice that may be required under applicable law. If the Borrower fails to perform under the conditions of a relief or workout option, the Servicer must resume collection efforts, including sending the Borrower Solicitation Package. Generally, the Borrower Solicitation Package must include a Borrower Solicitation Letter (see Exhibit 1145, Freddie Mac Borrower Solicitation Letter), Form 710, Mortgage Assistance Application, frequently asked questions (FAQs) and foreclosure rescue scam information. However, a Servicer may choose to send only the Borrower Solicitation Letter and elect to send Form 710, FAQs and foreclosure rescue scam information upon establishing quality right party contact. In addition, the Servicer may provide the FAQs and foreclosure rescue scam information on its website and provide a link to that information in the Borrower Solicitation Letter. See also Section 9102.5(d) for specific information on what must be included in the solicitation to the Borrower. Note: When sending the Borrower Solicitation Package, Servicers are authorized to edit Form 710, if permitted by applicable law, to exclude references to Internal Revenue Service Form 4506-C; or, to the extent required by applicable law, to indicate that such form may be required to Minimum collection efforts Days after Due Date Action required complete the application and the circumstances when such form must be obtained or processed in accordance with Section 9102.5(c)(ii). 60-75 Send the Freddie Mac Flex Modification® Solicitation Cover Letter and Freddie Mac Flex Modification Trial Period Plan Solicitation Offer – Not Based on an Evaluation of a BRP as set forth in Section 9102.5 to Borrowers eligible for a streamlined offer for a Freddie Mac Flex Modification in accordance with Section 9206.1(c). Send 60-75 days after the Due Date of an unpaid monthly installment for an eligible Borrower with a Step-Rate Mortgage. Servicers must continue to make efforts to complete an incomplete Borrower Response Package to the extent required by applicable law and regulations. Order the initial property inspection on or after day 90 and obtain a complete property inspection report by day 120 unless: ■ The Servicer has established quality right party contact or ■ A full monthly Mortgage payment has been received within the last 30 days If the property is found to be vacant or the occupancy status is unknown, property inspections must continue as long as the Mortgage remains 90 or more days delinquent, regardless of whether the Servicer achieves quality right party contact. Contact each known superior lienholder, if applicable. 75 Send the breach letter for all Mortgages, including First Lien Mortgages and modified Mortgages no later than the 75th day of Delinquency (i.e., 105 days after the DDLPI). If State law requires the breach letter (or any other pre-breach letter or notice) to be sent prior to the 75th day of Delinquency in order to be able to refer the Mortgage to foreclosure as required in Sections 9301.2(c) and 9301.2(d), the Servicer must send the breach letter on such earlier date. 90-105 Send Freddie Mac Flex Modification® Solicitation Cover Letter and Freddie Mac Flex Modification Trial Period Plan Solicitation Offer – Not Minimum collection efforts Days after Due Date Action required Based on an Evaluation of a BRP as set forth in Section 9102.5 to Borrowers eligible for a streamlined offer for a Freddie Mac Flex Modification in accordance with Section 9206.1(c). Send 90-105 days after the Due Date of an unpaid monthly installment for all other eligible Borrowers who did not receive a solicitation between day 60 and 75 of Delinquency (i.e., certain Borrowers with Step-Rate Mortgages). 105 and greater Within 15 days prior to foreclosure referral, the Servicer must review the Mortgage file to ensure that: ■ The Servicer made every attempt to achieve quality right party contact in accordance with Section 9102.3, ■ The breach letter has been issued and expired, ■ At least one Borrower Solicitation Package or Borrower Solicitation Letter has been sent by the 45th day after the Due Date of an unpaid monthly installment and the response period has expired without an affirmative Borrower response, and ■ There is neither an approved payment arrangement nor an alternative to foreclosure offer pending for which the Borrower response period has not expired 120 Refer all Mortgages secured by properties other than Primary Residences and Mortgages secured by Primary Residences when permitted by applicable law, including First Lien Mortgages and modified Mortgages with expired breach letters to foreclosure no later than the 120th day of Delinquency (150 days after the DDLPI) unless one of the exceptions in Sections 9301.2(c) and 9301.2(d) applies. 121 and greater (or earlier if referral to foreclosure occurs prior to day 120) Refer all Mortgages secured by Primary Residences to foreclosure after expiration of the breach letter, but no earlier than 151 days from the DDLPI (121st day of Delinquency). Note: Refer to Sections 9301.2(c) and 9301.2(d) for additional requirements related to foreclosure referral. Minimum collection efforts Days after Due Date Action required 211 After the 210th day after the Due Date of an unpaid monthly installment, the Servicer has discretion on the continuation and frequency of contact attempts with a delinquent Borrower. However, the Servicer must discontinue all contact attempts 60 days prior to a foreclosure sale date for a judicial foreclosure or 30 days prior to a foreclosure sale date for a nonjudicial foreclosure, unless the Servicer is required to continue contact attempts by applicable law. Servicers may use their own methodology or a tool that uses statistical models to predict worsening Delinquency and use the results of the tool to tailor its collection efforts (“Collection and Loss Mitigation Tool”) to determine when contact attempts should begin. Regardless of the methodology or tool employed, Servicers must comply with the minimum collection time frames in this section even if a Collection and Loss Mitigation Tool is used, including initiating contact attempts no later than 36 days after the Due Date of an unpaid monthly installment. Servicers using a Collection and Loss Mitigation Tool when managing contact attempts must make model specifications and code available to Freddie Mac upon request. Servicers must conduct periodic reviews to ensure the effectiveness of the Collection and Loss Mitigation Tool, including compliance with applicable laws, such as anti-discriminatory laws. Freddie Mac reserves the right to require a Servicer to discontinue the use of a Collection and Loss Mitigation Tool for Freddie Mac Mortgages.

(c) Special Servicing, Early Delinquency Counseling and NextJob® re-employment services The requirements for special Servicing, Early Delinquency Counseling and NextJob® reemployment services, as described in this section, apply to Freddie Mac Home Possible® Mortgages (see Chapter 4501). (i) Special Servicing — Welcome Letter Servicers must send the Borrower a letter, shortly after closing and before the first Mortgage payment is due, stressing the importance of making timely payments and advising the Borrower to contact the Servicer if he or she experiences any financial problems. The letter may be incorporated into the welcome letter sent to Borrowers after closing. The letter must include the following: ■ Instructions on how to contact the Servicer if the Borrower is having difficulty making the Mortgage payment on time ■ The Servicer’s business hours ■ A toll-free telephone number to reach the Servicer (ii) Early Delinquency Counseling The following provisions apply to Early Delinquency Counseling: ■ Early Delinquency Counseling is counseling provided to a delinquent Borrower by a nonprofit third-party homeownership-counseling agency or an eligible Servicer that involves identifying the reason(s) a Borrower did not make a Mortgage payment on time and working with the Borrower to resolve any financial problems so that future Mortgage payments can be made on a timely basis. The counseling includes a personal and interactive relationship with the Borrower that deals with money management, budgeting and debt management counseling ■ Servicers must offer Early Delinquency Counseling, including household budget management counseling, at no charge to delinquent Borrowers for each Delinquency that occurs during the first year following the Note Date. In addition, if at any time during the life of the Mortgage the Borrower is having difficulty making Mortgage payments, the Servicer should advise the Borrower to speak with the Servicer or contact a counseling agency for further assistance. ■ The Servicer must provide counseling in accordance with at least one of the following options: ❑ A nonprofit third-party homeownership counseling agency ❑ A Servicer. The Servicer may conduct the counseling provided the Servicer has policies and procedures in place to offer the same kind of comprehensive counseling, budgeting and advising capabilities as a counseling agency. ❑ A HUD-approved national counseling agency specified by Freddie Mac. The Servicer may use this option to refer delinquent Borrowers with Home Possible Mortgages to Freddie Mac for counseling services provided by a national counseling agency without charge to the Servicer. To refer a delinquent Borrower for counseling services provided by an agency, the Servicer must complete the “Counseling Agency-Servicer Referral” template in accordance with the instructions provided in the template and send the referral via secure e-mail to Freddie Mac at [email protected]. The template is accessible at https://sf.freddiemac.com/docs/xls/factsheet/counseling_servicer_referral.xls. The template contains instructions for carrying out referrals to the agencies and for identifying Mortgages that are ineligible for referral. After Freddie Mac receives the referral, Freddie Mac and the agency will contact the Borrower to offer counseling services to the Borrower. For more information about the network of national counseling agencies, Servicers should visit the My Home by Freddie Mac website at https://myhome.freddiemac.com/resources/housing-help-centers. If a Servicer relies on a counseling agency, it must be fully aware of the status or outcome of all counseling efforts the counseling agency undertakes with a specific Borrower, including: ■ Initial contact with delinquent Borrower. If the Borrower is experiencing a Delinquency, the Servicer must: ❑ Send a letter advising the Borrower of the availability of free counseling ❑ Contact the delinquent Borrower to determine the Borrower’s current financial situation and the reason for the Delinquency ■ Counseling process and actions. The counseling must include the following: ❑ Analyzing the Borrower’s financial situation and developing a plan of action for solving the Delinquency, which in most cases will be a budget worksheet or workout plan giving priority to the Mortgage payment ❑ Developing a budget and debt repayment plan enabling the Borrower to meet his or her financial obligations ❑ Reviewing the budget worksheet or workout plan with the Borrower and the Servicer, if applicable, so a decision can be made on how to proceed ■ In addition to minimum collection efforts set forth in this section, the Servicer must offer Early Delinquency Counseling no later than the 30th day after the Due Date and schedule or conduct the initial counseling session with the Borrower no later than the 45th day after the Due Date ■ If the Servicer or a third-party non-profit homeownership counseling agency chosen by the Servicer provides the counseling, the Servicer must include in the Mortgage file: ❑ A copy of the “Welcome Letter” as described in Section 9102.4(c)(i) ❑ The date(s) that counseling was offered ❑ The Borrower’s response(s) ❑ The name of the counseling agency providing the counseling (if not the Servicer) ❑ A brief summary of the results of the counseling ■ If the Servicer utilizes a HUD-approved national counseling agency specified by Freddie Mac to provide the counseling, as outlined above, the Servicer must include in the Mortgage file: ❑ A copy of the “Welcome Letter” as described in Section 9102.4(c)(i) ❑ The results of the counseling outreach as provided by Freddie Mac or the specified HUD national counseling agency, as applicable ■ If the Mortgage is included in a Transfer of Servicing before the end of the one-year period during which Early Delinquency Counseling is required, the transferee Servicer must be informed of the requirement and must be able to provide the required counseling or make arrangements for a counseling agency, as necessary (iii)NextJob re-employment services Increasing homeownership opportunities in underserved markets across the nation, including in rural and high-needs areas, is a key component of Freddie Mac’s Duty to Serve plan. High-needs areas include: ■ Middle Appalachia ■ The lower Mississippi Delta ■ Colonias ■ Other tracts located in areas subject to persistent poverty As part of the Duty to Serve plan, Freddie Mac is providing an opportunity for distressed Borrowers with a Home Possible Mortgage who reside in a high-needs area to receive reemployment services through NextJob. NextJob is a re-employment services company that assists Borrowers with job search skills and training to increase the Borrower’s likelihood of re-employment after the loss of a job, reduced hours or other employment challenges that threaten the Borrower’s ability to make timely mortgage payments. NextJob will contact the Borrower and offer re-employment services, which include: ■ One-on-one job coaching ■ Access to “Job Talk” webinars, and ■ Access to NextJob’s proprietary online job search training program Servicers are encouraged to refer Borrowers with Home Possible Mortgages in Duty to Serve high-needs areas (refer to Exhibit 40, Duty to Serve High-Needs Areas) who have suffered a loss of income due to unemployment or underemployment to Freddie Mac for referral to NextJob. The Borrower qualifications appear in the table below: NextJob re-employment services eligibility requirements Eligibility Eligibility requirements Borrower eligibility The Borrower must have: ■ Suffered a loss of income due to unemployment or underemployment, and ■ Requested loss mitigation assistance from the Servicer Mortgage eligibility The Mortgage must be: ■ Located in a designated Duty to Serve high-needs area listed in Exhibit 40 ■ A Home Possible Mortgage Eligibility exclusions The following Borrowers are not eligible for NextJob re-employment services: ■ Borrowers who are 12 months or more delinquent at the time of Servicer evaluation ■ Borrowers in active repayment plans ■ Borrowers in active modification Trial Period Plans ■ Borrowers approved for short sales or deeds-in-lieu of foreclosure ■ Borrowers with Mortgages: ❑ Subject to active non-routine litigation ❑ Subject to active bankruptcy proceedings ❑ That are FHA, VA or RHS insured ❑ With a foreclosure sale scheduled within the next 60 days, or ❑ That have been referred to foreclosure if the parties are in mediation If a Borrower meets the eligibility criteria above, Servicers participating in the NextJob program must provide the following information to Freddie Mac on a Microsoft Excel® spreadsheet for each Borrower the Servicer is referring, in the format provided in Exhibit 41, NextJob Referral Template for Borrowers with Home Possible Mortgages, which includes the following information: ■ Freddie Mac loan number ■ Borrower name ■ Borrower phone number ■ Borrower State of residence, and ■ Servicer contact name and e-mail address The Servicer must send the Excel spreadsheet to [email protected] up to twice per month only on the 15th or 30th day of the month. Servicers with no eligible Borrowers for a particular month are not required to make a submission. Three to six Business Days after receiving the submission, Freddie Mac will e-mail the Servicer a list of Borrowers who were referred to NextJob. NextJob will contact Borrowers by phone and work with them to complete the Homeowner Re-employment Registration and Waiver Agreement to initiate the reemployment services. NextJob will attempt to contact the Borrowers for 20 days. NextJob will provide job skills services and ask the Borrower to complete a survey at the end of the skills training. Freddie Mac will e-mail the Servicer monthly updates in a report entitled “Disposition of NextJob Referrals.”

(d) Investment Property and rental income during Delinquency If satisfactory arrangements for repayment of the Delinquency have not been made, the Servicer must request that the Borrower consent to the appointment of a real estate agent or other agent to collect rents, maintain the Mortgaged Premises and make payments to the Servicer. If such arrangements are not made, the Servicer must determine what means are available to obtain the rental income and submit a recommendation to Freddie Mac (see Directory 5).

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: ■ All collection efforts ■ Minimum collection efforts ■ Special Servicing, Early Delinquency Counseling and NextJob® re-employment services ■ Investment Property and rental income during Delinquency

(a) All collection efforts The Servicer must treat each Delinquency individually by varying the collection techniques to fit the individual circumstances. The Servicer must avoid establishing a fixed routine, which is particularly ineffective when dealing with chronically delinquent Borrowers. All collection efforts must be based on the extent of the Delinquency and the Servicer’s knowledge of the following factors: ■ Borrower’s prior payment history ■ Borrower’s credit history ■ Borrower’s employment situation ■ Borrower’s reason for default ■ Borrower’s willingness and ability to repay ■ Borrower is deceased or the property is included as part of the Borrower’s estate ■ Mortgaged Premises’ condition ■ Mortgaged Premises’ occupancy status If there is a known potential risk of loss or ownership to Freddie Mac, the Borrower must be referred for loss mitigation immediately. Servicers should encourage Borrowers to set up Automated Clearing House (ACH) payment arrangements. If a Borrower agreed to have his or her monthly payments automatically withdrawn from a bank account, the Servicer must ensure that the correct monthly payment is withdrawn (especially after an Escrow analysis has taken place) and processed timely. If the ACH payment cannot be processed on the specified date the Borrower has agreed to, the Servicer must begin efforts to contact the Borrower within 48 hours to determine the reason for the missed payment.

(b) Minimum collection efforts The Servicer must, at a minimum: ■ Be readily available to the Borrower to offer financial counseling and advice on curing the Delinquency and explaining alternatives to foreclosure ■ Make personal contact with the Borrower as early and often as necessary to promptly cure the Delinquency. (Mortgages in Bankruptcy or litigation may be excluded if necessary under applicable law, rules of professional responsibility or court rules.) Servicers are authorized to use alternative outreach methods to contact the Borrower as permitted by applicable law including, but not limited to, e-mail, text messaging or voice response unit technology. ■ Continue to contact the Borrower if satisfactory arrangements have not been made to cure the Delinquency or until the Servicer determines foreclosure is appropriate ■ Issue the breach letter (may also be referred to as the “notice of acceleration” or “demand letter”) for all Mortgages no later than the 75th day of Delinquency. If State law requires the breach letter (or any other pre-breach letter) to be sent prior to the 75th day of Delinquency in order to be able to refer the Mortgage to foreclosure by the 120th day of Delinquency (i.e., 150 days after the DDLPI), the Servicer must send the breach letter on such earlier date. If the Servicer determines the property is vacant or abandoned pursuant to Section 9202.3(c)(iii), then the Servicer must: ❑ Issue a breach letter within 10 days of the determination, provided the Mortgage is greater than 30 days delinquent; and ❑ Refer the Mortgage to foreclosure after expiration of the breach letter, unless the Servicer establishes quality right party contact with the Borrower to resolve the Delinquency. Regardless of whether quality right party contact is achieved, the Mortgage must be referred to foreclosure no later than the 120th day of Delinquency unless one of the exceptions to postpone foreclosure referral described in Sections 9301.2(c) and 9301.2(d) applies. ■ Contact the lessor for leasehold Mortgages and any lender with a prior lien on the fee simple landowner/lessor’s fee simple interest ■ Continue skip trace efforts until all reasonable sources have been attempted or contact numbers and addresses have been verified Servicers that maintain a call center must meet minimum call center performance standards as set forth in Section 9201.5. The following table lists the minimum collection efforts that must be made in an attempt to bring a delinquent Mortgage current. Note: If the day a Servicer is required to call a Borrower is not a Business Day and the Servicer is not open on such day to conduct loss mitigation and collection activities, the Servicer may call the Borrower on the next Business Day. Minimum collection efforts Days after Due Date Action required 19 Send late notices/reminder letters to delinquent Borrowers no later than the 20th day of the month (19th day of Delinquency). Note: Servicers must not send a late notice/reminder letter to a Borrower during an active forbearance plan term. This applies without regard to whether the Borrower’s monthly payment is reduced or suspended during the forbearance plan term. Additionally, this applies to forbearance plans for Borrowers with any eligible hardship type. 36 Initiate contact with each delinquent Borrower as early in the delinquency cycle as possible to secure a payment or payment arrangement but no later than the 36th day after the Due Date of an unpaid monthly installment, unless ACH payment arrangements or other arrangements to cure the Delinquency have been established. The Servicer may tailor its contact attempts appropriately based on the risk characteristics of the Mortgage, each Borrower’s level of Delinquency and previous payment habits and the minimum contact requirements set forth in this Section 9102.4. Borrower contact must continue at least every seventh day at varying times throughout the day until the earlier of the 210th day after the Due Minimum collection efforts Days after Due Date Action required Date of an unpaid monthly installment or quality right party contact is achieved and: ■ The Servicer determines that the Borrower does not want to pursue an alternative to foreclosure or the Delinquency is cured ■ The Servicer achieves quality right party contact and has obtained from the Borrower a promise to pay the delinquent amount by a specified date (not to exceed 30 days) ■ A complete Borrower Response Package is received in accordance with Section 9102.5(d); or ■ The Borrower enters into a relief or workout option with the Servicer 45 If a Servicer has not achieved quality right party contact and a resolution to the Delinquency, the Servicer must send at least one Borrower Solicitation Package to the delinquent Borrower no later than the 45th day after the Due Date of an unpaid monthly installment. If a Servicer has achieved quality right party contact and has obtained from the Borrower a resolution to the Delinquency, the Servicer is not required to send the Borrower Solicitation Package. However, in such instance, the Servicer must comply with any early intervention notice that may be required under applicable law. If the Borrower fails to perform under the conditions of a relief or workout option, the Servicer must resume collection efforts, including sending the Borrower Solicitation Package. Generally, the Borrower Solicitation Package must include a Borrower Solicitation Letter (see Exhibit 1145, Freddie Mac Borrower Solicitation Letter), Form 710, Mortgage Assistance Application, frequently asked questions (FAQs) and foreclosure rescue scam information. However, a Servicer may choose to send only the Borrower Solicitation Letter and elect to send Form 710, FAQs and foreclosure rescue scam information upon establishing quality right party contact. In addition, the Servicer may provide the FAQs and foreclosure rescue scam information on its website and provide a link to that information in the Borrower Solicitation Letter. See also Section 9102.5(d) for specific information on what must be included in the solicitation to the Borrower. Note: When sending the Borrower Solicitation Package, Servicers are authorized to edit Form 710, if permitted by applicable law, to exclude Minimum collection efforts Days after Due Date Action required references to Internal Revenue Service Form 4506-C; or, to the extent required by applicable law, to indicate that such form may be required to complete the application and the circumstances when such form must be obtained or processed in accordance with Section 9102.5(c)(ii). 60-75 Send the Freddie Mac Flex Modification® Solicitation Cover Letter and Freddie Mac Flex Modification Trial Period Plan Solicitation Offer – Not Based on an Evaluation of a BRP as set forth in Section 9102.5 to Borrowers eligible for a streamlined offer for a Freddie Mac Flex Modification in accordance with Section 9206.1(c). Send 60-75 days after the Due Date of an unpaid monthly installment for an eligible Borrower with a Step-Rate Mortgage. Servicers must continue to make efforts to complete an incomplete Borrower Response Package to the extent required by applicable law and regulations. Order the initial property inspection on or after day 90 and obtain a complete property inspection report by day 120 unless: ■ The Servicer has established quality right party contact or ■ A full monthly Mortgage payment has been received within the last 30 days If the property is found to be vacant or the occupancy status is unknown, property inspections must continue as long as the Mortgage remains 90 or more days delinquent, regardless of whether the Servicer achieves quality right party contact. Contact each known superior lienholder, if applicable. 75 Send the breach letter for all Mortgages, including First Lien Mortgages and modified Mortgages no later than the 75th day of Delinquency (i.e., 105 days after the DDLPI). If State law requires the breach letter (or any other pre-breach letter or notice) to be sent prior to the 75th day of Delinquency in order to be able to refer the Mortgage to foreclosure as required in Sections 9301.2(c) and 9301.2(d), the Servicer must send the breach letter on such earlier date. Minimum collection efforts Days after Due Date Action required 90-105 Send Freddie Mac Flex Modification® Solicitation Cover Letter and Freddie Mac Flex Modification Trial Period Plan Solicitation Offer – Not Based on an Evaluation of a BRP as set forth in Section 9102.5 to Borrowers eligible for a streamlined offer for a Freddie Mac Flex Modification in accordance with Section 9206.1(c). Send 90-105 days after the Due Date of an unpaid monthly installment for all other eligible Borrowers who did not receive a solicitation between day 60 and 75 of Delinquency (i.e., certain Borrowers with Step-Rate Mortgages). 105 and greater Within 15 days prior to foreclosure referral, the Servicer must review the Mortgage file to ensure that: ■ The Servicer made every attempt to achieve quality right party contact in accordance with Section 9102.3, ■ The breach letter has been issued and expired, ■ At least one Borrower Solicitation Package or Borrower Solicitation Letter has been sent by the 45th day after the Due Date of an unpaid monthly installment and the response period has expired without an affirmative Borrower response, and ■ There is neither an approved payment arrangement nor an alternative to foreclosure offer pending for which the Borrower response period has not expired 120 Refer all Mortgages secured by properties other than Primary Residences and Mortgages secured by Primary Residences when permitted by applicable law, including First Lien Mortgages and modified Mortgages with expired breach letters to foreclosure no later than the 120th day of Delinquency (150 days after the DDLPI) unless one of the exceptions in Sections 9301.2(c) and 9301.2(d) applies. 121 and greater (or earlier if referral to foreclosure Refer all Mortgages secured by Primary Residences to foreclosure after expiration of the breach letter, but no earlier than 151 days from the DDLPI (121st day of Delinquency). Note: Refer to Sections 9301.2(c) and 9301.2(d) for additional requirements related to foreclosure referral. Minimum collection efforts Days after Due Date Action required occurs prior to day 120) 211 After the 210th day after the Due Date of an unpaid monthly installment, the Servicer has discretion on the continuation and frequency of contact attempts with a delinquent Borrower. However, the Servicer must discontinue all contact attempts 60 days prior to a foreclosure sale date for a judicial foreclosure or 30 days prior to a foreclosure sale date for a nonjudicial foreclosure, unless the Servicer is required to continue contact attempts by applicable law. Servicers may use their own methodology or a tool that uses statistical models to predict worsening Delinquency and use the results of the tool to tailor its collection efforts (“Collection and Loss Mitigation Tool”) to determine when contact attempts should begin. Regardless of the methodology or tool employed, Servicers must comply with the minimum collection time frames in this section even if a Collection and Loss Mitigation Tool is used, including initiating contact attempts no later than 36 days after the Due Date of an unpaid monthly installment. Servicers using a Collection and Loss Mitigation Tool when managing contact attempts must make model specifications and code available to Freddie Mac upon request. Servicers must conduct periodic reviews to ensure the effectiveness of the Collection and Loss Mitigation Tool, including compliance with applicable laws, such as anti-discriminatory laws. Freddie Mac reserves the right to require a Servicer to discontinue the use of a Collection and Loss Mitigation Tool for Freddie Mac Mortgages.

(c) Special Servicing, Early Delinquency Counseling and NextJob® re-employment services The requirements for special Servicing, Early Delinquency Counseling and NextJob® reemployment services, as described in this section, apply to Freddie Mac Home Possible® Mortgages (see Chapter 4501). (i) Special Servicing — Welcome Letter Servicers must send the Borrower a letter, shortly after closing and before the first Mortgage payment is due, stressing the importance of making timely payments and advising the Borrower to contact the Servicer if he or she experiences any financial problems. The letter may be incorporated into the welcome letter sent to Borrowers after closing. The letter must include the following: ■ Instructions on how to contact the Servicer if the Borrower is having difficulty making the Mortgage payment on time ■ The Servicer’s business hours ■ A toll-free telephone number to reach the Servicer (ii) Early Delinquency Counseling The following provisions apply to Early Delinquency Counseling: ■ Early Delinquency Counseling is counseling provided to a delinquent Borrower by a nonprofit third-party homeownership-counseling agency or an eligible Servicer that involves identifying the reason(s) a Borrower did not make a Mortgage payment on time and working with the Borrower to resolve any financial problems so that future Mortgage payments can be made on a timely basis. The counseling includes a personal and interactive relationship with the Borrower that deals with money management, budgeting and debt management counseling ■ Servicers must offer Early Delinquency Counseling, including household budget management counseling, at no charge to delinquent Borrowers for each Delinquency that occurs during the first year following the Note Date. In addition, if at any time during the life of the Mortgage the Borrower is having difficulty making Mortgage payments, the Servicer should advise the Borrower to speak with the Servicer or contact a counseling agency for further assistance. ■ The Servicer must provide counseling in accordance with at least one of the following options: ❑ A nonprofit third-party homeownership counseling agency ❑ A Servicer. The Servicer may conduct the counseling provided the Servicer has policies and procedures in place to offer the same kind of comprehensive counseling, budgeting and advising capabilities as a counseling agency. ❑ A HUD-approved national counseling agency specified by Freddie Mac. The Servicer may use this option to refer delinquent Borrowers with Home Possible Mortgages to Freddie Mac for counseling services provided by a national counseling agency without charge to the Servicer. To refer a delinquent Borrower for counseling services provided by an agency, the Servicer must complete the “Counseling Agency-Servicer Referral” template in accordance with the instructions provided in the template and send the referral via secure e-mail to Freddie Mac at [email protected]. The template is accessible at https://sf.freddiemac.com/docs/xls/factsheet/counseling_servicer_referral.xls. The template contains instructions for carrying out referrals to the agencies and for identifying Mortgages that are ineligible for referral. After Freddie Mac receives the referral, Freddie Mac and the agency will contact the Borrower to offer counseling services to the Borrower. For more information about the network of national counseling agencies, Servicers should visit the My Home by Freddie Mac website at https://myhome.freddiemac.com/resources/housing-help-centers. If a Servicer relies on a counseling agency, it must be fully aware of the status or outcome of all counseling efforts the counseling agency undertakes with a specific Borrower, including: ■ Initial contact with delinquent Borrower. If the Borrower is experiencing a Delinquency, the Servicer must: ❑ Send a letter advising the Borrower of the availability of free counseling ❑ Contact the delinquent Borrower to determine the Borrower’s current financial situation and the reason for the Delinquency ■ Counseling process and actions. The counseling must include the following: ❑ Analyzing the Borrower’s financial situation and developing a plan of action for solving the Delinquency, which in most cases will be a budget worksheet or workout plan giving priority to the Mortgage payment ❑ Developing a budget and debt repayment plan enabling the Borrower to meet his or her financial obligations ❑ Reviewing the budget worksheet or workout plan with the Borrower and the Servicer, if applicable, so a decision can be made on how to proceed ■ In addition to minimum collection efforts set forth in this section, the Servicer must offer Early Delinquency Counseling no later than the 30th day after the Due Date and schedule or conduct the initial counseling session with the Borrower no later than the 45th day after the Due Date ■ If the Servicer or a third-party non-profit homeownership counseling agency chosen by the Servicer provides the counseling, the Servicer must include in the Mortgage file: ❑ A copy of the “Welcome Letter” as described in Section 9102.4(c)(i) ❑ The date(s) that counseling was offered ❑ The Borrower’s response(s) ❑ The name of the counseling agency providing the counseling (if not the Servicer) ❑ A brief summary of the results of the counseling ■ If the Servicer utilizes a HUD-approved national counseling agency specified by Freddie Mac to provide the counseling, as outlined above, the Servicer must include in the Mortgage file: ❑ A copy of the “Welcome Letter” as described in Section 9102.4(c)(i) ❑ The results of the counseling outreach as provided by Freddie Mac or the specified HUD national counseling agency, as applicable ■ If the Mortgage is included in a Transfer of Servicing before the end of the one-year period during which Early Delinquency Counseling is required, the transferee Servicer must be informed of the requirement and must be able to provide the required counseling or make arrangements for a counseling agency, as necessary (iii)NextJob re-employment services Increasing homeownership opportunities in underserved markets across the nation, including in rural and high-needs areas, is a key component of Freddie Mac’s Duty to Serve plan. High-needs areas include: ■ Middle Appalachia ■ The lower Mississippi Delta ■ Colonias ■ Other tracts located in areas subject to persistent poverty As part of the Duty to Serve plan, Freddie Mac is providing an opportunity for distressed Borrowers with a Home Possible Mortgage who reside in a high-needs area to receive reemployment services through NextJob. NextJob is a re-employment services company that assists Borrowers with job search skills and training to increase the Borrower’s likelihood of re-employment after the loss of a job, reduced hours or other employment challenges that threaten the Borrower’s ability to make timely mortgage payments. NextJob will contact the Borrower and offer re-employment services, which include: ■ One-on-one job coaching ■ Access to “Job Talk” webinars, and ■ Access to NextJob’s proprietary online job search training program Servicers are encouraged to refer Borrowers with Home Possible Mortgages in Duty to Serve high-needs areas (refer to Exhibit 40, Duty to Serve High-Needs Areas) who have suffered a loss of income due to unemployment or underemployment to Freddie Mac for referral to NextJob. The Borrower qualifications appear in the table below: NextJob re-employment services eligibility requirements Eligibility Eligibility requirements Borrower eligibility The Borrower must have: ■ Suffered a loss of income due to unemployment or underemployment, and ■ Requested loss mitigation assistance from the Servicer Mortgage eligibility The Mortgage must be: ■ Located in a designated Duty to Serve high-needs area listed in Exhibit 40 ■ A Home Possible Mortgage Eligibility exclusions The following Borrowers are not eligible for NextJob re-employment services: ■ Borrowers who are 12 months or more delinquent at the time of Servicer evaluation ■ Borrowers in active repayment plans ■ Borrowers in active modification Trial Period Plans ■ Borrowers approved for short sales or deeds-in-lieu of foreclosure ■ Borrowers with Mortgages: ❑ Subject to active non-routine litigation ❑ Subject to active bankruptcy proceedings ❑ That are FHA, VA or RHS insured ❑ With a foreclosure sale scheduled within the next 60 days, or NextJob re-employment services eligibility requirements ❑ That have been referred to foreclosure if the parties are in mediation If a Borrower meets the eligibility criteria above, Servicers participating in the NextJob program must provide the following information to Freddie Mac on a Microsoft Excel® spreadsheet for each Borrower the Servicer is referring, in the format provided in Exhibit 41, NextJob Referral Template for Borrowers with Home Possible Mortgages, which includes the following information: ■ Freddie Mac loan number ■ Borrower name ■ Borrower phone number ■ Borrower State of residence, and ■ Servicer contact name and e-mail address The Servicer must send the Excel spreadsheet to [email protected] up to twice per month only on the 15th or 30th day of the month. Servicers with no eligible Borrowers for a particular month are not required to make a submission. Three to six Business Days after receiving the submission, Freddie Mac will e-mail the Servicer a list of Borrowers who were referred to NextJob. NextJob will contact Borrowers by phone and work with them to complete the Homeowner Re-employment Registration and Waiver Agreement to initiate the reemployment services. NextJob will attempt to contact the Borrowers for 20 days. NextJob will provide job skills services and ask the Borrower to complete a survey at the end of the skills training. Freddie Mac will e-mail the Servicer monthly updates in a report entitled “Disposition of NextJob Referrals.”

(d) Investment Property and rental income during Delinquency If satisfactory arrangements for repayment of the Delinquency have not been made, the Servicer must request that the Borrower consent to the appointment of a real estate agent or other agent to collect rents, maintain the Mortgaged Premises and make payments to the Servicer. If such arrangements are not made, the Servicer must determine what means are available to obtain the rental income and submit a recommendation to Freddie Mac (see Directory 5).

■ All collection efforts ■ Minimum collection efforts ■ Special Servicing, Early Delinquency Counseling and NextJob® re-employment services ■ Investment Property and rental income during Delinquency ■ Third-party Resolution Assistance

(a) All collection efforts The Servicer must treat each Delinquency individually by varying the collection techniques to fit the individual circumstances. The Servicer must avoid establishing a fixed routine, which is particularly ineffective when dealing with chronically delinquent Borrowers. All collection efforts must be based on the extent of the Delinquency and the Servicer’s knowledge of the following factors: ■ Borrower’s prior payment history ■ Borrower’s credit history ■ Borrower’s employment situation ■ Borrower’s reason for default ■ Borrower’s willingness and ability to repay ■ Borrower is deceased or the property is included as part of the Borrower’s estate ■ Mortgaged Premises’ condition ■ Mortgaged Premises’ occupancy status If there is a known potential risk of loss or ownership to Freddie Mac, the Borrower must be referred for loss mitigation immediately. Servicers should encourage Borrowers to set up Automated Clearing House (ACH) payment arrangements. If a Borrower agreed to have his or her monthly payments automatically withdrawn from a bank account, the Servicer must ensure that the correct monthly payment is withdrawn (especially after an Escrow analysis has taken place) and processed timely. If the ACH payment cannot be processed on the specified date the Borrower has agreed to, the Servicer must begin efforts to contact the Borrower within 48 hours to determine the reason for the missed payment.

(b) Minimum collection efforts The Servicer must, at a minimum: ■ Be readily available to the Borrower to offer financial counseling and advice on curing the Delinquency and explaining alternatives to foreclosure ■ Make personal contact with the Borrower as early and often as necessary to promptly cure the Delinquency. (Mortgages in Bankruptcy or litigation may be excluded if necessary under applicable law, rules of professional responsibility or court rules.) Servicers are authorized to use alternative outreach methods to contact the Borrower as permitted by applicable law including, but not limited to, e-mail, text messaging or voice response unit technology. ■ Continue to contact the Borrower if satisfactory arrangements have not been made to cure the Delinquency or until the Servicer determines foreclosure is appropriate ■ Issue the breach letter (may also be referred to as the “notice of acceleration” or “demand letter”) for all Mortgages no later than the 75th day of Delinquency. If State law requires the breach letter (or any other pre-breach letter) to be sent prior to the 75th day of Delinquency in order to be able to refer the Mortgage to foreclosure by the 120th day of Delinquency (i.e., 150 days after the DDLPI), the Servicer must send the breach letter on such earlier date. If the Servicer determines the property is vacant or abandoned pursuant to Section 9202.3(c)(iii), then the Servicer must: ❑ Issue a breach letter within 10 days of the determination, provided the Mortgage is greater than 30 days delinquent; and ❑ Refer the Mortgage to foreclosure after expiration of the breach letter, unless the Servicer establishes quality right party contact with the Borrower to resolve the Delinquency. Regardless of whether quality right party contact is achieved, the Mortgage must be referred to foreclosure no later than the 120th day of Delinquency unless one of the exceptions to postpone foreclosure referral described in Sections 9301.2(c) and 9301.2(d) applies. ■ Contact the lessor for leasehold Mortgages and any lender with a prior lien on the fee simple landowner/lessor’s fee simple interest ■ Continue skip trace efforts until all reasonable sources have been attempted or contact numbers and addresses have been verified Servicers that maintain a call center must meet minimum call center performance standards as set forth in Section 9201.5. The following table lists the minimum collection efforts that must be made in an attempt to bring a delinquent Mortgage current. Note: If the day a Servicer is required to call a Borrower is not a Business Day and the Servicer is not open on such day to conduct loss mitigation and collection activities, the Servicer may call the Borrower on the next Business Day. Minimum collection efforts Days after Due Date Action required 19 Send late notices/reminder letters to delinquent Borrowers no later than the 20th day of the month (19th day of Delinquency). Note: Servicers must not send a late notice/reminder letter to a Borrower during an active forbearance plan term. This applies without regard to whether the Borrower’s monthly payment is reduced or suspended during the forbearance plan term. Additionally, this applies to forbearance plans for Borrowers with any eligible hardship type. Servicers must report the Payment Reminder Notice Sent default related reporting event in accordance with Section 9102.6 and Exhibit 82, Default Reporting Dataset Guidelines, each time a payment reminder notice is sent. 36 Initiate contact with each delinquent Borrower as early in the delinquency cycle as possible to secure a payment or payment arrangement but no later than the 36th day after the Due Date of an unpaid monthly installment, unless ACH payment arrangements or other arrangements to cure the Delinquency have been established. The Servicer may tailor its contact attempts appropriately based on the risk characteristics of the Mortgage, Minimum collection efforts Days after Due Date Action required each Borrower’s level of Delinquency and previous payment habits and the minimum contact requirements set forth in this Section 9102.4. Borrower contact must continue at least every seventh day at varying times throughout the day until the earlier of the 210th day after the Due Date of an unpaid monthly installment or quality right party contact is achieved and: ■ The Servicer determines that the Borrower does not want to pursue an alternative to foreclosure or the Delinquency is cured ■ The Servicer achieves quality right party contact and has obtained from the Borrower a promise to pay the delinquent amount by a specified date (not to exceed 30 days) ■ A complete Borrower Response Package is received in accordance with Section 9102.5(d); or ■ The Borrower enters into a relief or workout option with the Servicer Servicers must report the following to Freddie Mac: ■ Right Party Contact default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time successful right party contact is established ■ Quality Right Party Contact default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time successful quality right party contact is established ■ Unsuccessful Contact Attempt default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time an attempt is made to reach a delinquent Borrower, but the Servicer is unable to achieve right party contact or quality right party contact ■ Complete Borrower Response Package Received default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time a complete Borrower Response Package is received 45 If a Servicer has not achieved quality right party contact and a resolution to the Delinquency, the Servicer must send at least one Borrower Solicitation Package to the delinquent Borrower no later than the 45th day after the Due Date of an unpaid monthly installment. Minimum collection efforts Days after Due Date Action required If a Servicer has achieved quality right party contact and has obtained from the Borrower a resolution to the Delinquency, the Servicer is not required to send the Borrower Solicitation Package. However, in such instance, the Servicer must comply with any early intervention notice that may be required under applicable law. If the Borrower fails to perform under the conditions of a relief or workout option, the Servicer must resume collection efforts, including sending the Borrower Solicitation Package. Generally, the Borrower Solicitation Package must include a Borrower Solicitation Letter (see Exhibit 1145, Freddie Mac Borrower Solicitation Letter), Form 710, Mortgage Assistance Application, frequently asked questions (FAQs) and foreclosure rescue scam information. However, a Servicer may choose to send only the Borrower Solicitation Letter and elect to send Form 710, FAQs and foreclosure rescue scam information upon establishing quality right party contact. In addition, the Servicer may provide the FAQs and foreclosure rescue scam information on its website and provide a link to that information in the Borrower Solicitation Letter. See also Section 9102.5(d) for specific information on what must be included in the solicitation to the Borrower. Note: When sending the Borrower Solicitation Package, Servicers are authorized to edit Form 710, if permitted by applicable law, to exclude references to Internal Revenue Service Form 4506-C; or, to the extent required by applicable law, to indicate that such form may be required to complete the application and the circumstances when such form must be obtained or processed in accordance with Section 9102.5(c)(ii). Servicers must report the Solicitation Sent default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time a Borrower Solicitation Package is sent. 60-75 Send the Freddie Mac Flex Modification® Solicitation Cover Letter and Freddie Mac Flex Modification Trial Period Plan Solicitation Offer – Not Based on an Evaluation of a Borrower Response Package as set forth in Section 9102.5 to Borrowers eligible for a streamlined offer for a Freddie Mac Flex Modification in accordance with Section 9206.1(c). Send 60-75 days after the Due Date of an unpaid monthly installment for an eligible Borrower with a Step-Rate Mortgage. Minimum collection efforts Days after Due Date Action required Servicers must continue to make efforts to complete an incomplete Borrower Response Package to the extent required by applicable law and regulations. Servicers must report the Solicitation Sent default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time a Freddie Mac Flex Modification® Solicitation Cover Letter and Freddie Mac Flex Modification Trial Period Plan Solicitation Offer is sent. 75 Send the breach letter for all Mortgages, including First Lien Mortgages and modified Mortgages no later than the 75th day of Delinquency (i.e., 105 days after the DDLPI). If State law requires the breach letter (or any other pre-breach letter or notice) to be sent prior to the 75th day of Delinquency in order to be able to refer the Mortgage to foreclosure as required in Sections 9301.2(c) and 9301.2(d), the Servicer must send the breach letter on such earlier date. Servicers must report the Breach Letter Sent default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time a breach letter is sent. 90-105 Send Freddie Mac Flex Modification® Solicitation Cover Letter and Freddie Mac Flex Modification Trial Period Plan Solicitation Offer – Not Based on an Evaluation of a Borrower Response Package as set forth in Section 9102.5 to Borrowers eligible for a streamlined offer for a Freddie Mac Flex Modification in accordance with Section 9206.1(c). Send 90-105 days after the Due Date of an unpaid monthly installment for all other eligible Borrowers who did not receive a solicitation between day 60 and 75 of Delinquency (i.e., certain Borrowers with Step-Rate Mortgages). Servicers must report the Solicitation Sent default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time a Freddie Mac Flex Modification Solicitation Cover Letter and Freddie Mac Flex Modification Trial Period Plan Solicitation Offer is sent. Servicers must order the initial property inspection in accordance with Section 9202.3(c). Minimum collection efforts Days after Due Date Action required 105 and greater Within 15 days prior to foreclosure referral, the Servicer must review the Mortgage file to ensure that: ■ The Servicer made every attempt to achieve quality right party contact in accordance with Section 9102.3, ■ The breach letter has been issued and expired, ■ At least one Borrower Solicitation Package or Borrower Solicitation Letter has been sent by the 45th day after the Due Date of an unpaid monthly installment and the response period has expired without an affirmative Borrower response, and ■ There is neither an approved payment arrangement nor an alternative to foreclosure offer pending for which the Borrower response period has not expired ■ The Quality Right Party Contact, Solicitation Sent and Breach Letter Sent default related reporting events have been submitted to Freddie Mac in accordance with Section 9102.6 and Exhibit 82 120 Refer all Mortgages secured by properties other than Primary Residences and Mortgages secured by Primary Residences when permitted by applicable law to foreclose, including First Lien Mortgages and modified Mortgages with expired breach letters to foreclosure no later than the 120th day of Delinquency (150 days after the DDLPI) unless one of the exceptions in Sections 9301.2(c) and 9301.2(d) applies. Servicers must report the Referred to Foreclosure default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time a Mortgage is referred to foreclosure. 121 and greater (or earlier if referral to foreclosure occurs prior to day 120) Refer all Mortgages secured by Primary Residences to foreclosure after expiration of the breach letter, but no earlier than 151 days from the DDLPI (121st day of Delinquency). Note: Refer to Sections 9301.2(c) and 9301.2(d) for additional requirements related to foreclosure referral. Servicers must report the Referred to Foreclosure default related reporting event in accordance with Section 9102.6 and Exhibit 82 each time a Mortgage is referred to foreclosure. Minimum collection efforts Days after Due Date Action required 211 After the 210th day after the Due Date of an unpaid monthly installment, the Servicer has discretion on the continuation and frequency of contact attempts with a delinquent Borrower. However, the Servicer must discontinue all contact attempts 60 days prior to a foreclosure sale date for a judicial foreclosure or 30 days prior to a foreclosure sale date for a nonjudicial foreclosure, unless the Servicer is required to continue contact attempts by applicable law. Servicers may use their own methodology or a tool that uses statistical models to predict worsening Delinquency and use the results of the tool to tailor its collection efforts (“Collection and Loss Mitigation Tool”) to determine when contact attempts should begin. Regardless of the methodology or tool employed, Servicers must comply with the minimum collection time frames in this section even if a Collection and Loss Mitigation Tool is used, including initiating contact attempts no later than 36 days after the Due Date of an unpaid monthly installment. Servicers using a Collection and Loss Mitigation Tool when managing contact attempts must make model specifications and code available to Freddie Mac upon request. Servicers must conduct periodic reviews to ensure the effectiveness of the Collection and Loss Mitigation Tool, including compliance with applicable laws, such as anti-discriminatory laws. Freddie Mac reserves the right to require a Servicer to discontinue the use of a Collection and Loss Mitigation Tool for Freddie Mac Mortgages.

(c) Special Servicing, Early Delinquency Counseling and NextJob® re-employment services The requirements for special Servicing, Early Delinquency Counseling and NextJob® reemployment services, as described in this section, apply to Freddie Mac Home Possible® Mortgages (see Chapter 4501). (i) Special Servicing — Welcome Letter Servicers must send the Borrower a letter, shortly after closing and before the first Mortgage payment is due, stressing the importance of making timely payments and advising the Borrower to contact the Servicer if he or she experiences any financial problems. The letter may be incorporated into the welcome letter sent to Borrowers after closing. The letter must include the following: ■ Instructions on how to contact the Servicer if the Borrower is having difficulty making the Mortgage payment on time ■ The Servicer’s business hours ■ A toll-free telephone number to reach the Servicer (ii) Early Delinquency Counseling The following provisions apply to Early Delinquency Counseling: ■ Early Delinquency Counseling is counseling provided to a delinquent Borrower by a nonprofit third-party homeownership-counseling agency or an eligible Servicer that involves identifying the reason(s) a Borrower did not make a Mortgage payment on time and working with the Borrower to resolve any financial problems so that future Mortgage payments can be made on a timely basis. The counseling includes a personal and interactive relationship with the Borrower that deals with money management, budgeting and debt management counseling ■ Servicers must offer Early Delinquency Counseling, including household budget management counseling, at no charge to delinquent Borrowers for each Delinquency that occurs during the first year following the Note Date. In addition, if at any time during the life of the Mortgage the Borrower is having difficulty making Mortgage payments, the Servicer should advise the Borrower to speak with the Servicer or contact a counseling agency for further assistance. ■ The Servicer must provide counseling in accordance with at least one of the following options: ❑ A nonprofit third-party homeownership counseling agency ❑ A Servicer. The Servicer may conduct the counseling provided the Servicer has policies and procedures in place to offer the same kind of comprehensive counseling, budgeting and advising capabilities as a counseling agency. ❑ A HUD-approved national counseling agency specified by Freddie Mac. The Servicer may use this option to refer delinquent Borrowers with Home Possible Mortgages to Freddie Mac for counseling services provided by a national counseling agency without charge to the Servicer. To refer a delinquent Borrower for counseling services provided by an agency, the Servicer must complete the “Counseling Agency-Servicer Referral” template in accordance with the instructions provided in the template and send the referral via secure e-mail to Freddie Mac at [email protected]. The template is accessible at https://sf.freddiemac.com/docs/xls/factsheet/counseling_servicer_referral.xls. The template contains instructions for carrying out referrals to the agencies and for identifying Mortgages that are ineligible for referral. After Freddie Mac receives the referral, Freddie Mac and the agency will contact the Borrower to offer counseling services to the Borrower. For more information about the network of national counseling agencies, Servicers should visit the My Home by Freddie Mac website at https://myhome.freddiemac.com/resources/housing-help-centers. If a Servicer relies on a counseling agency, it must be fully aware of the status or outcome of all counseling efforts the counseling agency undertakes with a specific Borrower, including: ■ Initial contact with delinquent Borrower. If the Borrower is experiencing a Delinquency, the Servicer must: ❑ Send a letter advising the Borrower of the availability of free counseling ❑ Contact the delinquent Borrower to determine the Borrower’s current financial situation and the reason for the Delinquency ■ Counseling process and actions. The counseling must include the following: ❑ Analyzing the Borrower’s financial situation and developing a plan of action for solving the Delinquency, which in most cases will be a budget worksheet or workout plan giving priority to the Mortgage payment ❑ Developing a budget and debt repayment plan enabling the Borrower to meet his or her financial obligations ❑ Reviewing the budget worksheet or workout plan with the Borrower and the Servicer, if applicable, so a decision can be made on how to proceed ■ In addition to minimum collection efforts set forth in this section, the Servicer must offer Early Delinquency Counseling no later than the 30th day after the Due Date and schedule or conduct the initial counseling session with the Borrower no later than the 45th day after the Due Date ■ If the Servicer or a third-party non-profit homeownership counseling agency chosen by the Servicer provides the counseling, the Servicer must include in the Mortgage file: ❑ A copy of the “Welcome Letter” as described in Section 9102.4(c)(i) ❑ The date(s) that counseling was offered ❑ The Borrower’s response(s) ❑ The name of the counseling agency providing the counseling (if not the Servicer) ❑ A brief summary of the results of the counseling ■ If the Servicer utilizes a HUD-approved national counseling agency specified by Freddie Mac to provide the counseling, as outlined above, the Servicer must include in the Mortgage file: ❑ A copy of the “Welcome Letter” as described in Section 9102.4(c)(i) ❑ The results of the counseling outreach as provided by Freddie Mac or the specified HUD national counseling agency, as applicable ■ If the Mortgage is included in a Transfer of Servicing before the end of the one-year period during which Early Delinquency Counseling is required, the transferee Servicer must be informed of the requirement and must be able to provide the required counseling or make arrangements for a counseling agency, as necessary (iii)NextJob re-employment services Increasing homeownership opportunities in underserved markets across the nation, including in rural and high-needs areas, is a key component of Freddie Mac’s Duty to Serve plan. High-needs areas include: ■ Middle Appalachia ■ The lower Mississippi Delta ■ Colonias ■ Other tracts located in areas subject to persistent poverty As part of the Duty to Serve plan, Freddie Mac is providing an opportunity for distressed Borrowers with a Home Possible Mortgage who reside in a high-needs area to receive reemployment services through NextJob. NextJob is a re-employment services company that assists Borrowers with job search skills and training to increase the Borrower’s likelihood of re-employment after the loss of a job, reduced hours or other employment challenges that threaten the Borrower’s ability to make timely mortgage payments. NextJob will contact the Borrower and offer re-employment services, which include: ■ One-on-one job coaching ■ Access to “Job Talk” webinars, and ■ Access to NextJob’s proprietary online job search training program Servicers are encouraged to refer Borrowers with Home Possible Mortgages in Duty to Serve high-needs areas (refer to Exhibit 40, Duty to Serve High-Needs Areas) who have suffered a loss of income due to unemployment or underemployment to Freddie Mac for referral to NextJob. The Borrower qualifications appear in the table below: NextJob re-employment services eligibility requirements Eligibility Eligibility requirements Borrower eligibility The Borrower must have: ■ Suffered a loss of income due to unemployment or underemployment, and ■ Requested loss mitigation assistance from the Servicer Mortgage eligibility The Mortgage must be: ■ Located in a designated Duty to Serve high-needs area listed in Exhibit 40 ■ A Home Possible Mortgage Eligibility exclusions The following Borrowers are not eligible for NextJob re-employment services: ■ Borrowers who are 12 months or more delinquent at the time of Servicer evaluation ■ Borrowers in active repayment plans ■ Borrowers in active modification Trial Period Plans ■ Borrowers approved for short sales or deeds-in-lieu of foreclosure ■ Borrowers with Mortgages: ❑ Subject to active non-routine litigation ❑ Subject to active bankruptcy proceedings ❑ That are FHA, VA or RHS insured ❑ With a foreclosure sale scheduled within the next 60 days, or ❑ That have been referred to foreclosure if the parties are in mediation If a Borrower meets the eligibility criteria above, Servicers participating in the NextJob program must provide the following information to Freddie Mac on a Microsoft Excel® spreadsheet for each Borrower the Servicer is referring, in the format provided in Exhibit 41, NextJob Referral Template for Borrowers with Home Possible Mortgages, which includes the following information: ■ Freddie Mac loan number ■ Borrower name ■ Borrower phone number ■ Borrower State of residence, and ■ Servicer contact name and e-mail address The Servicer must send the Excel spreadsheet to [email protected] up to twice per month only on the 15th or 30th day of the month. Servicers with no eligible Borrowers for a particular month are not required to make a submission. Three to six Business Days after receiving the submission, Freddie Mac will e-mail the Servicer a list of Borrowers who were referred to NextJob. NextJob will contact Borrowers by phone and work with them to complete the Homeowner Re-employment Registration and Waiver Agreement to initiate the reemployment services. NextJob will attempt to contact the Borrowers for 20 days. NextJob will provide job skills services and ask the Borrower to complete a survey at the end of the skills training. Freddie Mac will e-mail the Servicer monthly updates in a report entitled “Disposition of NextJob Referrals.”

(d) Investment Property and rental income during Delinquency If satisfactory arrangements for repayment of the Delinquency have not been made, the Servicer must request that the Borrower consent to the appointment of a real estate agent or other agent to collect rents, maintain the Mortgaged Premises and make payments to the Servicer. If such arrangements are not made, the Servicer must determine what means are available to obtain the rental income and submit a recommendation to Freddie Mac (see Directory 5).

(e) Third-party Resolution Assistance Third-party resolution assistance refers to counseling, facilitation or other assistance by a third party, such as a HUD counseling agency, that assists the Servicer and Borrower in working toward resolution of the Delinquency. Servicers must report the Third-party Resolution Assistance default related reporting event in accordance with Section 9102.6 and Exhibit 82 when such assistance may impact the timing of timeline for standard default actions.