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1.5.3.4 Amount Due After Forbearance When Servicer Is in Touch with the Borrower

Significant Law Change

If the servicer in touch with the borrower (known as achieving “quality right party contact”) at the end of the disaster-related forbearance period, the servicer must evaluate the borrower for the most appropriate relief or workout option to cure the unpaid payments due to a forbearance, in accordance with the evaluation hierarchy set forth in section 9201.2 of the Freddie Mac Single-Family Seller/Servicer Guide and modified by the addition of the Extend Modification.145

For borrowers who were current or fewer than thirty-one days’ delinquent at the time of the disaster and who can resume making the contractual monthly payments, the servicer must consider the borrower for an Extend Modification,146 and after that, for a Capitalization and Extension Modification for Disaster Relief (“Disaster Relief Modification”) if a reinstatement or repayment plan is not a viable option.147

If the borrower is not eligible for, or declines, an Extend Modification and a Disaster Relief Modification, and the borrower has provided a Borrower Response Package, the servicer should evaluate the borrower in accordance with the evaluation hierarchy in section 9201.2 of the guide.

If the borrower is not eligible for, or declines, an Extend Modification and a Disaster Relief Modification, and the borrower has not provided a Borrower Response Package, the servicer must evaluate the borrower for a streamlined offer for a flex modification, provided the borrower is ninety or more days’ delinquent.

Additionally, if the servicer is unable to achieve quality right party contact at the end of the disaster-related forbearance period to determine financial status and eligibility for an Extend Modification and a Disaster Relief Modification, the servicer must evaluate the borrower to determine if they are eligible for a streamlined offer for a flex modification, provided the borrower is ninety or more days’ delinquent.148

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