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12.2.3.3 Late Charge Suspension

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Freddie Mac’s Seller/Servicer Guide mandates the suspension of the assessment of late charges by servicers if borrowers are on a forbearance plan or paying as agreed on a repayment plan.138 The Freddie Mac Disaster Relief Reference Guide reiterates that late charges may not be assessed while the borrower is on a forbearance plan or paying as agreed on a repayment plan, but it provides that late charges may accrue during a trial period plan subject to the requirements of the Seller/Servicer Guide at section 9102.2. However, the Reference Guide clarifies that all accrued and unpaid late charges must be waived if the mortgage is modified and, additionally, the servicer must waive all accrued and unpaid late charges upon completion of a Disaster Payment Deferral.139

Footnotes

  • 138 Freddie Mac, Single-Family Seller/Servicer Guide, § 8404.4(d), Delinquency management activities following a disaster (“The Servicer must not assess late charges as long as the Borrower is on a forbearance plan or paying as agreed on a repayment plan.”).

  • 139 Freddie Mac, Disaster Relief Reference Guide 1 (updated Nov. 2020), available at https://sf.freddiemac.com. For a description of the Freddie Mac Disaster Payment Deferral, see § 12.3.1.6, infra.