A mortgage agreement is an agreement between a mortgage lender and a payment borrower. In this agreement, a lender agrees not to exercise its legal right to a mortgage and the borrower accepts a mortgage plan that updates the borrower over a period of time. The supplier must continue to try to reach QRPC during this first 3-month leniency period. First, if the supplier proposes an agreement combining leniency and a repayment plan, the combined period must not exceed 36 months. Note: If the borrower`s hardness is due to a disaster event, the service is entitled to offer a leniency plan without reaching QRPC in accordance with the following conditions of the leniency plan. While a mortgage leniency agreement offers short-term facilities for borrowers, a credit modification contract is a permanent solution for prohibitive monthly payments. With a credit change, the lender can work with the borrower to do certain things – for example, lower the interest rate. B, switch from a variable interest rate to a fixed rate or extend the term of the loan – to reduce the borrower`s monthly payments. Agencies are constantly evolving and updating their requirements to check the FAQ for the latest requirements for indulgence requirements with Fannie Mae and Freddie Mac. If the mortgage is a second pledge, the service provider must include a provision for the automatic closing of the leniency plan when the first pawnbroker is subject to enforcement. The borrower`s monthly payment must be reduced or suspended during the leniency period.

When the service provider requires the borrower to make reduced payments, the payment must be made on the day or before the last day of the month in which it is due, unless the service finds that acceptable mitigating circumstances have resulted in a late payment. provide an initial leniency of the plan up to 6 months, and the service must attempt to contact the borrower no later than 30 days before the expiry of a leniency plan and must continue outreach testing until the QRPC is reached or the duration of the leniency plan is exceeded. The table below shows the requirements that the supplier must meet, depending on whether the CPP is met if the borrower`s emergency default is not related to a disaster event.