Bulletin 2026-5: Servicing Updates

Bulletin 2026-5

Servicing

Issued 04/08/2026

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TO: Freddie Mac Servicers

SUBJECT: SERVICING UPDATES

This Guide Bulletin announces:

• Freddie Mac Flex Modification®
  • Updates to return period for modification forbearance term requirements
  • Updates to application of funds held in suspense
  • A clarification on streamlined eligibility for Freddie Mac Flex Modifications
• Bankruptcy and foreclosure legal fees
  • New expense codes for Chapter 13 bankruptcy legal services
  • Updates to requirements for foreclosures of Cooperative Share Loans
  • New expense codes for Private Selling Officers
• Information security
  • A new effective date for previously announced requirements related to organizations’ business impact analyses – May 11, 2026
  • Updated requirements for Seller/Servicers’ software and applications – July 1, 2026
• Additional Guide updates
  • Further updates as described in the Additional Guide Updates section of this Bulletin

EFFECTIVE DATE

All of the changes announced in this Bulletin are effective immediately unless otherwise noted.

FREDDIE MAC FLEX MODIFICATION

Modification agreement

We have adjusted the requirement for Servicers to provide a date by when the Borrower must sign and return an executed modification agreement. Currently, we are prescriptive in instructing the Servicer to provide 14 days from the date the Servicer sent the modification agreement for the Borrower to return the final signed modification documents. We are changing this requirement to instead permit the Servicer to provide an acceptable time frame by which the documents must be returned. Additionally, while the Servicer is required to provide a date by which the modification agreement must be signed and returned, provided the Servicer receives the executed agreement by the Modification Effective Date, the modification will be completed even if the documents are returned after the date previously communicated by the Servicer.

Application of funds held in suspense

We have updated the requirements for the application of amounts held in a suspense funds account to clarify that at the end of a Trial Period Plan, if suspense funds held per the requirements in Guide Section 9206.2(b)(ii) are in excess of the total amount of arrearages and expenses and remain unapplied, those funds must be applied to reduce the post-capitalized UPB.

Streamlined eligibility

We have clarified that for streamlined eligibility for a Freddie Mac Flex Modification, the Borrower must be 90 days delinquent as of the evaluation date, and payments received after the evaluation date do not affect Borrower eligibility even if the payment results in the Borrower becoming less than 90 days delinquent. This update aligns with the recently announced changes to Freddie Mac Flex Modification eligibility requirements for Borrowers impacted by an Eligible Disaster.

Guide impacts

Sections 9206.1 through 9206.4 have been updated to reflect these changes.

BANKRUPTCY AND FORECLOSURE LEGAL FEES

We have updated our reimbursement requirements for certain foreclosure and bankruptcy legal fees for reimbursement claims submitted in the PAID (Payments Automated Intelligent and Dynamic) System.

Bankruptcy legal services

To support the amendment to the Bankruptcy Chapter 13 Federal Rules 3002.1, which became effective in December 2025, we have created new expense codes and updated the allowable fees associated with certain existing expense codes.

The new expense codes are as follows:

• 011068 (Chapter 13 - Mid-Case Review Audit Agreed Response up to $250)
• 011069 (Chapter 13 - Mid-Case Review Audit Disagreed Response up to $675)
• 011070 (Chapter 13 - Trustee’s Notice of Disbursements Made Agreed Response up to $250)
• 011071 (Chapter 13 - Trustee’s Notice of Disbursements Made Disagreed Response up to $675)

Existing expense codes have been updated as follows:

• 011047 – Increased the reimbursement amount of the “Response to Final Cure for Agreed Response” up to $260.00
• 011048 – Increased the reimbursement amount of the “Response to final cure in dispute” up to $750

Servicers must ensure legal fees and costs are reasonable and customary for the location of the Mortgaged Premises. Expenses exceeding the limits in Guide Exhibit 57A, Approved Attorney, Foreclosure, Mediation, Postponement Fees and Title Expenses, and Exhibit 57B, Approved Bankruptcy Attorney Fees, require prior written Freddie Mac approval before the expense is incurred.

Foreclosure on Cooperative Share Loans

We have removed the requirement for Servicers to obtain Freddie Mac’s prior written approval before incurring legal expenses in connection with the foreclosure of a Cooperative Share Loan. Servicers can receive reimbursement up to $1,600 by using expense code 014005 – Foreclosure on a Cooperative Share. Please refer to Guide Chapter 8801 for additional special Servicing requirements for Cooperative Share Loans.

Private Selling Officers

We have created a new expense code for “Private Selling Officers” when a foreclosure sale is conducted by an auction service in leu of the Sheriff Sale. Servicers can be reimbursed up to $300 by using expense code 032002 – Private Selling Officers.

Note: This fee is only applicable when authorized by State law, and the Private Selling Officer must be appointed through the court.

Guide impacts

Sections 8801.2, 8801.4, 9701.3, Exhibits 57A, 57B and 74 have been updated to reflect these changes.

INFORMATION SECURITY

Freddie Mac Critical Data

Effective May 11, 2026

In Bulletin 2026-1, we defined the term “Freddie Mac Critical Data” and introduced requirements related to organizations’ business impact analyses. With this Bulletin, we are updating the effective date for these requirements from January 1, 2027 to May 11, 2026.

Guide impacts: Sections 1302.2 and 1302.3

Software and application requirements

Effective July 1, 2026

We are updating the requirements for Seller/Servicers’ software and applications. The updates include, but are not limited to, requirements related to:

• The separation of non-production, testing and production environments
• Adherence to formal and industry-recognized security standards
• Quality assurance practices
• Documentation and change management processes

Guide impact: Section 1302.2

ADDITIONAL GUIDE UPDATES

Payoff Draft Date 18 Mortgages

Effective July 1, 2026

In Bulletin 2025-14, we announced that certain Sellers were authorized to deliver Payoff Draft Date 18 Mortgages. In Bulletin 2026-4, we announced that all Mortgages delivered under Freddie Mac Guarantor and MultiLender Swap Purchase Contracts with contract accepted dates on or after July 1, 2026, will be Payoff Draft Date 18 Mortgages (indicating Mortgages delivered that are pre-populated with an “18” in the “prepayment remittance due days” data field in Loan Selling Advisor®), as described in Section 8303.1 and subject to the requirements in Sections 7101.1, 7101.2, 8303.1 and 8303.3. Except with respect to certain Sellers who were previously authorized to deliver Payoff Draft Date 18 Mortgages, Mortgages delivered under Freddie Mac Guarantor and MultiLender Swap Purchase Contracts with contract accepted dates prior to July 1, 2026 will continue to be pre-populated with a “5” in the “prepayment remittance due days” data field in Loan Selling Advisor.

Guide impact: Form 15/A/C

Alternative Collateral Deal (ACD) tool

We have updated the licensing framework to include a reference to the Alternative Collateral Deal (ACD) tool.

Guide impacts: Section 2404.2 and Exhibit 88

eBilling

Effective July 1, 2026

We will transition the technology platform used to support eBill, our electronic invoice portal. Effective July 1, 2026, eBill will be redesignated as eBilling. Servicers should refer to eBilling Online Help(opens in new window) for details on system enhancements.

Guide impacts: Sections 2201.2, 2405.1, 6303.2, 6305.3, 8303.1, 8303.5 and 9102.1

Lender-paid mortgage insurance

In an effort to simplify our approach with Seller/Servicers entering into Voluntary Partial Cancellation (VPC) of Servicing Contract Rights Agreements with Freddie Mac, lender-paid mortgage insurance payments pertaining to VPC Mortgage Loans have been removed from the closing payment structure. This adjustment is intended to facilitate smoother transactions and enhance the overall client experience.

Guide impact: Exhibit 30

System-Specific Licenses

Resolve®

We have revised Section 2404.3(e) to clarify that lender certifications and associated agency designations apply to all consumer credit data.

Guide impact: Section 2404.3

Loan Product Advisor® and Loan Quality Advisor®

We have updated the System-Specific Licenses for Loan Product Advisor and Loan Quality Advisor to specify that the Systems (as defined in Section 2401.1(b)) may use certain Consumer Credit Data in addition to Credit Reports (both as defined in Section 2402.2(b)(iv) and Section 2402.2(c)(iv), respectively). To align with these updates, we have specified in the Glossary definition of a Related Third Party that it includes a consumer reporting agency and credit reporting company.

Guide impacts: Section 2402.2 and Glossary

eNote certifications

The Bank of New York, NA, a Designated Custodian, has successfully completed its testing to participate in Freddie Mac’s eMortgage program. Lenders wishing to engage with this Designated Custodian for eNote certifications will now need to sign new Guide Form 1035DCA, Addendum to Designated Custodial Agreement: Single-Family Mortgages (Freddie Mac Form 1035DC) for Electronic Documents Related to Single-Family eMortgages, as an addendum to Form 1035DC, Designated Custodial Agreement: Single-Family Mortgages.

Guide impact: Form 1035DCA (new)

GUIDE UPDATES SPREADSHEET

For a detailed list of the Guide updates associated with this Bulletin and the topics with which they correspond, access the Bulletin 2026-5 (Servicing) Guide Updates Spreadsheet via the Download drop-down available at https://guide.freddiemac.com/app/guide/bulletin/2026-5.

CONCLUSION

If you have any questions about the changes announced in this Bulletin, please contact your Freddie Mac representative or call Customer Service at 800-FREDDIE.

Sincerely,

Mike Reynolds

Senior Vice President, Head of Servicing

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