What documentation is required for loans to continue to be eligible following the forbearance period?

The Bank expects that members will have written evidence of the repayment option(s) being provided to the borrower, and that such agreements are documented in accordance with applicable laws and regulations. Repayment options include the following:

• Reinstatement: Forborne funds fully collected at the end of the forbearance period. No signature of the borrower is required, provided there are no changes in the terms of the original note. 
• Repayment Plan: Forborne funds collected in installments to bring the loan current over a period not to exceed 12 months beyond the expiration of the forbearance period. No signature of the borrower is required, provided there are no changes in the terms of the original note.
• Payment Deferral: Forborne funds collected at the end of the loan term, with no other change in terms. Evidence of borrower acknowledgement and acceptance is required, and the agreement should be delivered to the Bank’s custodian where loan delivery is required. No signature of the borrower is required, provided there are no changes in the terms of the original note, however, payment deferral without borrower signature will result in lower valuation of impacted loan collateral.  
• Loan Modification: A change in terms of the original note. Signatures,* electronic or or wet, are required for any agreements that provide for any of the following:
  • Adding the deferred payments to remaining note payments over a period that exceeds 12 months
  • Extending the maturity of the note 
  • Adding all or a portion of the deferred payments to the principal of the note
  • Changing the interest rate

*Please see the Adjusted Eligibility Guidelines for Pledged Collateral information for guidance when a borrower cannot provide a signature to the modification agreement.