A forbearance plan is typically an agreement by the servicer to postpone, reduce, or suspend payments due on a loan for a specified period of time. These agreements are usually intended to provide the borrower time to resolve a short-term financial impairment. Interest may continue to accrue at the contractual note rate during the forbearance period, in which case it remains the borrower's responsibility. To be covered under category 4 in the Framework, the forbearance plan offered by the servicer must be documented and include specific payment terms for a specified period of time longer than one.
