Easier Fannie and Freddie mortgage modifications ahead?

Mortgage loan modifications through Fannie Mae and Freddie Mac could get easier beginning July 1, under a simplified process that eliminates the requirement that homeowners to first provide financial and hardship documentation.

Under the new Streamlined Modification Initiative, borrowers who are at least 90 days delinquent on their mortgage will automatically be eligible for a modification, which will be made permanent after they make three on-time payments as part of a trial period, the Federal Housing Finance Agency (FHFA) announced this week. The program will expire Aug. 1, 2015.

“The Streamlined Modification Initiative adds to the suite of home retention tools offered byFannie Mae and Freddie Mac,” said FHFA Acting Director Edward J. DeMarco in a statement. “This new option gives delinquent borrowers another path to avoid foreclosure. We will still encourage such borrowers to provide documentation to support other modification options that would likely result in additional borrower savings.”

Read the full news release and FAQs from FHFA.

This entry was posted in Consumer Information, Uncategorized by Stephanie Sievers. Bookmark the permalink.

About Stephanie Sievers

Stephanie Sievers is Senior Editor for the Illinois Association of REALTORS®. She serves as Senior Editor for IAR publications including the Illinois REALTOR® magazine and all other IAR publications. She is responsible for developing content for the Illinois REALTOR® Weekly Connection e-newsletter, coordinates the IAR Twitter account content at ILREALTOR and plans and develops content for videos. She assists in developing and writing content for the IAR blog. She also is involved in researching and drafting news releases and coordinates the news media distribution database and newsclips reports for the Association. She also assists in IAR spokesperson training seminars and is involved in development of association briefing materials on issues. She assists with the housing statistics program and reports.