Introducing Streamlined Modification
According to a recent Fannie Mae survey, during the application and modification evaluation process one in three delinquent borrowers have difficulty providing income documentation (like paycheck stubs). Often, it’s because some of their income comes from non-traditional sources, such as from tips, side jobs, or subletting.
Starting July 1, mortgage companies can offer eligible borrowers a more affordable payment without requiring them to provide income documentation using Fannie Mae’s Streamlined Modification product.
“The documentation process is complex for typical homeowners who are already going through a stressful time in their lives,” explains Bill Cleary, vice president of Credit Portfolio Strategy at Fannie Mae.
In fact, while the majority of borrowers surveyed by Fannie Mae believed they had provided all necessary documents required as part of their modification application, in reality, only 6 percent met the existing requirements for a completed package, he says. With a Streamlined Modification, more borrowers will benefit from a simple, straightforward process to modify their existing loans, he notes.
To find out more, contact your mortgage company or if your loan is owned by Fannie Mae, contact a Fannie Mae Mortgage Help Center. The Streamlined Modification program will expire December 31, 2015.