New modification program offers simplicity and certainty
Fannie Mae announced details last month on its new modification program, which it developed jointly with Freddie Mac at the direction of the Federal Housing Finance Agency.
Fannie Mae Flex Modification combines features of HAMP (Home Affordable Modification Program), which ended at the close of 2016, and Fannie Mae’s Standard and Streamlined Modification programs, which will conclude in October 2017. The Fannie Mae Flex Modification aims at replacing these expiring programs.
Servicers must begin evaluating borrowers for the Fannie Mae Flex Modification no later than Oct. 1, 2017, but may begin to offer the modification to eligible borrowers as early as March 2017. Once the servicer implements the program, they must offer it to all eligible borrowers.
Applying ‘Test and Learn’
The Fannie Mae Flex Modification can be applied to all mortgage loan delinquencies, including mortgage loans that are determined to be in imminent default in accordance with the Fannie Mae Servicing Guide.