OfflineThe Federal Housing Finance Agency has launched a new loan modification program for Freddie Mac and Fannie Mae loans. It is called the Streamlined Modification Initiative. This program is placed in the hands of the lenders allowing them to be proactive in helping borrowers obtain mortgage relief.
The program begins June 1, 2013 and will remain active until August 2015. It is available for borrowers on Freddie and Fannie loans who are 90 days or more delinquent on their mortgage.
Borrowers will not have to submit proof of hardship or financial documentation. There is not an extensive underwriting to qualify. Plus, lenders can initiate the loan modification. This means that delinquent borrowers could receive correspondence from their bank saying they want to help their client rather than foreclose on them. What a nice change from HAMP and HARP!
References:
http://www.fhfa.gov/
http://www.fhfa.gov/webfiles/25068/StreamlinedModInit32713Final.pdf
no verification of Job or Income required, no Credit Score verification, as long as there is a 3-month payment history and no more than 1 late payment in the last 12 months...
link to article explaining in detail below
http://themortgagereports.com/1604/fha-streamline-refinance-mip-refund
Valerie
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Thanks for adding some additional facts to the post. It appears that FHA may have come up with a loan modification program that is pro-active and not bogged down in paperwork and multiple application approvals.
Just watch out for FHA's new mortgage insurance premium. Rates have increased and after June 1, 2013 they are a permanent part of the payment regardless of the amount of equity in the property.
Interesting articles.
Thanks,
Sam