July 17, 2024

FANNIE MAE MORTGAGESFannie Mae recently announced the Streamlined Modification Program (SMP) is now available to Fannie Mae servicers and borrowers as an option to help prevent foreclosures. The SMP enables services to change the terms of a loan to reduce a borrower's monthly mortgage payment, including taxes, insurance, and HOA dues, to an amount equal to 38 percent of the borrower's gross monthly income.

The changes in terms may include one or more of the following: Adding the accrued interest, escrow advances and costs to the principal balance of the loan, if allowed by state law; extending the length of the mortgage loan as appropriate; reducing the mortgage loan interest rate; forbearing on a portion of the principal, which will require the borrower to make a balloon payment when the loan matures, is paid off, or is refinanced.


Servicers will be sending modification solicitation letters beginning this month to borrowers believed to be eligible for the program.                                                                                              
La Jolla bank owned real estate

6 thoughts on “FANNIE MAE STREAMLINES MORTGAGE MODIFICATION PROGRAMS

  1. Owning a home is not the be all and end all. In fact, for a fair number of people renting is a much better choice. A house can be an albatross that is hard to dispose of. It certainly limits your mobility. The government is making a mistake trying to maximize home ownership with it’s easy money policies.
    San Diego Legal Advice

  2. The most common mortgage modifications are listed below:

    lowering the mortgage interest rate
    reducing the mortgage principal balance
    fixing adjustable interest rates within the mortgage
    increasing the loan term throughout the mortgage
    forgiveness of payment defaults and fees
    or any combination of the above

  3. I have a Fannie Mae Loan, I am trying to process a Loan Modfication. I have asked for a copy of the original Truth and Lending statement!. Fannie Mae/Bank of America cannot provide , in additiona they cannot provide a copy of the “Three Day Right of Recession” that I signed either. I have a letter stating those facts.

    I have written back to Bank of America and advised them that these documents are required by law. Any suggestions re: Loan Mod or Forensic Audit?

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