Freddie Mac Gives Immediate Green Light to Streamlined Modifications

Freddie Mac has opened applicationsrnfor its new Streamlined Modification program, making it available to allrneligible borrowers immediately, six weeks earlier than originally planned. The company said the early implementation wasrnmade to expedite financial relief for potentially thousands of distressedrnfamilies.</p

Under the program, originally set tornbegin on July 1, servicers are required to send modification offers tornborrowers who are at least 90 days, but no more than 720 days, delinquent onrnmortgages that are at least 12 months old and meet other eligibility criteria. Eligiblernborrowers are not required to submit documentation and the modification becomesrnpermanent if the borrower makes on-time payments during the three month trialrnperiod. </p

Terms of the streamlinedrnmodification are the same as Freddie Mac’s standard modification which allowsrnservicers to reduce monthly payments by reducing interest rates, extendingrnterms up to 40 years, and in some instances granting principal forbearance.    </p

In a press release announcing the daternchange Freddie Mac said servicers can extend offers for the program to eligiblernborrowers as soon as they are ready.  Thernchange was made, Freddie Mac said, because it is “focused on adding momentum tornthe housing recovery by giving distressed borrowers more options to avoidrnforeclosure.” </p

More information about the StreamlinedrnModification can be found at FreddieMac.com

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