Say Good Bye To The Old HAMP Program And A Hello To A New Fannie Mae Program
WASHINGTON, DC – Fannie Mae and Freddie Mac announced a replacement for the HAMP program with the Flex Modification foreclosure prevention program. This program is designed to save struggling homeowners, by offering reductions on their mortgage payments, who are in a danger of payment default due to financial hardships in their life. The Flex Modification foreclosure prevention program was developed at the direction of the Federal Housing Finance Agency (FHFA) and leverages components of Fannie Mae’s (HAMP®), which is slated to end on Dec. 31, 2016, and the Fannie Mae Standard and Streamlined Modifications, which will soon expire in late 2017.
Bill Cleary, VP of Single-Family Servicing Policy, said “The Flex Modification is an adaptive program that will allow us to continue to assist struggling homeowners in a changing housing environment and simplify the process for servicers to deliver those solutions. We believe the program is flexible to adjust for regional and even local differences in housing. It provides the greatest amount of assistance to those areas in need.”
David Lowman, executive VP of Freddie Mac’s Single-Family Business added: “We’re proud to announce the Flex Modification program, a carefully considered and transparent alternative for homeowners who want to avoid foreclosure in today’s post-crisis mortgage environment. We believe it strikes the appropriate balance between borrower relief and economic responsibility.”
Features Of New Flex Modification Foreclosure Prevention Program
The FHFA said in a statement: “The new Flex Modification announced by Fannie Mae and Freddie Mac (the Enterprises) today was designed based on lessons learned from crisis-era loan modification programs to help borrowers stay in their homes and avoid foreclosures whenever possible and laid out the five important components that will result in significant savings and will provide borrowers with a sustainable modification.”
The highlights of the new program include, for instance, the Flex modification can be applied to mortgage loans and loan delinquencies, determined to be in imminent default. For eligible borrowers, the program will offer forbearance of principal to an 80% loan-to-value (LTV) ratio (additional payment relief).
For more information, please visit Fannie Mae Flex Modification , whereas, the Flex modification foreclosure prevention program announcement may be viewed at