In late March, HousingWire reported the Federal Housing Finance Agency would expand its suite of mortgage modification tools for Fannie Mae and Freddie Mac servicers.
As of July 1st, the Streamlined Modification Initiative is in effect, in order to encourage servicers to handle delinquencies earlier, minimizing losses to the GSEs and taxpayers, while cutting back some of the red tape that slows down the traditional approval process.
Borrowers who are 90-days late on their Fannie/Freddie first mortgage will receive a 4% fixed-rate payment (as long as it is lower than the current payment and the LTV is above 80%).
All eligible borrowers must make three on-time trial payments, the FHFA said. Once those payments are made, the loan modification takes permanent effect.
No documentation is required. The program expires Aug. 1, 2015.
The Federal Housing Administration has quietly extended its special forbearance program for unemployed homeowners who continue to make partial payments on their FHA-insured mortgages.
The special forbearance program was due to expire in August. But FHA issued mortgage letter 2013-23 to extend it indefinitely.
Special forbearances for unemployed borrowers are “hereby extended until amended, superseded or rescinded,” the mortgagee letter says.
The special program is designed to give homeowners a chance to stay in their homes until they land a new job and hopefully resume making their regular mortgage payments.
The forbearance is terminated if the borrower stops making partial payments or the servicer learns the borrower is no longer seeking employment.
Initially, FHA required servicers to verify the borrower had a good payment record and stable employment history to qualify.
But the agency dropped that verification requirement two years ago.
http://www.nationalmortgagenews.com/dailybriefing/FHA-Extends-Special-Forbearance-Program-1037306-1.html?ET=nationalmortgage:e4344:464595a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=NMN_Daily_Briefing_070213