WASHINGTON – May 15, 2013 – Freddie Mac says it’s making its new Streamlined Modification program immediately available to eligible borrowers nationwide in order to expedite financial relief for potentially thousands of distressed families. The program was to begin July 1, 2013, but the government-owned company changed the date to help victims of Hurricane Sandy.
The Streamlined Modification program makes it easier for homeowners behind in their payments to keep a house, and they don’t even need to apply. Lenders are directed to contact all borrowers that fit the program’s criteria.
Streamlined Modification details
• The nearly rolled-out program applies to the entire country. • Under the Streamlined Modification program, loan servicers must send modification offers to borrowers who are at least 90 days but no more than 720 days late on their mortgage, providing the mortgage itself is at least 12 months old. Other eligibility criteria also apply. • Eligible borrowers aren’t required to submit documentation. • The modification becomes permanent after a three-month trial period, providing the homeowner makes on-time payments. • The Streamlined Modification offers the same mortgage terms as Freddie Mac’s Standard Modification. Loan servicers can reduce monthly mortgage payments by adjusting interest rates, extend payment terms to 40 years, and, in some cases, lower the principal.
More information about the Streamlined Modification can be found on Freddie Mac’s website.
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