Interesting Fannie Mae presenation I dug up

[Housebroken13]

Take a look:

http://www.dallasfed.org/news/ca/200..._hempstead.pdf

[AZOwner]

Wow, good find. saved the doc for reference!

According to this PDF from Fannie:

Clear steps to modification

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Target: 31% of gross monthly income:

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Reduce interest rate to floor of 2%

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Extend term up to 40 years

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If necessary, forbear portion of principal

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Calculate NPV

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��Borrower must complete trial period

This was THE BEST, I don't recall reading THIS is happenning:

Modification with

Second Lien Program

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Up to half of at-risk borrowers have
second lien

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Program works seamlessly with
modification

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Reduces second lien payments

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��Option to extinguish second lien

If you have a Fannie backed mortgage and don't qualify for HAMP you MUST receive a 6 month forebearance? REALLY? Is THIS happenning?

Fannie Mae tools to prevent foreclosure

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HomeSaver Forbearance™

□

Six-month forbearance for borrowers who do not qualify for
Home Affordable Modification

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New workout hierarchy

Temporary hardship

1.

Forbearance

2.

Repayment plan

3.

HomeSaver Advance™

Long-term hardship

1.

Home Affordable Modification

2.

HomeSaver Forbearance

3.

Other forbearance

4.

Modification

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5.

Pre-foreclosure or short sale

6. Deed-in-lieu