New streamlined fannie mae and freddie mac modification updates - no hardship docs, no income docs?

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I haven't read that before. Sounds like if you missed a payment then never made one after that then you would be excluded?
I guess I'm excluded to then as I never paid after falling behind. Unless they are referring to someone who had been on an installment plan before? Anyway my understanding is we can't request the streamlined mod it has to be offered to us. Who is your lender?
 

Viccinoel

LoanSafe Member
Jul 19, 2013
17
0
1
Its a Freddie Mac loan- M
Caliber Home Loans is the servicer

Same with me... I had tried and tried to get caught up... we were so close last spring..but then they went foreclosure. I was with chase then - started a request for modification, then they sold my loan to Caliber Home Loans. I've been trying to get a modification review with them since July. Its been a paperwork hell. They lose or request request request more and more. sigh..tiring but I'm a fighter...won't lose this battle.
Seen this and was wondering why we have never been offered this. I will have to call and ask.
 

Viccinoel

LoanSafe Member
Jul 19, 2013
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I called directly to Freddie Mac today to ask if this seemed abit lenghty to get even the first mod review. They took all my information and execalated it to a case manager who will contact Caliber to see what the issues are. Crossing my fingers this lights a fire under their butts.
 

nbtapia1

LoanSafe Member
Jun 3, 2009
165
5
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USA
New streamlined fannie mae

NEW STREAMLINED FANNIE MAE AND FREDDIE MAC MODIFICATION UPDATES - NO HARDSHIP DOCS, NO INCOME DOCS?
just came out today, i had hoped that freddie and fannie would get rid of hardship and income documentation requirements when i wrote this article back on april 11 2012 and it looks like they did just that:

From Freddie Mac today and this policy becomes effective July 1st 2013, so if you are missing April, May and June's payments, you will be eligible July 1st if you have made at least 12 consecutive on time payments since you first received your Freddie Mac loan:


The Streamlined Modification will target borrowers who are at least 90 days delinquent on mortgages that are at least 12 months old, and meet other eligibility criteria


Eligible borrowers are not required to submit documentation, but can accept a Streamlined Modification offer simply by making the trial period payments. The modification becomes permanent once the borrower demonstrates their ability to pay by completing the trial period

The Streamlined Modification offers the same mortgage terms as the Standard Modification Freddie Mac announced in September 2011, which enables servicers to reduce a borrower's monthly mortgage payment by adjusting interest rates, extending payment terms to 40 years, and providing principal forbearance for certain underwater borrowers.

Use of the Streamlined Modification Solicitation Letter and the Streamlined Modification Trial Period Plan Notice is optional and may be altered at the Servicer’s discretion as it deems necessary to meet the requirements of the Guide and to comply with disclosure and other requirements under applicable law.


If the Borrower qualifies for a HAMP modification and the post-modified monthly principal and interest payment under the HAMP modification is less than the principal and interest payment available under the Streamlined Modification, the Servicer must offer the Borrower the HAMP modification.

Servicers must send a HAMP Agreement Cover Letter (Form 1118) to the Borrower indicating that a restart of the Trial Period is not required and if the Borrower complies with the terms of the Streamlined Modification Trial Period Plan and executes the Home Affordable Modification Agreement (Form 3157), he or she will receive the HAMP modification terms.

The Servicer must require the Borrower to continue making the Streamlined Modification Trial Period Plan payments and send the Borrower a Home Affordable Modification Agreement reflecting HAMP modification terms upon successful completion of the Streamlined Modification Trial Period Plan.

The Servicer must convert the existing Streamlined Modification Trial Period Plan to a HAMP Trial Period Plan in Workout Prospector. The Workout Prospector® Users’ Guide will be updated to provide additional instruction for this purpose once Workout Prospector has been updated.If the Borrower does not qualify for a HAMP modification based on a review of a complete Borrower Response Package received during the Trial Period, the Servicer must communicate to the Borrower verbally or in writing the Borrower’s ineligibility for HAMP, and reconfirm that if the Borrower complies with the terms of the Streamlined Modification Trial Period Plan and returns an executed modification agreement, the Mortgage will be modified under the terms of the Streamlined Modification.from the servicing guide announcement at fannie mae MArch 27th, 2013:

Fannie Mae is introducing a new mortgage loan modification, Streamlined Modification, which targets borrowers whose mortgage loans are at least 90 days delinquent and who meet the eligibility requirements provided below.

Prior to and after offering a Streamlined Modification, a servicer must continue to comply with the delinquency management and default prevention requirements in the Servicing Guide, as updated through this Announcement.

The policies in this Announcement apply to all conventional mortgage loans held in Fannie Mae’s portfolio and to mortgage loans that are part of an MBS pool that have the special servicing option or a shared-risk MBS pool for which Fannie Mae markets the acquired property.

Servicers are encouraged to implement the Streamlined Modification policies immediately; however, servicers are required to implement these policies for borrowers who are eligible for a Streamlined Modification on or after July 1, 2013. The Streamlined Modification will expire on August 1, 2015; therefore, all Streamlined Modification Trial Period Plans must have an effective date on or before August 1, 2015.

Eligibility requirements - Mortgage loans must satisfy all of the eligibility requirements shown below to be eligible for a Streamlined Modification.

- must be at least 90 days delinquent, but no more than 720 days delinquent;

- must have a pre-modified mark-to-market loan-to-value ratio (the gross unpaid principal balance of the mortgage loan divided by the current value of the property), greater than or equal to 80%; and

- must be a first-lien mortgage loan.

Fannie Mae is eliminating the requirement that the standard mortgage loan modification results in a P&I payment reduction of at least 10%. Instead, Fannie Mae is now requiring that the standard mortgage loan modification result in a P&I payment that is less than or equal to the pre-modification P&I payment.

To be considered eligible for a Streamlined Modification, a complete Borrower Response Package is not required.

Borrowers will continue to be eligible for the Streamlined Modification even if a payment is received following the borrower evaluation or solicitation that results in the borrower subsequently becoming less than 90 days delinquent. However, the borrower must be at least 30 days or more delinquent prior to the commencement of the Streamlined Modification Trial Period Plan.

Eligibility Exclusions:

The mortgage loan was previously modified under the Fannie Mae standard modification payment structure described in the Servicing Guide, Part VII, Section 602: Mortgage Loan Modifications, and became 60 or more days delinquent within 12 months of the modification effective date.

The mortgage loan origination date was less than 12 months prior to the date of evaluating eligibility for a Streamlined Modification.

The mortgage loan was previously modified two or more times, regardless of the modification program or dates of prior modifications.

The borrower previously failed a Trial Period Plan under a Fannie Mae standard modification payment structure within 12 months of evaluating eligibility for a Streamlined Modification.

The calculated Streamlined Modification monthly principal and interest (P&I) payment is greater than the borrower’s current contractual P&I obligation.

The mortgage loan is insured or guaranteed by a federal government agency (e.g., FHA, VA, or Rural Housing).

The mortgage loan is subject to:

a recourse or indemnification arrangement under which Fannie Mae purchased or securitized the mortgage loan or that was imposed by Fannie Mae after the loan had been purchased or securitized;active nonroutine litigation described in the Servicing Guide, Part VIII, Section 101: Routine vs. Nonroutine Litigation;a current offer for another modification or other foreclosure prevention alternative, such as a forbearance or repayment plan;an active and performing Trial Period Plan; an approved liquidation workout; or an active and performing forbearance or repayment plan, unless otherwise directed by Fannie Mae.

The borrower previously defaulted on either a Streamlined Modification Trial Period Plan or a Streamlined Modification.

The mortgage loan is on the most recent Fannie Mae Non-Eligible List, located on Fannie Mae’s website, at the time the servicer is evaluating eligibility for solicitation. If a mortgage loan is on Fannie Mae’s Non-Eligible List, the servicer must pursue receipt of the Borrower Response Package to evaluate the borrower for another foreclosure prevention alternative in accordance with the requirements in the Servicing Guide.

Servicers are required to check all mortgage loans that become 90 days delinquent against Fannie Mae’s Non-Eligible List prior to sending the borrower an initial or any subsequent Streamlined Modification Solicitation Letter as set forth in this Announcement. Mortgage loans not meeting the eligibility requirements for a Streamlined Modification must be evaluated for another type of modification or other foreclosure prevention alternative, provided the borrower submits a complete Borrower Response Package.

Once the Streamlined Modification Solicitation offer is accepted, follow-up solicitations for incomplete Borrower Response Packages are not required. If the borrower does not accept the offer, then the servicer must resume follow-up solicitation for the incomplete documentation in accordance with the Servicing Guide.

If the borrower qualifies for a Fannie Mae HAMP modification with a post-modification monthly P&I payment lower than the P&I monthly payment offered under the Streamlined Modification, the servicer must send a new offer to the borrower indicating that the borrower qualified for a Fannie Mae HAMP modification with a lower P&I payment.

The offer letter must indicate that if the borrower chooses to accept the Fannie Mae HAMP modification, the borrower will not be required to complete a new HAMP Trial Period Plan at the conclusion of the Streamlined Modification Trial Period Plan, but will execute a Modification Agreement under the terms of the Fannie Mae HAMP modification program upon successful completion of the Streamlined Modification Trial Period Plan.

If the borrower does not qualify for a Fannie Mae HAMP modification with a post-modification P&I payment lower than the P&I monthly payment offered under the Streamlined Modification, or if the borrower fails to return a complete Borrower Response Package within the prescribed timeline provided in the Streamlined Modification Solicitation Letter (and as a result is not eligible for a Fannie Mae HAMP modification), the servicer must also communicate to the borrower that he or she is not eligible for a HAMP modification.

The servicer, however, must communicate to the borrower that he or she continues to be eligible for the Streamlined Modification, and that if the borrower makes the trial payments in accordance with the requirements of the Streamlined Modification Trial Period Plan previously provided to the borrower, the mortgage loan will be permanently modified pursuant to the terms of the Streamlined Modification Trial Period Plan. As provided in the Servicing Guide, the servicer must comply with all applicable laws in connection with processing the Streamlined Modification.

Streamlined Modification Terms:The servicer must comply with the requirements described in the Servicing Guide, Part VII, Section 602.02.05:

Conventional Mortgage Loan Modification Terms, to determine the mortgage loan modification terms for a Streamlined Modification Trial Period Plan.

Completing the Modification:

Upon successful completion of the Streamlined Modification Trial Period Plan, the servicer will document and process the permanent modification in accordance with the applicable requirements in the Servicing Guide, based on the borrower’s qualification for a Streamlined Modification or Fannie Mae HAMP Modification, as described above. (For the Streamlined Modification, the servicer should refer to Part VII, Section 602.02.07: Executing and Processing the Loan Modification Agreement. For a Fannie Mae HAMP modification, the servicer should refer to Part VII, Section 609.03.06: Executing the HAMP Documents.)

Postponing Referral to Foreclosure or Foreclosure Proceedings:

Servicers must comply with the requirements in the Servicing Guide, Part VIII, Section 106: Referral to Foreclosure Attorney/Trustee and Section 107.01: Servicer-Initiated Temporary Suspension of Proceedings, in connection with offering Streamlined Modifications.

Streamlined Modification Incentives:

Fannie Mae will pay the servicer an incentive fee consistent with the tiered incentive structure for the Fannie Mae standard modifications as described in the Servicing Guide, Part VII, Section 602.04.05 titled Incentives.Any Streamlined Modification Trial Period Plan entered into by the borrower shall count towards the servicer achieving the minimum incentive benchmark (as described in the Servicing Guide, Part VII, Section 205.05:

Servicer Incentives and Compensatory Fees for Borrower Response Packages) upon the servicer’s entry of the associated case into the Home Saver Solutions Network (HSSN).Servicers will be paid a $500 incentive fee only for collection of a complete Borrower Response Package, provided the collection is reported to Fannie Mae in accordance with the Servicing Guide.

Mortgage Insurer Approval:

As a reminder, Fannie Mae has obtained delegations of authority with mortgage insurance companies so that servicers can more efficiently process modification requests without the need to obtain mortgage insurer approval on individual mortgage loans. A list of these mortgage insurers is posted on Fannie Mae’s website. For mortgage insurers not on this list, servicers must continue to obtain their approval on a case-by-case basis.Freddie and Fannie we will be using all the tools available to us to screen for potential strategic defaulters known as the "HAMPster Wheel" participants on this forum.
will the do the streamline if last year I got a loan modification, but I still need help (lower income now)

please advice,
thanks
 

enigma99a

LoanSafe Member
Jan 3, 2011
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My home is about 4 months behind with Green Tree, and I got a steamlined offer at the above mentioned 4.625% - 40 years. This includes my 340K owed + 12K in past due payments. So the modified payment is a little over 2,000.

Unfortunately, this a little out of reach still in my situation. Would HAMP result in a better rate?
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
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San Diego, California
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My home is about 4 months behind with Green Tree, and I got a steamlined offer at the above mentioned 4.625% - 40 years. This includes my 340K owed + 12K in past due payments. So the modified payment is a little over 2,000.

Unfortunately, this a little out of reach still in my situation. Would HAMP result in a better rate?
This is definitely not a bad offer, but if the payment is over 31 percent of your gross income then you may be able to achieve better. Virtually all HAMP modifications will start out at 2 percent for the initial five years (step-rate mod) and about 4-5 percent fixed for the life of the loan..
 
My home is about 4 months behind with Green Tree, and I got a steamlined offer at the above mentioned 4.625% - 40 years. This includes my 340K owed + 12K in past due payments. So the modified payment is a little over 2,000.

Unfortunately, this a little out of reach still in my situation. Would HAMP result in a better rate?
Hi, What was your monthly payment and interest amount prior to the mod offer?
You are very fortunate to have been offered a streamlined.
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
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48
San Diego, California
www.LoanSafe.org
will the do the streamline if last year I got a loan modification, but I still need help (lower income now)

please advice,
thanks
Nbtapia, here are two situations below that would make you ineligible for a Streamlined modification program through Fannie Mae. Although it does not state that you're ineligible if you entered one modification, keep in mind that many times servicers will not review your account for a second modification until 12 months has passed since entering the initial agreement..

1. The mortgage loan was previously modified two or more times, regardless of the modification program or dates of prior modifications.

2. The borrower previously failed a Trial Period Plan under a Fannie Mae standard modification payment structure within 12 months of evaluating eligibility for a Streamlined Modification.
 
So I was scouring the net for more info on the streamlined mods. I found this talkradio discussion which is 90 minutes long. The lead speaker is a policy analyst with Freddie Mac. The discussion is all about the Streamline Modification process/program very informative. The only thing it does not bring up is what happens if the servicer doesn't want to participate..ie..B of A?

Freddie Mac?s New ?Streamlined Modification? 01/09 by The Power Is Now Radio | Real Estate Podcasts

PS: Thanks for reopening this thread.
 

RexMorgan

LoanSafe Member
Jan 25, 2013
56
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Any idea if they can mod your loan by extending the years, but not change or fix the rate?

Extending it to 40 years would help us, but changing the rate to 4 or 4.6 would make it worse (we're currently at 2.625 though variable).

Thanks,

Rex
 
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samk

LoanSafe Member
Jul 31, 2014
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What do you have to say in regard to the new guidelines allowing the streamlined/standard modification to apply to loans that have a mmltv <80%. It sounds great. However if the borrowers current rate is above the current ppms rate then they will leave the borrower at their current rate. Therefore in almost all cases the PI payment wont decrease making them ineligible for the modification. And this is especially bothersome since this program is supposed to help borrowers who got HAMP and then defaulted, sort of a second chance, but if they got 2% on HAMP and they will raise them to 4.5 ( the current ppms) on the streamlined then their payment wont decrease as required. I think they have to eliminate that requiremtn
 

Michael Naz

Michael Naz
Jan 9, 2011
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the pmms is 4.125 and if the rate is higher than the streamlined mod rate that is currently at 4.625% over 480 months they will bring it to that rate.

they will not increase the rate from the below 4.625% streamlined 480 month term if borrower is in hamp mod or in house, or at least that is not the intent and spirit of the guidelines.

mistakes and errors to happen and if someone is being offered a rate at 4.625% and they are currently below that at the max rate of the mod in yrs 8- to maturity for example in MHA HAMP then, they will remain there and should not accept the offer of the higher rate and longer term.
 

samk

LoanSafe Member
Jul 31, 2014
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the pmms is 4.125 and if the rate is higher than the streamlined mod rate that is currently at 4.625% over 480 months they will bring it to that rate.

they will not increase the rate from the below 4.625% streamlined 480 month term if borrower is in hamp mod or in house, or at least that is not the intent and spirit of the guidelines.

mistakes and errors to happen and if someone is being offered a rate at 4.625% and they are currently below that at the max rate of the mod in yrs 8- to maturity for example in MHA HAMP then, they will remain there and should not accept the offer of the higher rate and longer term.
My error I was referring to the standard mod rate not the pmms. However I was referring to borrowers who defaulted on a permanent hamp modification. This program and is supposed to give them a second chance but being that the current standard modification rate is at 4.5 ( as of July 14, 2014) they would have to increase there current rate to that thus raising there PI payment which I turn makes them in eligible.
And second point I was making which I wrote first is that the new announcement that allows borrowers who are at <80% mmltv get a modification under this program however their interest rate will stay the same at best then it's self defeating because in most cases by capitalizing the delinquency the PI will have to increase unless there is a decrease in interest rate. I hope I made myself clear this time and I wish you can tell me how to get out of this one because I know a lot of borrowers who are stuck and got declined for the standard mod due to this issue.
 

samk

LoanSafe Member
Jul 31, 2014
4
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the pmms is 4.125 and if the rate is higher than the streamlined mod rate that is currently at 4.625% over 480 months they will bring it to that rate.

they will not increase the rate from the below 4.625% streamlined 480 month term if borrower is in hamp mod or in house, or at least that is not the intent and spirit of the guidelines.

mistakes and errors to happen and if someone is being offered a rate at 4.625% and they are currently below that at the max rate of the mod in yrs 8- to maturity for example in MHA HAMP then, they will remain there and should not accept the offer of the higher rate and longer term.
 

samk

LoanSafe Member
Jul 31, 2014
4
0
1
46
I was referring to borrowers who defaulted on a permanent hamp modification. This program and is supposed to give them a second chance but being that the current standard modification rate is at 4.5 ( as of July 14, 2014) they would have to increase there current rate to that thus raising there PI payment which I turn makes them in eligible.
And second point I was making which I wrote first is that the new announcement that allows borrowers who are at <80% mmltv get a modification under this program however their interest rate will stay the same at best then it's self defeating because in most cases by capitalizing the delinquency the PI will have to increase unless there is a decrease in interest rate. I hope I made myself clear this time and I wish you can tell me how to get out of this one because I know a lot of borrowers who are stuck and got declined for the standard mod due to this issue.
 
Can it be? Is it true? Yes Yes it is!
After nearly 2 years the wheel is about to STOP.
I've never received a modification offer of any kind and I've never sent even 1 complete HAMP package Well the STREAMLINED program ends THIS year 1st of August 2015 unless extended. Well the other day I opened my door and there was yet another Fed Ex package from B of A.
This one was heavier however. When I opened it up I saw SEVERAL little return envelopes I knew then what I had in my had.. SOME kind of modification but what? Well low and behold after a year and a half or so a STREAMLINED mod has been offered.
Even better news the interest rate is only 4.00 %. I was a bit confused as I had posted last years on this thread that the rate had went UP to 4.65%
Well when I went to the fannie mae sight in the link in above threads it turned out the interest rate has DROPPED again..Ok I'll put that link here

http://www.freddiemac.com/singlefamily/service/standardmodrate.html

Payment dropped nearly $300 so I'm a happy camper at 4% for 40 years. ( I won't have this house for that long so if they went 80 years I'd be happy LOL )

Now I just need to make 3 or maybe even 4 trial payments and it will be made permanent.
The journey may finally be over.

Thanks EVAN, TOM, CAT, MO and the rest!
 
Disregard my post above. I tried to edit it but it timed out. Instead read this below:

Can it be? Is it true? Yes Yes it is!
After nearly 2 years the HAMP wheel is about to STOP.
I've never received a modification offer of any kind and I've never sent even 1 complete HAMP package. Well the STREAMLINED program ends THIS year 1st of August 2015 unless extended and you become ineligible if your loan is late MORE than 24 months delinquent . I'm at about month 23. Yikes!

The other day I opened my door and there was yet another Fed Ex package from B of A.
This one was heavier however. When I opened it up I saw SEVERAL little return envelopes I knew then what I had in my hand.. SOMEKIND of modification but what? Well low and behold after being available for a year and a half or so a STREAMLINED mod has been offered to me.

Even better news the interest rate is only 4.00 %.
I was a bit confused as I had posted last year on this thread that the rate had went UP to 4.65%
Well when I went to the freddiekruger website in the link below it turned out the interest rate shas DROPPED again.

http://www.freddiemac.com/singlefamily/service/standardmodrate.html

My monthly Payment dropped nearly $300 so I'm a happy camper at 4% for 40 years. ( I won't have this house for that long so if they went 80 years I'd be happy LOL )

Now I just need to make 3 or maybe even 4 trial payments and it should be made permanent.
The journey may finally be over.

Thanks EVAN, TOM, CAT, MO and the rest!