Starting this summer, mortgage servicers will be required to offer a new modification program to eligible borrowers who are at least 90 days delinquent on their Fannie Mae or Freddie Mac-owned or guaranteed mortgage, the Federal Housing Finance Agency announced this week.
The new Streamlined Modification Initiative eliminates the requirement that borrowers document their hardship or financial situation, the FHFA said in a release.
As of July 1, 2013, servicers must identify eligible borrowers who are 90 days to 24 months delinquent and send them an offer letter that states the terms of the modification, including the monthly payment required for a Streamlined Modification. The borrowers can accept the deal by simply sending the specified payment and agreeing to the terms.
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