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The Flex Modification leverages components of HAMP, the Fannie Mae Standard and Streamlined Modifications. Highlights include:
The Fannie Mae Flex Modification can be applied to all mortgage loan delinquencies, and to mortgage loans that are determined to be in imminent default in accordance with the Servicing Guide.
The program will offer additional payment relief allowing forbearance of principal to an 80% mark-to-market loan-to-value ratio (MTMLTV) for eligible borrowers (not to exceed 30% of the unpaid principal balance) in two ways: o For borrowers less than 90 days delinquent, the program requires a complete loss mitigation application and targets a 20% payment reduction and 40% housing expense-to-income ratio. o For borrowers 90 or more days delinquent, the program targets a 20% payment reduction and requires no borrower documentation.
Overview of the program "Lender Letter LL-2016-06"
Fannie Mae is introducing a new mortgage loan modification jointly developed with Freddie Mac at the direction of the Federal Housing Finance Agency. The Fannie Mae Flex Modification combines features of the Fannie Mae HAMP, Standard Modification, and Streamlined Modification, and is intended to replace Standard and Streamlined Modifications as of the effective date provided below. The Fannie Mae Flex Modification can be applied to all mortgage loan delinquencies, and to mortgage loans that are determined to be in imminent default in accordance with the Servicing Guide. Borrowers with mortgage loans less than 90 days delinquent must submit a complete Borrower Response Package (BRP) in accordance with this Lender Letter, and will be evaluated for a Fannie Mae Flex Modification which will target a 20% payment reduction and a 40% Housing Expense-to-Income (HTI) Ratio. Borrowers with mortgage loans 90 or more days delinquent are not required to submit a BRP and will be evaluated for a Fannie Mae Flex Modification which will target a 20% payment reduction. Effective Date The servicer is encouraged to implement the policies in this Lender Letter as early as March 1, 2017; however, the servicer must begin evaluating borrowers for the Fannie Mae Flex Modification no later than October 1, 2017. Once implemented, the servicer must offer the Fannie Mae Flex Modification to all eligible borrowers according to the requirements in this Lender Letter and not evaluate borrowers for a Fannie Mae Standard or Streamlined Modification. Date of Servicing Guide Update The policy changes in this Lender Letter will be reflected in the October 2017 update of the Servicing Guide. This Lender Letter covers the following requirements for the Fannie Mae Flex Modification:
Determining Eligibility for a Fannie Mae Flex Modification
Determining Eligibility for a Fannie Mae Flex Modification for a Texas Section 50(a)(6) Mortgage Loan
Obtaining a Property Valuation
Performing an Escrow Analysis
Determining the Fannie Mae Flex Modification Terms
Calculating the Housing Expense-to-Income Ratio
Offering a Trial Period Plan and Completing a Fannie Mae Flex Modification Soliciting the Borrower for a Fannie Mae Flex Modification
Handling a Complete Borrower Response Package
Preparing the Loan Modification Agreement
Executing and Recording the Loan Modification Agreement
Adjusting the Mortgage Loan Account-Post Mortgage Loan Modification
Unlimited Customer Service Support
Our clients can contact the customer service support staff for questions pertaining to their case.
Experienced Mortgage Professionals
Experience mortgage loan underwriters are assigned to every case to negotiate with opposing party and/or to stop and delay foreclosure proceedings.
Don't fall for common traps
“I’ll do it myself” is the most common response by all homeowners behind on their mortgage payment. Lenders encourage this behavior. However, net present value (NPV) calculations and debt to income (DTI) ratio calculations must be very specific in order for you to qualify. Lenders have also been accused in the past of finding reasons to deny homeowners loan modifications.
Sometimes homeowners behind on their mortgage are encouraged to simply sell their home when they’re behind on payments. However it can often be very lucrative for you to keep your home through mortgage litigation and start making a new lower mortgage payment or simply utilize the home for an investment property. Mortgage litigation can also buy a significant amount time in the property by delaying foreclosure..
Although Bankruptcy can stop a foreclosure sale date it will NOT restructure your loan. It merely sets up a repayment structure, whereby you pay your current payment to your lender, and also a second payment to the potential trustee for the many years of back payments you owe. It may not be a permanent solution in your situation, but at times a delay tactic.
Past Due Arrears
Foreclosure is scary and is usually a process homeowners are entirely unfamiliar with. The anxiety can lead a homeowner into finding all possible means to pay back the entire past due arrears directly to the lender. Before jumping to this conclusion you should consult with professionals. Professionals can often negotiate the elimination of lender servicing fees and penalties when obtaining a reinstatement quote. It’s also possible to capitalize all past due arrears and start off with a fresh payment through mortgage litigation.
Bank Ready Package
Our Bank Package
In addition to the concise documentation we provide in our standard package plan, we can further strengthen your case by including a professionally written and composed letter of hardship, and additional supporting documents including:
Letter of Hardship
Lender Specific Financial Statement
Request for Transcript of
Tax Return 4506-T
Freddie Mac 1126 Financial Statement (if applicable)
What will need from you
Net Present Value Calculation
Net Present Value Calculation
"Helped us stay in our home and reduced our payment down $770.73. Wow!!! what a huge start with your help. Looking forward to continuous help with the process with your company to help us now to work on reducing our principal of our loan."
-- Cynthia D. Siller
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-- Luis Medina