Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA) reported that its Flex Modification foreclosure prevention plan, which is intended to assist America’s families by providing reductions to monthly mortgage outflows. The Flex Modification influences components of company’s Home Affordable Modification Program, which is set to terminate at the close of this year, and the company’s Standard and Streamlined Modifications, which are set to be swapped by the Flex Modification in 2017.
The highlights
This new program was advanced in alignment with Federal National at the direction of the FHFA. The Flex Modification includes input from a broad range of industry participants and lessons learned from earlier plans. It is projected to offer a 20% payment decline for eligible borrowers. An increased percentage of the borrowers who are at least 60 days’ negligent would be qualified; the modification could also be a route for those who are present or less than 60 days’ negligent in specific situations.
The plan was shaped by a white paper issued in July 2016. It laid out 5 factors, accountability, sustainability, transparency, accessibility and affordability that should make the base of future loss mitigation plans.
Bill Cleary, the VP of Single-Family Servicing Policy with Federal National, reported that the Flex Modification can be defined as an adaptive plan that will enable them to continue to help struggling homeowners in a varying housing environment and streamline the procedure for servicers to offer those solutions. They consider the plan is flexible to regulate for regional and local differences in housing. It offers the considerable amount of help to those areas in need.
This new change will replace the existing Federal National’s Standard and Streamlined Modification products on and after October 2017. In the interim, workers must continue to assess debtors for Standard and Streamlined Modifications subsequent to the evaluation hierarchy.
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