Freddie Mac says its Streamlined Modification program is now available to all eligible borrowers nationwide. The initiative was originally schedule to roll out on July 1.
Under the Streamlined Modification program, servicers are required to send modification offers to borrowers who are at least 90 days – but no more than 720 days – delinquent on mortgages that are at least 12 months old and meet other eligibility criteria. These borrowers are not required to submit documentation for a Streamlined Modification, and the modifications become permanent after borrowers demonstrate their ability to make on-time payments during a three-month trial period.
The Streamlined Modification offers the same mortgage terms as Freddie Mac's Standard Modification, which enables servicers to reduce monthly mortgage payments by adjusting interest rates, extending payment terms to 40 years and, in certain cases, provide principal forbearance.
For more details, visit freddiemac.com.