On December 31, 2016, HAMP (Home Affordable Modification Program) expired. However, the good news is that Fannie Mae has announced that there will be a new loan modification program that will be implemented to help homeowners in need in 2017.
The new “Flex Modification” is designed to take the place of the Standard and Streamlined HAMP programs starting on October 1, 2017. Fannie Mae is encouraging lenders to update their systems with the new program requirements and it states that lenders may begin to submit applications as early as March 1, 2017. It appears that in the interim, borrowers will continue to be assessed for HAMP loan modifications.
Fannie Mae’s December 14, 2016 news release stated:
“The Flex Modification incorporates input from a wide range of industry participants as well as lessons learned from earlier programs. It is expected to provide a 20 percent payment reduction for eligible borrowers. A high percentage of those who are at least 60 days delinquent would be eligible; the modification could also be an option for those who are current or less than 60 days delinquent in certain situations.”
Under the Flex Modification program, borrowers who are in imminent danger of becoming delinquent, or who are under 90-days delinquent on their loans will be required to submit a complete loan modification application. Borrowers who are 90-days or more delinquent will not be required to provide a completed loan modification application.
Even without HAMP or the Flex Modification program, borrowers can still try to get a loan modified with proprietary or in-house loan modifications, but those programs vary considerably from servicer to servicer.