Fannie Mae has introduced a series of measures designed to help borrowers and loan servicers address potential mortgage problems and prevent unnecessary home foreclosures.
The steps include specific direction to servicers to provide foreclosure prevention assistance as soon as a borrower demonstrates the need for help – even if a borrower is current, but default is reasonably foreseeable.
In addition, Fannie Mae says its new Early Workout program allows servicers, in one step, to pre-negotiate a loan modification that becomes effective and permanent only after an initial trial period. The Early Workout process can begin as soon as a borrower demonstrates the need for a modification.
The agency has also doubled the maximum forbearance and repayment plan periods for most loans to borrowers in need of loan workouts and issued a new 2009 Single-Family Master Trust Agreement and servicer guidance that give Fannie Mae servicers the flexibility to remove a loan from a mortgage-backed securities pool once the loan is one month delinquent for the purpose of a loan modification.
Further details on the new guidelines and measures are available at www.fanniemae.com.
Source: Fannie Mae