Modification Program Update
Fannie Mae has updated the terms of its standard and streamlined modification programs so that eligible homeowners (those with loans owned by Fannie Mae and at least 90 days behind on their mortgage payments) may now qualify—even if they have equity in their home.
With this enhancement, standard and streamlined modification programs now offer relief to homeowners with loan-to-value (LTV) ratios less than 80%, for the first time across all mortgage servicers. "Loan-to–value" is a calculation frequently used by mortgage companies when qualifying borrowers for a mortgage. If you're modifying your mortgage, your LTV is calculated by dividing your mortgage balance by your home's current market value. (Click here to calculate your LTV.)
While mortgage companies are encouraged by Fannie Mae to implement the new policy immediately, companies must offer this program by April 1.
To find out more, use our Modification Calculator to see how a loan modification might benefit your situation. To find out your eligibility, contact your mortgage company (the company listed on your monthly mortgage statements), a HUD-approved housing counseling agency, or call the Homeowner's HOPE™ Hotline at 888-995-HOPE.