• DYE CULIK PC | Consumer Protection Division

New Streamlined Modification Program Announced For Past-Due Mortgages


To qualify for a Streamlined Modification, a homeowner must be at least three months behind, but no more than two years behind.

Homeowners will be able to obtain modifications without having to provide the sort of extensive financial information that they have had to provide for other programs. Alternatively, a homeowner may also provide a full financial package to apply for other programs such as the Home Affordable Modification Program (HAMP). Depending on the homeowner’s specific financial circumstances, such as income, mortgage balance, and arrears, different programs may offer different modified terms.

The terms of the streamline modification will be as follows. The interest rate will be reduced to 4% (this rate may be updated from time to time). The term of the loan will be extended to 40 years. And the bank can also provide a principal forbearance to reduce the amount of principal on which the homeowner is paying interest.

As with other loan-modification programs, homeowners will have to complete a three-month trial loan modification before being provided with the paperwork for a permanent modification.

The streamlined modification program starts July 1, 2013, but banks can begin offering modifications under the Streamlined Modification program on May 13, 2013. The program expires August 1, 2015.

You can check if your loan is owned by Fannie Mae or Freddie Mac by checking their websites:

  1. Fannie Mae: https://knowyouroptions.com/loanlookup

  2. Freddie Mac: https://ww3.freddiemac.com/corporate

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