Standard Modification

Fannie Mae & Freddie Mac Modification Guidelines 

 

The mortgage loan must be a first lien mortgage loan.

The mortgage loan must not be insured or guaranteed by a federal government agency (e.g., FHA, VA, or Rural Housing).

The mortgage loan must be at least 90 days delinquent, unless the mortgage loan was previously modified into a mortgage loan with a step-rate feature and an interest rate adjustment occurred within the last 12 months, in which case the mortgage loan must have become 60 days delinquent after the interest rate adjustment.

The mortgage loan must have been originated at least 12 months prior to the evaluation date for the mortgage loan modification.

The mortgage loan must not have been previously modified in accordance with Standard Modification and become 60 or more days delinquent within 12 months of the modification effective date without being reinstated.

The mortgage loan must not have been modified three or more times previously, regardless of the mortgage loan modification program or dates of prior mortgage loan modifications.

The borrower must not have failed a Trial Period Plan under a Fannie Mae/Freddie Mac standard modification in accordance with Standard Modification within 12 months of being evaluated for eligibility for a Streamlined Modification.

The borrower must not have previously defaulted on a Streamlined Modification Trial Period Plan or a Streamlined Modification.

The mortgage loan must not be subject to

•a recourse or indemnification arrangement under which Fannie Mae/Freddie Mac purchased or securitized the mortgage loan or that was imposed by Fannie Mae/Freddie Mac after the mortgage loan was purchased or securitized;

•a current offer for another mortgage loan modification or other workout option;

•an active and performing Trial Period Plan;

•an approved liquidation workout option; or

•an active and performing forbearance plan or repayment plan.