What type of loan modification program will the mortgage holder use?
The mortgage holder must use a loan modification program that includes all of the following features: A debt-to-income ratio of 38% or less. The debt includes mortgage principal and interest, property taxes, insurance, and homeowner’s fees. To reach the 38% target, the loan modification program may include 1 or more of the following features: ○ A reduction of interest rate (subject to a floor of 3%), for a fixed term of at least 5 years. ○ An extension of the loan term up to 40 years from the date of the loan modification. ○ Deferral of some portion of the unpaid principal balance up to 20%, until maturity, refinancing of the loan, or sale of the property. ○ Reduction or elimination of late fees. If the mortgage loan is pooled for sale to an investor that is a governmental entity (e.g. Government National Mortgage Association – Ginnie Mae), then the designated agent must use the modification guidelines dictated by the governmental entity. If the mortgage loan has been sold to a governm
The mortgage holder must use a loan modification program that includes all of the following features: A debt-to-income ratio of 38% or less. The debt includes mortgage principal and interest, property taxes, insurance, and homeowner’s fees. To reach the 38% target, the loan modification program may include 1 or more of the following features: ○ A reduction of interest rate (subject to a floor of 3%), for a fixed term of at least 5 years. ○ An extension of the loan term up to 40 years from the date of the loan modification. ○ Deferral of some portion of the unpaid principal balance up to 20%, until maturity, refinancing of the loan, or sale of the property. ○ Reduction or elimination of late fees.
