Effective immediately, Freddie Mac servicers can offer delinquent borrowers a streamlined loan modification that can provide payment relief more quickly and with less paperwork than a standard modification.
The new streamlined program was first announced in March and was made available to Hurricane Sandy victims a few weeks ago.
It was slated to go into effect July 1 nationwide. But Freddie decided to move the effective date up so servicers could speed up the availability of the new streamline approach.
Under the new program, servicers can offer borrowers who are 90-120 days delinquent a chance to enter a three-month payment trial. Eligible borrowers are not required to submit documentation to qualify.
“Freddie Mac is giving a green light to its mortgage servicers to speed up financial relief for potentially thousands of families with delinquent mortgages across the nation,” Freddie said Monday.
“Now mortgage servicers can send eligible borrowers their streamlined modification trial period terms as soon as they are ready and borrowers can modify their loans by making the three trial period payments on time,” according to the agency.