why would you do a mod without proof that the homeowner even has the ability to pay it????? Scratching my noggin on this one!!
The FHA Streamline Initiative makes three major changes to their existing system. Employment verification is no longer required with an FHA Streamline Refinance. Income verification is also no longer required. The FHFA will also use the Streamline Modification Initiative to monitor credit score, taking that out of borrower’s hands, as well.
The Mortgage Reports’ Dan Green puts it together as “There's no need for a home appraisal, either, so when you put it all together, you can be (1) out-of-work, (2) without income, (3) carry a terrible credit rating and (4) have no home equity. Yet, you can still be approved for an FHA Streamline Refinance.”