Principal Writedowns and Kid Friendly Alligators

Mortgage and Lending with Columbia Mortgage Plus

You know how you take some things with a grain of salt, or maybe a dump truck load?


Your friends and mine @Fannie Mae quietly introduced a new "Flex Modification" program recently, apparently intended to replace the HARP train wreck that is scheduled to sunset in October.


I wonder if anybody has shoved their head into this running lawn mower yet?



Fannie Mae Announces New Foreclosure Prevention Program

Flex Modification to Provide Significant Payment Relief to Borrowers

Alicia Jones


WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today its Flex Modification foreclosure prevention program, which is designed to help America’s families by offering reductions to their monthly mortgage payments. The Flex Modification leverages components of Fannie Mae’s Home Affordable Modification Program (HAMP®), which is set to expire at the end of this year, and the Fannie Mae Standard and Streamlined Modifications, which will be replaced by the Flex Modification in late 2017.

The new program was developed in alignment with Freddie Mac at the direction of the Federal Housing Finance Agency (FHFA).

The Flex Modification incorporates input from a wide range of industry participants as well as lessons learned from earlier programs. It is expected to provide a 20 percent payment reduction for eligible borrowers. A high percentage of those who are at least 60 days delinquent would be eligible; the modification could also be an option for those who are current or less than 60 days delinquent in certain situations.

The program was shaped by a white paper published in July 2016 by the U.S. Department of the Treasury in conjunction with the U.S. Department of Housing and Urban Development (HUD) and FHFA titled Guiding Principles for the Future of Loss Mitigation. It laid out five factors – accessibility, affordability, accountability, sustainability, and transparency – that should form the foundation of future loss mitigation programs.

“The Flex Modification is an adaptive program that will allow us to continue to assist struggling homeowners in a changing housing environment and simplify the process for servicers to deliver those solutions,” said Bill Cleary, Vice President of Single-Family Servicing Policy, Fannie Mae. “We believe the program is flexible to adjust for regional and even local differences in housing. It provides the greatest amount of assistance to those areas in need.”

This new modification will replace the current Fannie Mae Standard and Streamlined Modification offerings on and after October 1, 2017. In the interim, servicers must continue to evaluate borrowers for Standard and Streamlined Modifications following the evaluation hierarchy.

Additional information about the Flex Modification is available here.

FHFA’s statement about the Flex Modification is available here.

Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit and follow us on


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Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Well you got me with the "Kid friendy alligators" because I've never heard of such an animal. The picture is perfect!

Feb 23, 2017 02:04 PM #1
Scott Thompson
Columbia Mortgage Plus - Blue Springs, MO
Commerical Finance - Blue Springs, MO

Nails it doesn't it? 

I think it would be apporximately 1029384756 times less grief just to get a condo in the French/Swiss Alps.

Feb 23, 2017 02:25 PM #2
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

I had either read or saw something about this yesterday.  I'll do some more research on it for our next training due this coming Wednesday

Feb 24, 2017 04:01 AM #3
Scott Thompson
Columbia Mortgage Plus - Blue Springs, MO
Commerical Finance - Blue Springs, MO

I am guessing this will not be getting a lot of press. 

Speculating wildly the servicers might not be real forthcoming with this option.

May as well fight for a Quiet Title if you have the werewithal to swing it.  I am sure they will want you to reafirm the debt and whatever else they can stick into you.

Make it a Great Day.

Feb 24, 2017 02:31 PM #4
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Scott Thompson

Commerical Finance - Blue Springs, MO
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