WASHINGTON – April 29, 2011 – By the end of 2011, foreclosures under Fannie Mae and Freddie Mac – which hold or guarantee roughly 90% of all U.S. loans – must follow the same procedures. Loan servicers under Fannie and Freddie will be rewarded if they perform well and punished if they do not, according to Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco
“This initiative will direct servicers to reach families earlier, communicate more frequently and clearly, and provide relief,” says Michael J. Williams, Fannie Mae president and chief executive officer.
Changes under the new guidelines:
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=259345
-Loan servicers have to contact owner as soon as they fall behind start the modification process. TO work on a modification rather than foreclose in good faith.
-Fewer forms. All servicers will use the same forms so less comfusion. Everyone wins here. Faster Service also. KISS= Keep It Super Simple
-Must review each case then decide how they will proceed.
-Mortgage companies can no longer continue to foreclose while working on a loan modification.
-Loan servicers will be paid based on speed if a modification is done with in 4 months. (I would have prefered 2 months)
-If the house is already in foreclosure status the servicer will be paid incentives if they create and alternative to foreclosing.
“This initiative will direct servicers to reach families earlier, communicate more frequently and clearly, and provide relief,” says Michael J. Williams, Fannie Mae president and chief executive officer.
Changes under the new guidelines:
http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=259345
-Loan servicers have to contact owner as soon as they fall behind start the modification process. TO work on a modification rather than foreclose in good faith.
-Fewer forms. All servicers will use the same forms so less comfusion. Everyone wins here. Faster Service also. KISS= Keep It Super Simple
-Must review each case then decide how they will proceed.
-Mortgage companies can no longer continue to foreclose while working on a loan modification.
-Loan servicers will be paid based on speed if a modification is done with in 4 months. (I would have prefered 2 months)
-If the house is already in foreclosure status the servicer will be paid incentives if they create and alternative to foreclosing.
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