The Federal Housing Finance Agency (FHFA) has made changes to loan modification terms for COVID-19-impacted borrowers with mortgages backed by Fannie Mae or Freddie Mac needing payment reduction for successful home retention.
The updated terms are specifically for borrowers with permanent COVID-19 hardships and respond to the unprecedented nature of the pandemic.
Flex modification terms will be adjusted for COVID-19 hardships, making interest-rate reduction possible for eligible borrowers regardless of the borrower’s loan-to-value ratio.
