The Fannie Mae Flex Modification program

December 15, 2016


Fannie Mae uses loan modifications as one of our key home retention strategies, enabling struggling borrowers to remain in their homes while also reducing defaults on our book of business and mitigating credit losses. We have combined the features of the Fannie Mae Home Affordable Modification Program (HAMP®), Fannie Mae Standard Modification, and Fannie Mae Streamlined Modification into the Fannie Mae Flex Modification program, which will replace the Fannie Mae Standard and Streamlined Modifications as of the effective date. The Fannie Mae Flex Modification is being introduced at the directive of our conservator, the Federal Housing Finance Agency (FHFA), and was developed jointly with Freddie Mac.

Servicers may begin to implement the Fannie Mae Flex Modification as early as March 1, 2017, but must implement the program no later than October 1, 2017.

The Fannie Mae Flex Modification can be applied to all mortgage loan delinquencies, and to mortgage loans that are determined to be in imminent default in accordance with the Servicing Guide.

Fannie Mae's Commentary examines potential program efficiency, cost, and re-performance rates of the Fannie Mae Flex Modification program relative to its predecessor programs.

Investors may contact Fannie Mae's Investor Help line at 1-800-232-6643, Option 2 or via e-mail with any questions.

Frequently Asked Questions

Lender Letter 2016-06