Fannie Mae Announces the Fannie Mae Flex Modification Program

December 14, 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 jointly developed 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.

With the introduction of this program, modification policies related to mortgage loans in an MBS trust will not change. We will continue to remove mortgage loans from the trust, as outlined in our Single-family MBS Prospectus, prior to completing a modification when a mortgage loan. In addition, as we do today, a mortgage loan may enter into a Trial Period Plan while still in the trust. During the trial period, Fannie Mae continues to advance principal and interest to the MBS trust based on the terms of the original mortgage loan.

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

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