Fannie Mae Announces Updates to Determining the Flex Modification Terms

In alignment with Freddie Mac and at the direction of FHFA, we've issued Lender Letter (LL-2024-02): Updates to Determining the Flex Modification Terms to expand borrower eligibility and provide more equitable payment reduction to eligible borrowers. Key changes include revising the mark-to-market loan-to-value (MTMLTV) based requirements and incrementally applying the terms to target 20% P&I payment reduction. Servicers may implement these changes starting November 1, 2024, but must implement them by December 1, 2024.

For questions, please contact the Fannie Mae Investor Help line at 1-800-232-6643, Option 3, or by email.