New Fannie Mae Restrictions Disqualify Many From HAMP
Homeowners carrying mortgage loans backed by mortgage giant Fannie Mae may face difficulties securing modifications through the Home Affordable Modification Program. The mortgage guarantor will no longer consider unemployment benefits a source of income on HAMP applications. The new rule will go into effect on November 1, 2010.
The move follows a similar ban that was put in place by the Department of Treasury, which went into effect in July. Although Fannie Mae will no longer characterize unemployment benefits as income, the group will consider the unemployed applicant for forbearance. If approved, the period would last for six months and either reduce his or her payments or pause them for a certain period of time.
Despite the new forbearance option, foreclosures are expected to rise as a result of Fannie Mae's new policy.
Modification programs are popular source of debt relief for many struggling homeowners, but most have found they do not meet their credit score and income requirements to negotiate their mortgage contracts. Some mortgage guarantors have established their own modification programs as a result, hoping to cut their foreclosure losses.
Mortgage modification applications have piled up recently as more... Read more
A large number of Americans who have fallen behind on their mortg... Read more
Mortgage modification programs have become a popular form of debt... Read more
Underwater mortgages have become more of a problem as of late, en... Read more
Consumers are working out short sale transactions with their lend... Read more
New government regulations in place for consumers in need of debt relief for credit cards and other unsecured debts.