On March 18, 2010, Fannie Mae introduced the Alternative Modification ("Alt Mod") initiative for borrowers who are current on their HAMP trial payments but who do not qualify for a permanent HAMP modification for reasons other than payment. Fannie Mae is now extending the time frame during which Alt Mod applications must be submitted from September 30, 2010 to November 30, 2010. Other eligibility provisions of Alt Mod remain unchanged.
Any trial modifications that become permanent modifications under Alt Mod will require mandatory purchase of the modified loans from MBS trusts.
Market participants should consult our June 1, 2009 MBS Prospectus for additional information regarding our trust agreement provisions and servicing practices regarding loan modifications, including purchases of modified loans from MBS trusts.
Originally published: 09/30/10