Streamlined Modification Program

Home Affordable Modification Replaces Streamlined Modification Program (SMP)Effective March 4, 2009, servicers can no longer offer the SMP to borrowers. Available as a result of the Obama Administration's Making Home Affordable program, the Home Affordable Modification program (HMP) replaces the SMP.

Servicers must continue to offer the original SMP terms to borrowers who are completing SMP trial payment periods after the SMP end date. Once the borrower completes the SMP trial payment period, the SMP modification will become effective. A borrower who defaults on an SMP is eligible for an HMP. However, if a borrower contacts a servicer directly to inquire about converting to the HMP prior to the execution of the SMP Agreement, and the borrower meets all the eligibility requirements of the HMP, the servicer may offer the borrower the HMP.

The Program (SMP) was developed in collaboration with the Federal Housing Finance Agency (FHFA), the Department of Treasury, Freddie Mac, and members of the HOPE NOW Alliance. Under the program, servicers will use a streamlined loan modification process to help eligible borrowers better afford their monthly mortgage payments. The SMP applies to borrowers who have missed at least three monthly payments on their existing mortgages.

Source: FannieMae

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