Modifications Provide Relief for Troubled Borrowers
As default, delinquency, and foreclosures increase, and variable interest rates begin to adjust, borrowers are searching for relief from the financial burden caused by a slumping housing market and rising interest rates. Many troubled homeowners are turning to loan modifications for help. Though available for years, loan modifications are increasing in popularity and offer borrowers the assistance they’re looking for.
Loan modifications give borrowers an opportunity to modify their existing loan to take advantage of more favorable terms. Loans are typically modified in one of four ways:
- Modifying to a fixed interest rate loan
- Modifying to an interest-only fixed rate loan
- Modifying to extend the loan term
- Modifying to extend the fixed period of an adjustable rate loan
Each of these modification options provide varying degrees of payment relief to over-extended borrowers by either lowering their monthly mortgage payments or ensuring their current mortgage payments won’t increase due to a rate adjustment. Loan modifications also give lenders a lifeline they can extend borrowers to help avoid costly foreclosures.
While the federal and state governments work towards a solution to extend relief for troubled homeowners, loan modifications present a quick and easy fix that might accommodate many borrowers.
Wolters Kluwer Financial Services currently offers several options for lenders interested in loan modifications, including all of the Fannie Mae, Freddie Mac, and FHA loan modification programs.
Learn more about developing a best practices approach to your loan modification documentation and request a free document package needs assessment.
Don’t Miss Us at MBA’s National Technology in Mortgage Banking Conference & Expo, March 16 - 19 in Dallas, Texas
Visit our booth (#405), talk with industry experts, and discover ways to breathe new life into your compliance program with:
- Rapid loan modification implementation,
- Simplified closing documents,
- e-Disclosure workflow management,
- Outsourced document preparation,
- Automated state consumer lending compliance,
- HMDA submission analysis,
- Fraud detection and mitigation,
- And more.
Join us on Monday, March 17 from 10:30 A.M. - NOON for “Strategies for Mitigating Third Party Origination Risk.” You’ll learn how market-leading lenders are taking advantage of third-party originator scalability, while using technology to minimize their risk. Chris Burckhardt, Senior Vice President and Chief Information Officer of Pulte Mortgage, LLC will moderate the session, with speakers Jay Levine, Chief Technology Officer, Wolters Kluwer Financial Services; Daryl Hall, CRA/Community Development Analyst, Fifth Third Bank; Stanley M. Street, President, Street Resource Group; and Teresa Yow, Chief Information Officer, Synovus Mortgage Corp.
We’re a proud sponsor of the Risk Management Session Track and the Internet Center. For more information about MBA’s National Technology in Mortgage Banking Conference & Expo, or to register, click here.
Look What I Read on ComplianceHeadquarters.com!
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Log on to ComplianceHeadquarters.com today and sign up for our compliance email alerts.
Reminders
- Want to take a closer look at SDX-Secure Document Exchange but missed the live demonstrations? It’s never too late to watch the recorded version.
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- We welcome any comments or suggestions for this newsletter. Please forward any to Angela Coenen at angela.coenen@wolterskluwer.com.
