Tag Archives: modification

FHA unveils 40-year loan modification option FHA’s COVID-19 loss mitigation options may soon include a 40-year loan modification option

The Federal Housing Administration (FHA) is moving to expand its COVID-19 loss mitigation “waterfall” by introducing a 40-year loan modification option and is asking the mortgage industry for input. The proposed rule, published by the Department of Housing and Urban Development late last week, would change repayment provisions for FHA borrowers, allowing lenders to recast a borrower’s total unpaid loan […]

Bank, nonbank mortgage modification rates diverge: Fitch

Modifications have begun in earnest as forbearance has receded, and it looks like banks are having the most success qualifying borrowers for it, according to recent studies. When the bulk of forbearance exits got underway between the third and fourth quarters last year, banks had higher modification rates than non-depositories, starting with 40% in the […]

California man pleads guilty to mortgage modification scam

Rodriguez, 47, of Laguna Niguel, Calif., pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison along with a maximum fine of $250,000 or twice the gross gain or loss from the offense, the US Attorney’s Office noted. According to a recent study, some parts of California […]