GSEs Raise Fixed Interest Rate for Standard and Streamlined Mods

GSEs Raise Fixed Interest Rate for Standard and Streamlined Mods

07/31/2013 BY: ESTHER CHO

 

Fannie Mae and Freddie Mac are raising the fixed interest rate for non-HAMP (Home Affordable Modification Program) modifications.

The new interest rate adjustments serve to reflect current market conditions and will be applied to standard and streamlined modifications.

Starting September 1, 2013, interest rates for modifications will rise from 4 percent to 4.625 percent. The new interest rate will also be used when evaluating borrowers for trial period plans for standard and streamlined modifications. The 4 percent rate was the standard since December 1, 2012. Prior to that, the rate was 4.25 percent from September 1 to November 30, 2012 and 4.625 percent from July 1 to August 31, 2012.

Non-HAMP mods can be used for borrowers who are not eligible for HAMP or for those who defaulted on a HAMP modification.

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