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Freddie Mac Flex Modification

The Freddie Mac Flex Modification® (Flex Modification) offers Servicers an easier, flexible way of helping more borrowers qualify for a loan modification in a changing housing environment.

Mortgage and Borrower Eligibility

Eligible Property Types

While the Flex Modification leverages the previously available Freddie Mac Standard and Streamlined Modifications, a few significant changes from the Standard Modification include:

  • The housing-to-income ratio component for borrowers less than 90 days delinquent has changed from less than or equal to 55 percent with a 10 percent floor to less than or equal to 40 percent.
  • No choice of amortization terms for borrowers with a mark-to-market loan-to-value (MTMLTV) ratio less than 80 percent.
  • You must now forbear principal down to a 100 percent MTMLTV ratio (not to exceed 30 percent of the unpaid principal balance rather than the 115 percent MTMLTV ratio previously allowed under Standard and Streamlined Modifications).

Evaluation Hierarchy

Servicers must follow the loss mitigation evaluation hierarchy as described in Single-Family Seller/Servicer Guide (Guide) Section 9201.2.

What Servicers Need to Do

Review Guide Chapter 9206 Modifications for the Flex Modification, including the eligibility requirements, modification terms, requirements for a streamlined offer for the Flex Modification, and processing and reporting requirements. 

We encourage you to bookmark this Freddie Mac Flex Modification webpage for information and reminders on the Flex Modification.

Training and Resources

We offer the following training and resources on the Flex Modification:

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