Fannie Mae);/*1217622714470*/ announced yesterday that, similar to the changes Freddie Mac has decided to make, they will be increasing the cash incentives they pay to servicers who help homeowners avoid foreclosure.

“We are working closely with our loan servicing partners to make the process of helping borrowers keep their homes as streamlined as possible and we continue to enhance delegation to ensure decisions can be made quickly. These loss mitigation incentives encourage our servicers to implement workout solutions and drive better processing and response time,” said Jason Allnutt, vice president for credit loss management at Fannie Mae.
The added incentives include: – Doubling the incentive for repayment plans, where the borrower makes up the past-due payments over time, to $400 – Incentive payment of $700 for a loan modification where the terms of the loan are renegotiated – Incentive payments for short sales (pre-foreclosure sales) will range from $1,000 to $1,500 – Payments for deeds-in-lieu of foreclosure will increase to $1,000.
To learn more, click here);/*1217622679723*/.