Let Valuation Tech Help Improve Your Collateral Valuation

Join this webinar to learn how technological advancements in valuation provide solutions to help lenders and servicers deliver more comprehensive offerings to their clients.

Talking proptech with FinLedger Director Holden Page

In this episode, Page discusses the hottest topics coming across FinLedger’s news desk. Topics include: the online banking market, what’s happening in the proptech space and recent private market deals.

engage.marketing 2021

We brought together the smartest minds in purchase marketing to share the insights, tactics and strategies that set the leaders apart. Watch the sessions on-demand now!

How Rocket Pro TPO continues to give its broker partners the upper hand

To remain competitive and create a better experience in this purchase environment, brokers need one thing above all: Speed. And there’s one lending partner that has the solutions and resources to give LOs just that.

Mortgage

Fannie Mae raising mortgage modification interest rate yet again

New rate effective July 14

Fannie Mae is set to raise the benchmark interest rate for its Standard Modification program for the second month in a row.

Beginning July 14, Fannie Mae will raise its required interest rate for standard modifications from 4.125% to 4.25%. The standard modification rate hasn’t been that high since Nov. 2014.

Last month, Fannie Mae increased its standard modification rate from 4% back to 4.125%, which was the designated rate from April 14 through May 14.

In May, Fannie dropped the interest rate from 4.125% to 4% but it’s now raising the rate for the second straight month.

Fannie Mae announced the change Tuesday in an email sent to its servicers.

According to Fannie Mae’s website, the Standard Modification program is “designed to help those borrowers who are ineligible for the Home Affordable Modification Program.” The new rate does not extend to HAMP borrowers.

In the note sent to servicers, Fannie said that servicers must use the new interest rate for any mortgage loan modification evaluation conducted on or after July 14.

When the program began in Jan. 2012, Fannie’s benchmark interest rate was 4.625%. Fannie lowered the interest rate to 4.25% in Sept. 2012, before dropping it to 4% on Dec. 1, 2012.

The interest rate stayed at 4% until Sept. 2013, when Fannie raised it back to 4.625%, before dropping it back to 4.5% in July 2014.

The interest rate progressively dropped from October 2014 until February 2015, falling from 4.5% to 4%, before Fannie raised it in April, and now, citing “prevailing market rates,” Fannie is raising it again.

Most Popular Articles

Will we ever see a “normal” housing market again?

The question on everyone’s minds: When will this hot housing market cool down? Arch MI investigates this and more in its Spring Housing and Mortgage Market Review.

Jun 22, 2021 By

Latest Articles

Buyside launches a new home valuation pages feature

After years of aggregating behavioral data from homebuyers and homesellers at the largest real estate brokerages in the country, Buyside is proud to announce the launch of their expansion into core & ancillary services by focusing on the homeowner.

Jun 24, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please