Interest Rate Increasing on Fannie Mae’s Standard Modification Program

Posted on Fannie Mae’s website this week, is a notice to servicers of a change in the Fannie Mae Standard Modification interest rate. The current rate, 4.375% will increase to 4.5% for modifications approved on or after October 14. “The Fannie Mae Standard Modification interest rate is not determined on a present schedule. The interest rate is subject to periodic adjustments based on an evaluation of prevailing market conditions.”

Fannie Mae’s Modification Program is “designed to help those borrows who are ineligible for the Home Affordable Modification Program.”

The following table offers a historical snap shot of interest rate adjustments for the Fannie Mae Standard Modification Program including the newly announced adjustment.

Fannie Mae

Servicers must employ the appropriate rate based on the effective date of the Fannie Mae Standard Modification.  The rates are only for conventional loans.

https://www.fanniemae.com/singlefamily/fannie-mae-modification

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