Borrowers can now avail the Streamlined Modification Program

Fannie Mae servicers can now offer the borrowers with the Streamlined Modification Program (SMP). This will help the borrowers to prevent foreclosure. It is designed to modify the loans of a large number of borrowers who have defaulted their mortgage payments. The borrowers will have to meet the eligibility criteria and show financial hardship in order to get this modification. In SMP, the monthly principle and interest payments are reduced by the lender.