Participants in the program are expected to see an average payment reduction of 20%, according to Freddie Mac. A large number of borrowers who are at least 60 days overdue are qualified, as well as those who are current or less than 60 days delinquent.
"We're proud to announce the Flex Modification program, a carefully considered and transparent alternative for homeowners who want to avoid foreclosure in today's post-crisis mortgage environment," said David Lowman, executive vice president of Freddie Mac's Single-Family Business.
"We believe it strikes the appropriate balance between borrower relief and economic responsibility."
Borrowers must take advantage of the program by Oct. 1, 2017. While HAMP will expire soon, Freddie Mac’s Standard and Streamlined Modifications will remain available until Flex Modification is implemented.
Morning Briefing: Fannie, Freddie announce foreclosure protection program
Freddie Mac announced Wednesday its new foreclosure program – the Freddie Mac Flex Modification – made to offer substantial reductions to monthly mortgage payments of American families. It will replace Freddie Mac’s Home Affordable Modification Program, which expires this month.