Announced in April, the new program offered by Freddie Mac and Fannie Mae offers principle reduction to certain seriously delinquent, underwater borrowers whose home values are less than the amount of mortgages owed. FHFA estimates that approximately 33,000 homeowners meet the criteria for the program.
Ditech’s approach will include outreach and assistance through the HLP collaborative communication platform that is designed to integrate HUD-approved non-profit housing counselors seamlessly and securely with Ditech’s mortgage servicing operations, enabling counselors to more easily help homeowners who may qualify for the program.
“We are committed to rolling out FHFA’s Principal Reduction Modification Program to reach and provide personal assistance to eligible homeowners whose loans we service, in an effort to help them avoid foreclosure and stay in their homes,” said David Schneider, president of Ditech.
“In keeping with our goal to become a lifelong partner in homeownership, we want to help families and individuals to take advantage of this program when that is the right option for them. HLP’s advocacy consortium, along with its broad connections with the housing advocacy community, will also allow Ditech to provide our customers access to HUD-approved nonprofit housing counseling in an effort to prevent foreclosure. HLP’s platform will be an integral part of our effort to reach and assist those who are eligible for the loan forgiveness program,” said Schneider.
Residential mortgage lender Ditech Financial (Ditech) and HLP, a nonprofit that unifies efforts to help families achieve and sustain homeownership, have entered into an agreement that will implement a consumer outreach effort to distressed homeowners that are eligible for the Federal Housing Finance Agency’s (FHFA) new Principle Reduction Modification Program.