Making Home Affordable Program Changes

The Making Home Affordable Program is becoming a little less cumbersome starting June 1, 2010. The U.S. Treasury Department announced it was streamlining the program to increase the number of successful home loan modifications.

Right now home loan borrowers are first put into a trial home loan modification plan and asked to produce more financial documentation. Starting June 1, 2010, banks and mortgage companies participating the the program will be required to collect all the borrower’s documents that are needed in the initial loan modification application.

Many borrowers who initially meet the requirements for a loan modification are complaining about having to submit the required documents several times because banks and mortgage companies are losing the documents.

Another change to the program is home loan borrowers looking to have their mortgage modified will only have to submit the last two pay stubs and a form allowing access to their tax returns. Right now, borrowers have to submit a W-2 form.