To help more borrowers in distress stay in their homes and avoid foreclosure, Fannie Mae added the streamlined modification program in 2013. The streamlined program allows delinquent borrowers to receive mortgage modifications without submitting paperwork. This analysis of 2012 – 2015 data shows that streamlined modifications have a higher take-up rate but a lower success rate than standard modifications, and that the streamlined approach increases the total success of mortgage modifications by 34 percent. If this approach had been used from 2012–15, it would have prevented approximately 6,100 additional foreclosures each year on Fannie Mae mortgages. This provides compelling evidence that the streamlined approach is beneficial to loss mitigation and the new 2017 Flex Mod program with its streamlined modification approach is a positive innovation.
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