Loan Modification Specialist

A A A

DEFINITION

A mortgage specialist who deals specifically with loan modifications. Loan modification specialists work with borrowers who are close to or have defaulted on their mortgage. A loan modification is simply an adjustment made to the terms of the existing loan to reduce the probability of a borrower defaulting. Common adjustments include: interest rate reductions, extension of length of loan term, change to loan type or a mix of all adjustments.

INVESTOPEDIA EXPLAINS

The popularity of loan modifications rose during the financial crisis of 2008-2009. President Obama rolled out programs that provided incentives for lenders to adjust the loans for the borrower to avoid default and prevent foreclosures. More information on loan modifications can be found at the website for the U.S. Department of Housing and Urban Development (HUD).


RELATED TERMS
  1. Loan-To-Value Ratio - LTV Ratio

    A lending risk assessment ratio that financial institutions and others lenders ...
  2. Bridge Loan

    A short-term loan that is used until a person or company secures permanent financing ...
  3. Loan Modification

    A modification to an existing loan made by a lender in response to a borrower's ...
  4. Jumbo Loan

    A mortgage with a loan amount exceeding the conforming loan limits set by the ...
  5. Forbearance

    A temporary postponement of mortgage payments.
  6. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes the monthly loan ...
  7. USDA Non-Streamlined Refinancing

    A mortgage-refinancing option offered by the United States Department of Agriculture ...
  8. No-Appraisal Mortgage

    A type of home loan used for refinancing for which the lender does not require ...
  9. No-Appraisal Refinancing

    A type of mortgage for which the lender does not require an independent, professional ...
  10. No-Appraisal Loan

    A mortgage that does not require an appraisal of the property’s current market ...
Related Articles
  1. Short Sell Your Home To Avoid Foreclosure
    Options & Futures

    Short Sell Your Home To Avoid Foreclosure

  2. Things To Know About The Home Modification ...
    Options & Futures

    Things To Know About The Home Modification ...

  3. Saving Your Home From Foreclosure
    Options & Futures

    Saving Your Home From Foreclosure

  4. 5 Things You Shouldn't Do During A Recession
    Budgeting

    5 Things You Shouldn't Do During A Recession

  5. Forecasting Mortgage Rates: Buy, Sell ...
    Investing Basics

    Forecasting Mortgage Rates: Buy, Sell ...

  6. The Rise And Fall Of The Shadow Banking ...
    Personal Finance

    The Rise And Fall Of The Shadow Banking ...

  7. What counts as
    Credit & Loans

    What counts as "debts" and "income" ...

  8. How does my debt-to-income (DTI) ratio ...
    Home & Auto

    How does my debt-to-income (DTI) ratio ...

  9. Financing Options For Buyers Of Foreclosed ...
    Credit & Loans

    Financing Options For Buyers Of Foreclosed ...

  10. What are the best ways to invest in ...
    Investing Basics

    What are the best ways to invest in ...

comments powered by Disqus
Hot Definitions
  1. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  2. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  3. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  4. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  5. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  6. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
Trading Center