Loan Modification Specialist
What is 'Loan Modification Specialist'
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.
BREAKING DOWN 'Loan Modification Specialist'
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).