Loan Modification Specialist

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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).

RELATED TERMS
  1. Jumbo Loan

    A mortgage with a loan amount exceeding the conforming loan limits ...
  2. Loan-To-Value Ratio - LTV Ratio

    A lending risk assessment ratio that financial institutions and ...
  3. Bridge Loan

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

    A modification to an existing loan made by a lender in response ...
  5. Forbearance

    A temporary postponement of mortgage payments.
  6. Mortgage Modification

    A permanent change in a homeowner's home loan terms that makes ...
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. How Our Borrowing Habits Have Changed ...
    Credit & Loans

    How Our Borrowing Habits Have Changed ...

Hot Definitions
  1. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  2. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  3. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  4. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  5. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  6. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
Trading Center