Freddie Mac has again extended deadlines for borrowers who sought alternative loan modifications after dropping out from the government's Home Affordable Modification Program (HAMP).

Borrowers now must make the first payment on Freddie's HAMP Backup Modifications or Cap-to-Reinstate mods by Dec. 1. The original deadline was Aug. 1, and it had been postponed once before, to Sept. 1.

"As September 1 approached, we heard from many servicers asking for more time … as they continue to be challenged with large pipelines," Patricia McClung, Freddie's vice president of offerings management, wrote in a bulletin to mortgage servicers Monday announcing the latest extension.

The HAMP Backup Modification was introduced in June for borrowers who were initially approved for a trial mod under the government program, based on the incomes they reported to their servicers, but were subsequently deemed ineligible.

This could happen if the borrower didn't provide all the required income documentation, for example, or because their housing expenses ate up less than 31% of their verified incomes — and were thus insufficiently burdensome.

The terms of the HAMP Backup modification are similar to those of a Hamp mod, except borrowers do not receive incentive payments as they do in the government program. The Cap-to-Reinstate modification is offered to those who don't qualify for the Hamp Backup Modification.

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