Mortgage Documents

Home Affordable Modification Agreement – Single-Family – Fannie

Mae/Freddie Mac UNIFORM INSTRUMENT (Form 3157)

Type of Instrument Instrument Revision Date

Modification Agreement 3/09 (rev. 10/10)

Instrument Last Modified Summary Page Last Modified

8/17/09 (Document modified) 8/17/09 (Authorized changes modified)
10/28/09 (Spanish translation posted) 10/28/09 (Spanish translations added)
10/4/10 (Document modified) 11/13/09 (Authorized changes added)
10/4/10 (Authorized changes modified)

Printing Instructions
The PDF document must be printed on letter size paper, using portrait format.

Use This Document For

State Lien Type Product Type Property Type Occupancy Type
All First All One- to four-unit, single- Principal residence
family dwelling

Required Changes
The following changes MUST always be made to this document:

1. Lenders MUST revise the document as necessary to comply with applicable federal, state and
local law.

Authorized Changes
The following changes MAY be made to this document at the lender’s option or MUST be made
under certain circumstances only:

1. Lenders MUST insert the following new Section 1.H. if the borrower previously received a
Chapter 7 bankruptcy discharge but did not reaffirm the mortgage debt under applicable law: 

I was discharged in a Chapter 7 bankruptcy proceeding subsequent to the

execution of the Loan Documents.  Based on this representation, Lender agrees
that I will not have personal liability on the debt pursuant to this Agreement.

[Spanish Translation]

Obtuve una eliminación de deuda en virtud de un procedimiento de quiebra bajo

el Capítulo 7 con posterioridad a la suscripción de los Documentos del

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 Préstamo. En base a esta declaración, el Prestador acuerda que no tendré
responsabilidad personal por la deuda en virtud de este Acuerdo.

2. Lenders MUST insert the following at the end of the first sentence in Section 3.B., after the
word, “Loan” if the terms of the loan modification include principal forgiveness:

and less Principal in the amount of $_______ which has been forgiven.

[Spanish Translation]

y menos Principal por la suma de $_______, el que ha sido condonado.

3. Lenders MUST amend the document as follows if the terms of the loan modification include
a principal deferral:

(a) Revise the document as necessary to comply with applicable federal, state and
local law governing mortgage loans with balloon payments.

(b) Delete the existing Section 3.C. and replace it with the following new Section
3.C.:

C. $____________________ of the New Principal Balance shall be deferred (the

“Deferred Principal Balance”) and I will not pay interest or make monthly payments on
this amount. The New Principal Balance less the Deferred Principal Balance shall be
referred to as the “Interest Bearing Principal Balance” and this amount is
$____________. Interest at the rate of _______% will begin to accrue on the Interest
Bearing Principal Balance as of _______________ and the first new monthly payment on
the Interest Bearing Principal Balance will be due on ______________. My payment
schedule for the modified Loan is as follows:
Years Interest Interest Rate Monthly Estimated Total Payment Number of
Rate Change Principal Monthly Monthly Begins On Monthly
Date and Escrow Payment* Payments
Interest Payment
Payment Amount*
Amount
[1-5] [2.00%] 00/00/0000 $0000.00 $000.00, $000.00, 00/00/0000 [60]
may adjust may adjust
periodicall periodicall
y y
[6] [3.00%] 00/00/0000 $0000.00 May adjust May adjust 00/00/0000 [12]
periodicall periodicall
y y
[7] [4.00%] 00/00/0000 $0000.00 May adjust May adjust 00/00/0000 [12]
periodicall periodicall
y y
[8] [5.00%] 00/00/0000 $0000.00 May adjust May adjust 00/00/0000 [12]
periodicall periodicall
y y
[9- [6.00%] 00/00/0000 $0000.00 May adjust May adjust 00/00/0000 [Insert
[40]] periodicall periodicall Remaining
y y months]

2
 *The escrow payments may be adjusted periodically in accordance with
applicable law and therefore my total monthly payment may change
accordingly.

The above terms in this Section 3.C. shall supersede any provisions to the
contrary in the Loan Documents, including but not limited to, provisions
for an adjustable, step or simple interest rate.

I understand that, if I have a pay option adjustable rate mortgage loan,

upon modification, the minimum monthly payment option, the interest-
only or any other payment options will no longer be offered and that the
monthly payments described in the above payment schedule for my
modified Loan will be the minimum payment that will be due each month
for the remaining term of the Loan. My modified Loan will not have a
negative amortization feature that would allow me to pay less than the
interest due resulting in any unpaid interest to be added to the outstanding
principal balance.

[Spanish Translation]

C. La suma de $____________________ del Nuevo Saldo del Principal

se diferirá (el “Saldo del Principal Diferido”) y no pagaré intereses ni
realizaré pagos mensuales sobre esta suma. Se hará referencia al Nuevo
Saldo del Principal menos el Saldo del Principal Diferido como el “Saldo
del Principal que Devenga Intereses” y dicha suma asciende a
$____________. El Saldo del Principal que Devenga Intereses
comenzará a devengar intereses a la tasa del _______% a partir del
_______________ y el primer nuevo pago mensual sobre el Saldo del
Principal que Devenga Intereses vencerá el ______________. Mi
programa de pagos correspondiente al Préstamo modificado será el
siguiente:

Años Tasa de Fecha de Monto Monto del Pago Mensual Fecha de Cantidad
Interés Cambio de del Pago Pago en Total* Comienzo de Pagos
Tasa de Mensual Reserva de Pago Mensuales
Interés de Mensual
Principal Estimado*
e
Intereses
[1-5] [2,00%] 00/00/0000 $0000,00 $000,00, se $000.00, se 00/00/0000 [60]
podrá ajustar podrá ajustar
periódicament periódicament
e e
[6] [3,00%] 00/00/0000 $0000,00 Se podrá Se podrá 00/00/0000 [12]
ajustar ajustar
periódicament periódicament
e e

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[7] [4,00%] 00/00/0000 $0000,00 Se podrá Se podrá 00/00/0000 [12]
ajustar ajustar
periódicament periódicament
e e
[8] [5,00%] 00/00/0000 $0000,00 Se podrá Se podrá 00/00/0000 [12]
ajustar ajustar
periódicament periódicament
e e
[9- [6,00%] 00/00/0000 $0000,00 Se podrá Se podrá 00/00/0000 [Indicar
[40]] ajustar ajustar meses
periódicament periódicament restantes]
e e

*Los pagos en reserva podrán ajustarse periódicamente de conformidad

con la ley aplicable y, por ende, mi pago mensual total podrá modificarse
en consecuencia.

Los términos precedentes de esta Sección 3.C. prevalecerán sobre

cualesquiera disposiciones en contrario contenidas en los Documentos
del Préstamo, incluyendo, sin limitación, alguna disposiciones relativas a
tasas de interés ajustables, escalonadas  o simples.

Entiendo que, si tengo un préstamo hipotecario con tasa de interés

ajustable y opción de pago, una vez efectuadas las modificaciones, la
opción de pago mensual mínimo, la opción de pago de intereses
únicamente, o cualquier otra opción de pago, dejará de ofrecerse, y que
los pagos mensuales descritos en el programa de pagos precedente para
mi Préstamo modificado constituirán el pago mínimo que será exigible
cada mes por el plazo restante del Préstamo. Mi Préstamo modificado no
tendrá una característica de amortización negativa que pudiera
permitirme pagar una suma inferior a los intereses exigibles resultando
que cualquier interés no pagado se adicione al saldo del principal
pendiente.

(c) Insert after Section 3.E. the following new Sections 3.F. and 3.G.:

F. I agree to pay in full the Deferred Principal Balance and any other
amounts still owed under the Loan Documents by the earliest of: (i)
the date I sell or transfer an interest in the Property, (ii) the date I pay
the entire Interest Bearing Principal Balance, or (iii) the Maturity
Date.

G. If I make a partial prepayment of Principal, the Lender may apply that

partial prepayment first to any Deferred Principal Balance before
applying such partial prepayment to other amounts due.

[Spanish Translation]

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 F. Yo acuerdo pagar la totalidad del Saldo de Principal Diferido y
cualquier otra suma aún adeudada en virtud de los Documentos del
Préstamo en una de las siguientes fechas, la que ocurra primero, (i) la
fecha en que Yo venda o transfiera un derecho sobre la Propiedad;
(ii) la fecha en que Yo pague la totalidad del Saldo de Principal que
Devenga Intereses o (iii) en la Fecha de Vencimiento.

G. Si realizo un pago anticipado parcial del Principal, el Prestador

podrá destinar dicho pago anticipado parcial primero a cualquier
Saldo del Principal Diferido antes de destinarlo a otras sumas
adeudadas.

4. Lenders MUST delete the existing Section 4.D. if, under applicable law, a servicer may not
establish an escrow account for the subject mortgage loan, and change, as necessary, any
cross-references to other paragraphs in Section 4 in the document. As an alternative, lenders
MAY delete Section 4.D. and replace it with “Intentionally Deleted” as follows:

D. Intentionally Deleted.

[Spanish Translation]

D. Eliminado intencionalmente.

5. Lenders MUST delete the existing Section 4.D. if the original loan documents did not include
standard Fannie Mae/Freddie Mac Uniform Instrument provisions for escrow items 1 and
replace it with the following:

1
For an example of the standard Fannie Mae/Freddie Mac Uniform Instrument escrow account provisions, refer to
Section 3 of the Uniform Covenants in the Uniform Security Instruments which can be obtained from the Legal
Documents page on www.efanniemae.com and the Single-Family Uniform Instruments page on
www.freddiemac.com.

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D. Funds for Escrow Items. I will pay to Lender on the day payments are due
under the Loan Documents as amended by this Agreement, until the Loan is paid
in full, a sum (the “Funds”) to provide for payment of amounts due for: (a) taxes
and assessments and other items which can attain priority over the Mortgage as a
lien or encumbrance on the Property; (b) leasehold payments or ground rents on
the Property, if any; (c) premiums for any and all insurance required by Lender
under the Loan Documents; (d) mortgage insurance premiums, if any, or any
sums payable to Lender in lieu of the payment of mortgage insurance premiums
in accordance with the Loan Documents; and (e) any community association
dues, fees, and assessments that Lender requires to be escrowed. These items are
called “Escrow Items.” I shall promptly furnish to Lender all notices of amounts
to be paid under this Section 4.D. I shall pay Lender the Funds for Escrow Items
unless Lender waives my obligation to pay the Funds for any or all Escrow Items.
Lender may waive my obligation to pay to Lender Funds for any or all Escrow
Items at any time. Any such waiver may only be in writing. In the event of such
waiver, I shall pay directly, when and where payable, the amounts due for any
Escrow Items for which payment of Funds has been waived by Lender and, if
Lender requires, shall furnish to Lender receipts evidencing such payment within
such time period as Lender may require. My obligation to make such payments
and to provide receipts shall for all purposes be deemed to be a covenant and
agreement contained in the Loan Documents, as the phrase “covenant and
agreement” is used in the Loan Documents. If I am obligated to pay Escrow
Items directly, pursuant to a waiver, and I fail to pay the amount due for an
Escrow Item, Lender may exercise its rights under the Loan Documents and this
Agreement and pay such amount and I shall then be obligated to repay to Lender
any such amount. Lender may revoke the waiver as to any or all Escrow Items at
any time by a notice given in accordance with the Loan Documents, and, upon
such revocation, I shall pay to Lender all Funds, and in such amounts, that are
then required under this Section 4.D.

Lender may, at any time, collect and hold Funds in an amount (a) sufficient to
permit Lender to apply the Funds at the time specified under the Real Estate
Settlement Procedures Act (“RESPA”), and (b) not to exceed the maximum
amount a lender can require under RESPA. Lender shall estimate the amount of
Funds due on the basis of current data and reasonable estimates of expenditures
of future Escrow Items or otherwise in accordance with applicable law.

The Funds shall be held in an institution whose deposits are insured by a federal
agency, instrumentality, or entity (including Lender, if Lender is an institution
whose deposits are so insured) or in any Federal Home Loan Bank. Lender shall
apply the Funds to pay the Escrow Items no later than the time specified under
RESPA. Lender shall not charge me for holding and applying the Funds,
annually analyzing the escrow account, or verifying the Escrow Items, unless
Lender pays me interest on the Funds and applicable law permits Lender to make
such a charge. Unless an agreement is made in writing or applicable law
requires interest to be paid on the Funds, Lender shall not be required to pay me

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 any interest or earnings on the Funds. Lender and I can agree in writing,
however, that interest shall be paid on the Funds. Lender shall provide me,
without charge, an annual accounting of the Funds as required by RESPA.

If there is a surplus of Funds held in escrow, as defined under RESPA, Lender

shall account to me for the excess funds in accordance with RESPA. If there is a
shortage of Funds held in escrow, as defined under RESPA, Lender shall notify
me as required by RESPA, and I shall pay to Lender the amount necessary to
make up the shortage in accordance with RESPA, but in no more than 12 monthly
payments. If there is a deficiency of Funds held in escrow, as defined under
RESPA, Lender shall notify me as required by RESPA, and I shall pay to Lender
the amount necessary to make up the deficiency in accordance with RESPA, but
in no more than 12 monthly payments.

Upon payment in full of all sums secured by the Loan Documents, Lender shall
promptly refund to me any Funds held by Lender.

[Spanish Translation]

D. Fondos correspondientes a Partidas en Reserva. Pagaré al Prestador en la

fecha de vencimiento de los pagos a ser efectuados de conformidad con los
Documentos del Préstamo, conforme fueran modificados por este Acuerdo, hasta
el pago total del Préstamo, un monto (los “Fondos”) para proveer para el pago
de montos adeudados por: (a) impuestos y contribuciones y otras partidas que
pudiesen adquirir prioridad sobre la Hipoteca como gravamen o cargo sobre la
Propiedad; (b) pagos de arrendamientos o rentas de terrenos sobre la Propiedad,
si hubiere; (c) primas por todos los seguros exigidos por el Prestador en virtud de
los Documentos del Préstamo; (d) primas del seguro hipotecario, si alguno, o
cualquier monto que deba pagar al Prestador en lugar del pago de las primas del
seguro hipotecario de conformidad con los Documentos del Préstamo; y (e)
cualquier cuota, cargo y contribucion extraordinaria a la asociación comunitaria
que el Prestador exija sean depositadas en reserva. Estas partidas se denominan
“Partidas en Reserva”. Presentaré inmediatamente al Prestador todas las
notificaciones de montos a pagar conforme a la presente Sección 4.D. Pagaré al
Prestador los Fondos correspondientes a las Partidas en Reserva, salvo que el
Prestador me dispense de mi obligación de pagar los Fondos correspondientes a
cualquiera o todas las Partidas en Reserva. El Prestador me podrá dispensar de
mi obligación de pagar al Prestador los Fondos correspondientes a cualquiera o
todas las Partidas en Reserva en cualquier momento. Dicha dispensa solamente
podrá realizarse por escrito. En el caso de dicha dispensa, pagaré en forma
directa, en el momento y lugar que corresponda, los montos adeudados por
cualquier Partida en Reserva respecto de la cual el Prestador haya dispensado el
pago de Fondos y, si el Prestador lo exige, presentaré al Prestador los recibos de
dicho pago dentro del plazo que el Prestador exija. Mi obligación de efectuar
dichos pagos y de presentar los recibos se considerará, a todo efecto, como un
convenio y acuerdo incluido en los Documentos del Préstamo, según la frase

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“convenio y acuerdo” se utiliza en los Documentos del Préstamo. Si estoy
obligado a pagar las Partidas en Reserva en forma directa, en virtud de una
dispensa, y no efectúo el pago del monto adeudado para una Partida en Reserva,
el Prestador podrá ejercer sus derechos conforme a los Documentos del
Préstamo y este Acuerdo y pagar dicho monto, y entonces Yo estaré obligado a
reembolsar al Prestador cualquiera de dichos montos. El Prestador podrá
revocar la dispensa en relación con cualquiera o todas las Partidas en Reserva
en cualquier momento, mediante una notificación cursada de conformidad con
los Documentos del Préstamo. Ante dicha revocación, pagaré al Prestador la
totalidad de los Fondos, en los montos que en ese momento se exijan conforme a
la presente Sección 4.D.

El Prestador podrá, en cualquier momento, cobrar y retener los Fondos en un

monto (a) que resulte suficiente para permitirle al Prestador aplicar los Fondos
en el momento especificado conforme a la Ley de Procedimientos de Liquidación
de Bienes Raíces (“RESPA”), y (b) que no supere el monto máximo que un
prestador puede exigir conforme a RESPA. El Prestador estimará el monto de los
Fondos adeudados sobre la base de los datos actuales y los estimados razonables
de los gastos de futuras Partidas en Reserva o de cualquier otro modo, en
conformidad con la ley aplicable.

Los Fondos se mantendrán en una institución cuyos depósitos se encuentren

asegurados por una agencia, instrumentalidad o entidad federal (incluido el
Prestador, si es una institución cuyos depósitos están asegurados de ese modo) o
en cualquier Federal Home Loan Bank. El Prestador aplicará los Fondos para el
pago de las Partidas en Reserva a más tardar en la fecha especificada conforme a
RESPA. El Prestador no me cobrará por retener y aplicar los Fondos, realizar un
análisis anual de la cuenta de reserva, ni por verificar las Partidas en Reserva,
salvo que el Prestador me pague intereses sobre los Fondos y que dicho cobro
esté permitido conforme a la ley aplicable. Salvo que se celebre un acuerdo por
escrito o que la ley aplicable exija el pago de intereses sobre los Fondos, no se le
exigirá al Prestador que me pague intereses ni ingresos sobre los Fondos. El
Prestador y Yo podemos acordar por escrito, no obstante, que se paguen intereses
sobre los Fondos. El Prestador me entregará, sin cargo, una contabilidad anual
de los Fondos, conforme lo exige RESPA.

Si existe un sobrante de los Fondos que se mantienen en reserva, según se define

conforme a RESPA, el Prestador me rendirá cuentas por los fondos excedentes de
conformidad con RESPA. Si los Fondos que se mantienen en reserva son
insuficientes, según se define conforme a RESPA, el Prestador me notificará según
lo exigido por RESPA, y Yo pagaré al Prestador el monto necesario para
compensar dichos fondos insuficientes de acuerdo con RESPA, pero en no más de
12 pagos mensuales. Si se produce una deficiencia en los Fondos que se
mantienen en reserva, según se define conforme a RESPA, el Prestador me
notificará según se exija conforme a RESPA, y Yo pagaré al Prestador el monto

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 necesario para compensar dicha deficiencia de acuerdo con RESPA, pero en no
más de 12 pagos mensuales.

Al efectuarse el pago total de todos los montos garantizados por los Documentos
del Préstamo, el Prestador me reembolsará en forma inmediata cualesquiera
Fondos que se encuentren en su poder.

6. Lenders MUST add Mortgage Electronic Registration Systems, Inc. (MERS) to the signature
lines at the end of the document as follows if the Modification Agreement must be recorded,
the original mortgage loan was registered with MERS, and MERS was named in the security
instrument as the nominee for the lender:

_______________________________
Mortgage Electronic Registration Systems, Inc. – Nominee for Lender

[Spanish Translation]

_______________________________
Mortgage Electronic Registration Systems, Inc. – Persona designada para el
Prestador

7. Lenders MUST revise the document as necessary if a term extension is not permitted under
the applicable pooling and servicing agreement or other investor servicing agreement, and
the mortgage loan is reamortized with a balloon payment due at maturity. Such revision
must comply with applicable federal, state and local law.

8. Lenders MUST insert the following new Section 4.P. if the original loan was a first-lien
home equity loan or line of credit and the borrower has the right to borrow new funds under
the home equity loan or line of credit:

P. If my Loan Documents govern a home equity loan or line of credit, then I

agree that as of the Modification Effective Date, I am terminating my right to
borrow new funds under my home equity loan or line of credit. This means that I
cannot obtain additional advances, and must make payments according to this
Agreement. (Lender may have previously terminated or suspended my right to
obtain additional advances under my home equity loan or line of credit, and if so,
I confirm and acknowledge that no additional advances may be obtained.)

[Spanish Translation]

P. Si mis Documentos del Préstamo gobiernan un préstamo sobre el capital

acumulado en la vivienda o línea de crédito, Yo acuerdo que a partir de la Fecha
de Vigencia de las Modificaciones, Yo doy por terminado mi derecho a pedir
prestado nuevos fondos bajo mi préstamo sobre el capital acumulado en la
vivienda o línea de crédito. Esto significa que no puedo obtener adelantos
adicionales, y debo hacer los pagos de conformidad con este Acuerdo. (El

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 Prestador pudo haber terminado o suspendido previamente mi derecho de
obtener adelantos adicionales bajo mi préstamo sobre el capital acumulado en la
vivienda o línea de crédito, y de ser así, Yo confirmo y reconozco que no podré
obtener adelantos adicionales.)

9. Lenders MAY include at the bottom of each page “initial lines” on which borrowers may
insert their initials to acknowledge that all pages of the document are present. If these lines
are added, lenders MUST require the borrowers to initial the lines on each page of the
document.

10. Lenders MAY adjust cross-references to section, paragraph, or page numbers, if needed to
reflect changes in section, paragraph, or page numbers that result from adding, modifying, or
deleting certain language in accordance with another authorized change.

Other Pertinent Information

Any special instructions related to preparation of this document, use of special signature forms,
required riders or addenda, etc. are discussed below.

1. If the borrower is an inter vivos revocable trust, we may require: a special rider, a
different signature form for the trustee signature, and a special signature acknowledgment
for the settlor/credit applicant(s). Lenders are responsible for making any modifications,
including the use of different terminology, needed to conform to the signature forms
customarily used in the applicable jurisdiction and will be held fully accountable for the
use of any invalid signature form(s).

- Each of the trustees must sign this document in a signature block substantially
similar to the following, which should be inserted in the Borrower signature lines.

___________________________, Trustee of the __________________________ Trust

under trust instrument dated ___________________________, for the benefit of
_____________________________ (Borrower).

[Spanish Translation]

___________________________, Fiduciario del Fideicomiso

__________________________ en virtud del instrumento de fideicomiso de fecha
___________________________, en beneficio de _____________________________
(Deudor).

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