What is a Mortgage Restructure?

You may have been hearing more and more about this and with good reason. As millions of homeowners have become saddled with mortgages they no longer have the ability to refinance, there may be only one solution: mortgage restructure.

A Mortgage Restructure, Loan Modification or Loan Adjustment is when the lender of the note restructures the existing mortgage to make it more affordable. Some Lenders may be willing to reduce the loan amount, interest rate and payments. Every case and scenario is different and it all depends on who owns your loan, what your dti and ltv's are and why you need or are requesting a restructure.


It's important to educate yourself on the mortgage markets today as well as how and why a mortgage lender may restructure your mortgage. Is it because they maybe want to avoid a lawsuit, foreclosure or because it may be financially best for them similar to when a lender refinances a mortgage.  It's actually all of the above. What you should be aware of is that your mortgage company may be acting as a "debt collector". Many mortgage lenders today are actually a mortgage servicer acting on behalf of the investor/owner of your mortgage. More importantly, the servicer's loyalty and fiduciary duty is to their client; whom is the investor/owner of the loan and NOT you (the homeowner). The investor/owner of the loan hires the servicer to collect on a  debt and service their asset. So when your trying to negotiate or process your own restructure or modification, be conscious of this as they will act in their clients best interest because it is their client whom is employing them. 

Restructure vs. Refinance

A restructure shouldn’t be confused with a refinance. With a mortgage refinance, you’re paying off your existing loan with a new mortgage and a new interest rate, loan amount and monthly payment. A restructure changes the terms of your existing mortgage. Borrowers who choose to refinance aren’t required to stick with their current lender; they can comparison shop. A mortgage restructure does not change your lender.

Applying for a Mortgage Restructure might be advantageous to homeowners who aren’t eligible to refinance.

Every mortgage company, servicer and investor has its own application process that requires borrowers to supply documentation to demonstrate they can afford a restructured mortgage but not everyone will qualify. To increase your changes of getting approved you should strategize and have a game plan or work with a professional who is experienced and knowledgeable of the specific mortgage restructure servicer and investor guidelines as well as consumer protection laws.

A Mortgage Restructure may be an option if:

  • You are ineligible to refinance

  • You are facing hardship

  • You are current or behind on your mortgage.

Mortgage Companies Restructure Loans...

When borrowers have financial difficulties and don’t have alternative financing options, lenders are open to negotiate. We will demonstrate to lenders why it is in their interest to work out a new arrangement with you. Lenders will often be willing to reduce the interest rate, monthly payment amounts and loan term to avoid foreclosure or legal liability.

Please Beware of Scams

Unfortunately, there are people who aim to wrongly profit off consumers facing difficult times by concocting scams related to mortgage assistance.

Mortgage assistance scams typically relay false promises of saving you from foreclosure, and instead, take your money.


Scammers may engage in the following activity:

  • Ask you to pay high upfront fees to start service. 

  • Ask you to sign over the title to your home.

  • Ask you to sign paperwork that you don’t understand.

  • Guarantee to grant you a loan restructure.

  • Request that you begin making mortgage payments to them instead of your lender or servicer.

Some Helpful Tips:

  • Don’t pay an advanced fee

  • Don’t send your mortgage payments to anyone but your lender (or servicer).

  • Don’t fall for official-sounding names, such as the “Federal Assistance Program,” for example.

It’s imperative that you do your due diligence when seeking mortgage assistance and ensure you are receiving legitimate assistance.

Parties Involved in Mortgage Servicing

Before you can understand what a mortgage restructure is, you first must understand the basic parties involved in mortgage servicing.

Lender or originator

A lender or originator is the party that loaned you the money for your home loan.


Often, the originator— the original owner of the loan—subsequently sells the loan to a new owner, who is called an investor (can switch from time to time).


servicer is the company that handles the loan account. The servicer collects and processes the monthly payments, manages the escrow account (if there is one), processes loan modification applications, and supervises the foreclosure process when borrowers don’t make their payments. Sometimes, the loan owner also acts as the servicer. Other times, the owner sells the right to service the loan to another company. Your Servicer can also switch from time to time as well.

Who or What Are Fannie Mae and Freddie Mac?

The Federal National Mortgage Association (FNMA), also called “Fannie Mae,” and the Federal Home Loan Mortgage Corporation (FHLMC), also called “Freddie Mac,” are government-sponsored enterprises that own or back (guarantee) many mortgages in the United States.

Here’s how Fannie Mae and Freddie Mac play a role in the mortgage market:

A borrower usually takes out a loan to buy a home from a bank or mortgage company. Most of the time, though, the original lender won’t keep the loan. Instead the lender sells the loan to a bank or investor—like Fannie Mae or Freddie Mac—on what’s commonly known as the secondary mortgage market. After purchasing a loan from a bank or mortgage company, Fannie Mae or Freddie Mac either keep the mortgage in their portfolio or package the loan with other loans into mortgage-backed securities, which are then sold to private investors. Fannie Mae and Freddie Mac sometimes guarantee the loans that they sell to investors, which means they make sure that an investor gets paid on the loan even if the borrower defaults. (Learn more about Fannie Mae and Freddie Mac.)


What We Do









The New "Flex" Program

This program is the successor to the Home Affordable Modification Program (HAMP), which expired recently. Each lender will have different requirements before they’ll consider a restructure.

However, one of the more common mortgage restructure options is the “Flex” launched in October 2017 by government-sponsored enterprises Fannie Mae and Freddie Mac.

Remember: Conventional mortgages follow guidelines set forth by Fannie Mae and Freddie Mac, and these enterprises often purchase mortgages from lenders, helping those lenders continue to provide loans to consumers. You can use the loan lookup tools offered by Fannie and Freddie to find out whether one of the enterprises owns your loan, making you eligible for the restructure program.

Eligibility for Flex 

To be eligible for Flex , Fannie Mae or Freddie Mac must own your loan. (To find out if either Fannie Mae or Freddie Mac owns your loan, call your mortgage servicer or use the Fannie Mae and Freddie Mac online loan lookup tools.)

Also, you, your home, and your mortgage loan have to meet specific criteria, like:

  • the loan must be a conventional first mortgage

  • you must have a stable income that will support a monthly payment, and

  • you must have taken out your mortgage at least 12 months before being evaluated for a Flex Offer.

The requirements to get this type of offer are rather extensive and complicated, so you may want to consider consulting with a professional third party about how to maximize your chances and help influence your lenders underwriting for the outcome you are looking for.

What If Fannie Mae or Freddie Mac Doesn’t Own My Loan?

Even if Fannie Mae or Freddie Mac doesn’t own your loan—or if you don’t qualify for Flex  for some other reason—you might qualify for another program through your servicer. Servicers and investors normally offer their own in-house (called “proprietary”) modifications, loan restructure or loan adjustments, as well as forbearance agreements and repayment plans

Other Programs may be available such as: 

Proprietary, FHA-HAMP, VA-HAMP, Streamline, Helping Home Owners, Shared Appreciation "SAM", Apollo, "In-House" and much more.

To learn about the different options that might be available to you, call us Toll Free 1-855-499-7608

Need more details? 

We are here to assist. Contact us by phone, email or fill our contact us form!

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Whether you're buying your first home, refinancing your current mortgage, or contemplating whether a loan modification may be right for you, trust that the New Vision Direct Team will go to bat for you!

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Recent Results...


New payment - $1314.18 @ 3.625%
Old payment - $1,728.98 @ 5.000%
Monthly Savings - $414.80

-Valerie P.

New payment - $1410.72 @ 3.875% 

Old Payment - $2,331.90 @ 6.750%
Monthly Savings - $921.18

-Ariana B.

*The above are just recent client results and does not mean you will get the same results as everyone's specific situation is different .

Recent Results:

New payment - $1,314.18 @ 3.625%
Old payment - $1,728.98 @ 5.000%
Monthly Savings - $414.80

-Valerie P.


New payment - $1,410.72 @ 3.875% 

Old Payment - $2,331.90 @ 6.750%
Monthly Savings - $921.18

-Ariana B.

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Buying or refinancing a home takes time, patience, and, traditionally, a lot of paperwork. We’ve dismantled the old mortgage infrastructure and replaced it with innovative technology and far fewer hurdles.

Call Today: 1-855-499-7608

| New Vision Direct | 3951 Higuera St #2020 Culver City, CA 90232 | Phone: 1-855-499-7608 |

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New Vision Direct helps you prepare and process the application for mortgage assistance programs offered by Mortgage Companies. We are not a loan servicer, mortgage lender/broker, foreclosure consultant, debt adjuster or a law firm. It is not necessary to pay a third party to arrange for a loan modification or other form of forbearance from your mortgage lender or servicer. You may call your lender directly to ask for a change in your loan terms. Nonprofit housing counseling agencies also offer these and other forms of borrower assistance free of charge. A list of nonprofit housing counseling agencies approved by the United States Department of Housing and Urban Development (HUD) is available from your local HUD office or by visiting You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender or servicer. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us a fee for our services. We are not associated with the government, and our service is not approved by the government or your lender; and even if you accept this offer and use our service, your lender may not agree to change your loan.

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