Introduction

This Announcement introduces the Payment Reduction Plan™ (PRP). The PRP will replace the HomeSaver Forbearance™ (HSF) program in Fannie Mae’s Workout Hierarchy. The goal of the PRP is to allow for additional time to identify a permanent foreclosure prevention solution for a borrower who has encountered a financial hardship while having the borrower maintain a payment stream.

Purpose

The purpose of a PRP is to provide a borrower with temporary payment relief while the servicer and the borrower work together to find the appropriate permanent foreclosure prevention solution. Under a PRP, the servicer can reduce a borrower’s monthly principal and interest (P&I) payment by up to 30 percent for up to six months.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.