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Comprehensive Mortgage Loan Modification Program

SAFE wants to help sustain home ownership by ensuring your home affordability and assisting you in avoiding foreclosure. 

In order to do so, we have instituted our Comprehensive Mortgage Loan Modification Program to assist members, who, due to changes of income or increases in the payment of their existing mortgage, can no longer afford the full payment on their SAFE mortgage.  

These mortgages may be modified to reduce payments by extending loan terms and in some cases reducing interest rates or even deferring a portion of the principal balance.


In order to qualify for this program:

  • You must be currently unable to make the payments under the existing loan terms.
  • You must be willing and able to make payments under the modified loan terms.
  • The anticipated recovery under the modified loan terms must exceed the anticipated recovery through foreclosure (On a net present value basis).

Repayment Ability

In order to determine affordability, the "housing" ratio will be used, which is calculated by dividing the Mortgage payments including the monthly cost of property tax, home owners association dues and home insurance by your total Gross Monthly Income. 

The targeted housing ratio is 38% maximum. The income used to qualify must be documented.

The Maximum Principal

The maximum principal amount is equal to the original principal amount of the existing loan.

The principal may be increased only to capitalize:

  • accrued interest,
  • property taxes,
  • third party costs incurred in the ordinary course of servicing,
  • and escrow advances for taxes and insurance.

In no case will the loan balance be increased to exceed the original loan amount. Costs that would otherwise bring the capitalized loan balance in excess of the original loan amount will be waived.


The term may be extended for up to 40 years from the original date of the loan.

Payment or rate reductions will be for a minimum 5 year term.

Past Due Amounts

Interest and escrow amounts may be added to the principal balance up to the extent that the new principal balance does not exceed the principal balance of the original loan and a 38% housing ratio can be achieved.


Rates will be based on the current rate sheet rate for a fixed rate loan with no origination fee. Rates may be reduced below the current rate sheet rate in order to achieve the targeted housing ratio. In no case will the interest rate be less than 3%.

Any loan with an interest rate modified below the current market rate will be for a term of 5 years and will adjust a maximum of 1% per year thereafter until reaching the final market rate established at the time of the modification.

Principal Deferral

Principal may be deferred when the targeted housing ratio cannot be achieved with a reduced interest rate and 40 year term.

The amount deferred will carry zero interest and no monthly payments with the entire balance due in a balloon payment at the maturity of the modified loan.

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