Financial Hardship Center

Financial Hardship Center

PenFed’s Financial Assistance Programs

President Obama recently announced the Administration's plan to further prevent foreclosures and assist borrowers with mortgage loan modifications. The Homeowner Affordability and Stability Plan focuses on reducing the number of foreclosures and making it easier for members to refinance loans.

Additionally, the U.S. Department of Housing and Urban Development (HUD) sponsors non-profit housing counseling agencies throughout the country that can provide advice on defaults, foreclosures, credit issues and other housing topics. For more information on agencies located near you, please call HUD at (800) 569-4287 or visit their website at

The government program has two components: "Home Affordable Refinance" and "Home Affordable Modification." The programs are designed to help bring relief to responsible homeowners who either have lost equity in their homes and are unable to refinance or are struggling to make their mortgage payments.

PenFed is committed to providing service to all members with PenFed mortgages who are experiencing a hardship. You may be eligible to participate in these programs, regardless of whether your loan has been sold to Fannie Mae. All of the programs require significant documentation to establish eligibility.

First Mortgages

Home Affordable Modification Plan – Fannie Mae-owned loans

Our goal is to help keep you in your home. If you are currently delinquent or struggling to keep current, you may be eligible for the Home Affordable Modification on your current loan. This program is designed to help homeowners avoid foreclosure. To be eligible for this program, you must go through a screening process to determine if you have a significant financial hardship. The first step is to determine if your PenFed loan is owned by Fannie Mae.

If so, you must have one of the following hardships to qualify for this program:


  • A reduction or loss of income
  • Change in household financial circumstances
  • Increase in expenses, and excessive monthly debt payments
  • Material change in circumstances


Please download and complete the Uniform Borrower Assistance Form and submit all of the requested documentation.

Please download and complete the instructions for completing the form.

Please click here for the 4506T-EZ Form that is required to be returned with the application.

Please click here for First Mortgage Servicing Fees and Charges.

Assistance for borrowers facing hardship – non Fannie Mae owned loans

If your PenFed mortgage loan is not owned by Fannie Mae, you may qualify for our in-house Loan Modification program. Please download and complete the application and submit all of the requested documentation.

I don’t have a hardship I just want to refinance and my house has lost value. What are my choices?

Check to see if your loan qualifies for a Rate Modification.

You may be eligible to qualify for a simple modification of your loan.

Loan qualifications:


  • Conventional Adjustable Rate Mortgage (ARM loans) are eligible. All other types of loans are not eligible.
  • Loan must be 100% owned by PenFed. – The loan, or any portion of the loan, cannot have been sold, or committed to be sold to Fannie Mae, or any other public or private investor.
  • No late payments showing on first mortgage payment history over last 12 months.


Please click here for Loan Modification Fees associated with Hardship Requests.

A simple ARM loan rate modification is subject to a fee of 1% of your unpaid principal balance. Call the Mortgage Servicing Department if you believe your loan qualifies.

Apply for a loan to refinance.

We know home values across the country have declined. However, no one knows what the actual value of your home will be until an appraisal is completed. Since an appraisal is only done once someone has applied you have to decide if investing in an appraisal is worth the expense (most are less than $375) considering the money you would save if you lower your interest rate.

Current regulations on first mortgages require us to order the appraisal through a third party service so we cannot use an appraisal you obtain on your own or one from another lender.

Click here to apply.

All Other Loans

Assistance for borrowers seeking relief with PenFed consumer loans

Are you experiencing financial hardship and finding it difficult to make your PenFed consumer loan payments? We may be able to help. Please download and complete the application and submit all of the requested documentation.