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d. Modification of a Current Loan (05/09/2022)
A Lender may enter into a modification agreement with a Borrower without prior permission from HUD on a Loan that is current. A modification agreement:
• requires a written agreement signed by the Borrower;
• need not be recorded;
• may only decrease the interest rate;
• must not advance new funds; and
• does not require any further insurance reporting to HUD, but all documentation of the modification must be submitted if an insurance claim is filed.