Does anyone know if a loan mod will hurt FICO scores?

I’m a loan officer and have this nut to crack. I’ve negotiated 3 SS’s this year so far and was curious if doing a loan mod would hurt credit scores.

Please respond if you only know the answer, don’t want to give bad advice to my clients. Or, if you know where to find the answer i’ll take’em, thanks guys!

A loan mod does not affect the homeowners credit unless they are behind on payments.

I was under the impression the modified amount is “written off” which is notated in the credit history, and does affect the credit (similar to a credit card “charge off”)?

Writing down the principal balance is generally the most extreme of loan modifications. Lenders are more app to change the interest rate, forgive late fees, capitalize past due amounts etc. The primary driver of your clients credit score is going to be their payment history. If their lender simply alters the original terms of their loan the credit report/score should not be affected.