On March 4, 2009, the U.S. Department of the Treasury announced details of the Home Affordable Modification program as part of the Making Home Affordable program. The Home Affordable Modification program is a loan modification program designed to reduce at-risk borrowers' monthly mortgage payments. Freddie Mac is pleased to play a leadership role by implementing this program. In recent weeks the Treasury announced that they are expanding the Home Affordable Modification program to include the use of short sales and deeds-in-lieu of foreclosure in the event a borrower cannot complete the modification process. They also announced a second lien program to help struggling borrowers lower their monthly payments on their second mortgage. We will provide more information about these changes in a future Single-Family Seller/Servicer Guide (Guide) Bulletin. Guide Bulletin UpdatesOur July 13, 2009, Guide Bulletin 2009-19 [PDF 45K] outlines the U.S. Department of the Treasury's modified Home Affordable Modification Program (HAMP) Trial Period and reporting requirements they published on July 6, 2009. Specifically, the Bulletin provides detailed information on the Trial Period and Modification Effective Dates and reporting to Freddie Mac and the program administrator.Previous Guide Bulletins provide requirements for Servicers to implement, underwrite, and service eligible Freddie Mac-owned mortgages under the program. We urge Servicers to thoroughly review the Guide Bulletins, which are available below, for complete requirements. The Home Affordable Modification program is effective immediately for mortgages originated on or prior to January 1, 2009, and will expire on December 31, 2012. Servicers should no longer solicit borrowers for a modification under the Streamlined Modification Program, and should instead begin to solicit eligible borrowers who are 31 or more days delinquent for a modification under the Home Affordable Modification program. Servicers should not solicit borrowers for this program who are less than 31 days delinquent. March 9, 2010 Revisions to HAMPRevisions were implemented to the Home Affordability Modification Program (HAMP) to tighten guidelines in favor of borrowers struggling with hardship. All servicers for loans owned or guaranteed by Fannie Mae and Freddie Mac are required to participate. Additional servicers are strongly encouraged to participate. Fannie Mae or Freddie Mac backed loans must now modify current mortgage payments including escrow to 31% of gross monthly income.Source(s): HAMP; Home Affordability Modification Program Consumer Mortgage Counseling Services; cmcsoa; www.cmcsoa.org, see "HAMP Guidelines" for full description of the changes in the program guidelines. |