Treasury Department and HUD HAMP Update

January 29th, 2010

The U.S. Department of the Treasury and Department of Housing and Urban Development (HUD) has released Supplemental Directive 10-01 titled Home Affordable Modification Program – Program Update and Resolution of Active Trial Modifications

Background
In Supplemental Directive 09-01, the Treasury Department (Treasury) announced the eligibility,
underwriting and servicing requirements for the Home Affordable Modification Program
(HAMP). Under HAMP, servicers apply a uniform loan modification process to provide eligible
borrowers with sustainable monthly payments for their first lien mortgage loans. 
This Supplemental Directive amends key features of the program. A significant program change is a
requirement for full verification of borrower eligibility prior to offering a trial period plan.
Effective for all HAMP trial period plans with effective dates on or after June 1, 2010, a servicer
may only offer a borrower a trial period plan based on verified income documentation in
accordance with this Supplemental Directive.

This Supplemental Directive also provides guidance to assist servicers in making HAMP
eligibility determinations for borrowers currently in active trial period plans, including those
borrowers subject to the temporary review period required by Supplemental Directive 09-10.

This Supplemental Directive provides guidance to servicers of first mortgage loans that are not
owned or guaranteed by Fannie Mae or Freddie Mac (Non-GSE Mortgages). Servicers of first
mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac should refer to the
related HAMP guidelines issued by the applicable GSE.

To view the Treasury Department's Supplemental Directive in its entirety, please click here.

To view HUD's Press Release, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 700 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.

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