Fannie Mae Announcement SVC-2010-3
February 5th, 2010
Fannie Mae has issued Announcement SVC-2010-03 Home Affordable Modification Program -- Program Update and Resolution of Active Trial Modifications
Home Affordable Modification Program – Program Update and Resolution of Active Trial Modifications
Introduction
In Announcement 09-05R, Reissuance of the Introduction of the Home Affordable Modification
Program, HomeSaver Forbearance™, and New Workout Hierarchy and Announcement 09-31, Updates and Clarifications to the Home Affordable Modification Program, Fannie Mae announced the eligibility, underwriting and servicing requirements for the Home Affordable Modification Program (HAMP). Under HAMP, servicers use a uniform loan modification process to provide eligible borrowers with sustainable monthly payments for the first lien mortgage loan. This Announcement 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 the new requirements outlined herein.
Fannie Mae is also providing 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 of Supplemental Directive 09-10. In Announcement 09-38, Miscellaneous Servicing Policy Changes, Fannie Mae directed servicers to comply with the requirements of Supplemental Directive 09-10 for all conventional mortgage loans with active trial periods scheduled to expire on or before January 31, 2010 that are either held in Fannie Mae’s portfolio, part of an MBS pool that is serviced under the special servicing option, or a shared-risk MBS pool for which Fannie Mae markets the acquired property.
This Announcement covers the following topics:
• Program Update
- Requesting Consideration for Modification
- Acknowledgment and Review of Initial Package
- Borrower Income/Asset Documentation and Verification of Eligibility
- Conversion from Trial to Permanent Modification
• Resolution of Active Trial Modifications
• Documentation Requirements
To view the Announcement in its entirety, 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.