Fannie Mae Lender Letter LL-2010-04
March 19th, 2010
Fannie Mae has issued Lender Letter LL-2010-04 titled,
Fannie Mae’s Alternative Modification to the Home Affordable Modification Program.
Introduction
In Announcement SVC-2010-03, Home Affordable Modification Program – Program Update and Resolution of Active Trial Modifications, servicers were instructed how to resolve active trial modifications under the Home Affordable Modification Program (HAMP) at the conclusion of the temporary review period on January 31, 2010. This Lender Letter introduces an alternative to the HAMP modification for those borrowers who were eligible for and accepted into a HAMP trial period plan but were subsequently not offered a HAMP permanent modification because of eligibility restrictions.
For mortgage loans in active HAMP trial period plans initiated prior to March 1, 2010, all Fannie Mae-approved servicers must consider the Alternative Modification™ (“Alt Mod™”) prior to the initiation of foreclosure for all eligible borrowers who were not offered a permanent HAMP modification after making payments under a HAMP trial period plan. All borrowers must meet the eligibility criteria outlined below. The policies in this Lender Letter apply to all conventional mortgage loans held in Fannie Mae’s portfolio and to mortgage loans that are part of an MBS pool that have the special servicing option or a shared-risk MBS pool for which Fannie Mae markets the acquired property. A borrower that entered into a trial period plan prior to March 1, 2010 will be considered eligible for the Alt Mod as long as the case is submitted through the HomeSaver Solutions® Network (HSSN) prior to the final date of the program offering, August 31, 2010.
To help servicers better understand Alt Mod, a servicer FAQ has been developed to complement the Lender Letter. Additionally, borrower-focused documentation -- including a servicer script, sample letters, FAQs, and related documents -- are now available to help servicers communicate this solution to borrowers. All are posted on the Alternative Modification page on eFannieMae.com.
To view the Lender Letter 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.