HUD ML 2010-11 Availability of Treasury Success Payments for FHA-HAMP Modifications
March 29th, 2010
The U.S. Department of Housing and Urban Development (HUD) has issued Mortgagee Letter 2010-11 titled,
Availability of Treasury Success Pyaments for FHA-HAMP Modifications.
TO: ALL APPROVED MORTGAGEES
SUBJECT: AVAILABILITY OF TREASURY SUCCESS PAYMENTS FOR FHAHAMP
MODIFICATIONS
The Treasury Department (“Treasury”) has issued Supplemental Directive 10-03
announcing that borrowers and servicers of qualified FHA-HAMP modified mortgages may be
eligible for Borrower Pay for Performance Success Payments and Servicer Pay for Success
Payments from Treasury. Under the Directive, FHA-Approved Servicers are eligible for Success
Payments only if they have executed a new or amended Servicer Participation Agreement and
related documents with Fannie Mae, in its capacity as financial agent for the United States as
designated by the Treasury Department, by October 3, 2010, and the FHA-HAMP mortgage meets
all FHA and Treasury requirements for these success payments.
A new loss mitigation program, FHA-HAMP was announced July 30, 2009, via Mortgagee
Letter 2009-23 and included in subsequent guidance issued in Mortgagee Letters 2009-35, 2009-39,
and 2010-04. In summary, FHA allows the use of a partial claim up to 30 percent of the unpaid
principal balance combined with a loan modification only after the mortgagor has successfully
completed a three month trial payment plan for the amount of the future modified mortgage
payment. Additionally, servicers receiving Servicer Pay for Success Payments from Treasury
($1,000 per year for up to 3 years), are also/still entitled to receive loss mitigation incentive
payments from FHA in accordance with the aforementioned Mortgagee Letters.
In accordance with the Directive, Success Payments are available from Treasury only if all
of these conditions are met:
1. The FHA-Approved Servicer has executed a new or amended Servicer Participation
Agreement and related documents on or before October 3, 2010;
2. The FHA-insured mortgage was originated on or before January 1, 2009;
3. The FHA-HAMP mortgage modification was executed in accordance with Mortgagee
Letter 2009-23, and any subsequent HUD guidance; and,
4. The servicer and borrower have met the requirements as stated in Supplemental Directive
10-03, and other relevant HAMP guidance, including, but not limited to Supplemental
Directives and Frequently Asked Questions.
Servicers can find all HAMP documents referenced above on www.hmpadmin.com.
Questions regarding this Mortgagee Letter should be directed to our National Servicing Center Customer Service at (888) 297-8685. Persons with hearing or speech impairments may access this number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).
Sincerely,
David H. Stevens
Assistant Secretary for Housing –
Federal Housing Commissioner
To view the online Mortgagee Letter, 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.