Fannie Mae Lender Letter 2010-07
June 4th, 2010
Fannie Mae released Lender Letter 2010-07 titled, Extension to Fannie Mae’s Alternative Modification™ to the Home Affordable Modification Program
Extension to Fannie Mae’s Alternative Modification™ to the Home Affordable Modification Program
Introduction
In Lender Letter LL-2010-04, Fannie Mae’s Alternative Modification to the Home Affordable Modification Program, Fannie Mae introduced an alternative to the Home Affordable Modification Program (HAMP) 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.
The purpose of this Lender Letter is to extend the eligibility timeline provided in LL-2010-04 and clarify certain requirements for participation in the Alternative Modification™ (Alt Mod™) program.
Revised Eligibility Timeline
A borrower who was sent an initial HAMP offer or started a HAMP trial period plan prior to May 17, 2010 and whose first trial period plan payment was scheduled for June 2010, or earlier, is eligible for the Alt Mod provided the modification complies with the requirements described in LL-2010-04 and the terms of this Lender Letter, and the case is submitted through the HomeSaver Solutions® Network on or before September 30, 2010, the final date of the Alt Mod program offering.
Eligible borrowers who failed to qualify for a permanent HAMP modification but successfully completed ALL of the trial period plan payments before LL-2010-04 was issued on March 18, 2010, must be sent an Alt Mod offer no later than June 18, 2010. For these borrowers who may have not continued to make all payments after receipt of the HAMP Borrower Notice (Notice of Non-Approval), servicers must first attempt to collect from the borrower all of the payments not received since the end of the trial period. To the extent that a borrower cannot make all of the post-trial period payments, the servicer may only capitalize up to two months of payments not received since the end of the trial period. Borrowers who are unable to submit ALL non-capitalized post-trial period payments will not be eligible for Alt Mod.
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.