Freddie Mac Bulletin 2010-14
June 18th, 2010
Freddie Mac released Bulletin 2010-14 titled, Amendment to Freddie Mac's HAMP Backup Modification Requirements.
Introduction
In Single-Family Seller/Servicer Guide (“Guide”) Bulletin 2010-11, we introduced the Freddie Mac HAMP Backup Modification (“HAMP Backup Modification”), an alternative solution to support Borrowers who were initially eligible for a Home Affordable Modification Program (HAMP) Trial Period Plan based on stated income but have subsequently been determined to be ineligible for a HAMP modification. We also announced a Cap-to-Reinstate modification option for Borrowers ineligible for a HAMP Backup Modification.
With this Guide Bulletin, we are revising certain eligibility, solicitation and reporting requirements for HAMP Backup Modifications. We are also revising the settlement timeline to submit a HAMP Backup Modification and Cap-to-Reinstate modification to Freddie Mac.
Servicers must comply with all requirements in Bulletin 2010-11 except as set forth below.
Eligibility requirements
The HAMP Backup Modification option applies to all active stated income HAMP Trial Period Plans with a Trial Period Plan Effective Date on or before May 1, 2010 (previously April 1, 2010).
Borrowers with HAMP Trial Period Plans reported as canceled prior to April 1, 2010 are ineligible. Borrowers with Trial Period Plans canceled on or after April 1, 2010 are eligible, provided the Trial Period Plan was canceled for one of the following reasons:
- The Borrower’s monthly housing expense-to-income ratio, based on verified income documentation, was less than 31%
- A HAMP Target Payment that is as close as possible to, but not less than, 31% of the Borrower’s gross monthly verified income could not be reached using the HAMP modification waterfall without violating the net present value requirement or principal forbearance limits; or
- The borrower failed to provide all income documentation required for a HAMP modification
For HAMP Trial Period Plans canceled on or after April 1, 2010 where the Borrower has not continued to make all payments after receipt of the HAMP Borrower Notice (Notice of Non-Approval), Servicers must attempt to collect from the Borrower all of the payments not received since the Trial Period Plan was canceled. Borrowers who are unable to submit ALL post-Trial Period payments will not be eligible for a HAMP Backup Modification.
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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.