HAMP Update NPV Model Resources

June 4th, 2010

The U.S. Department of the Treasury released a HAMP Update titled, New and Updated Base NPV Model Resources Now Available.

HAMP UPDATE

New and Updated Base NPV Model Resources Now Available

Q2 2010 Base NPV Model Documentation Supplement
The Q2 2010 Base NPV Model Documentation Supplement, updated June 2, 2010, is available on HMPadmin.com for Home Affordable Modification Program (HAMP) servicers to implement for use beginning July 1, 2010. The Supplement provides updated data on REO discount, home price history and projection of 110 local housing markets, foreclosure/REO costs and timelines, and home price decline protection payment used in the base NPV model.

The Base NPV Model Test Cases -- which include sample loans with fictional data that illustrate the building blocks of the cash flow calculated in the base NPV model -- also have been updated to reflect the Q2 2010 Base NPV Model Documentation Supplement.

Important Actions for Servicers

  • HAMP-registered servicers currently using the base NPV model that has been implemented or customized* for their own systems should incorporate the new Q2 2010 Base NPV Model Documentation Supplement for use beginning Thursday, July 1, 2010. (*Servicers with at least a $40 billion servicing book may customize the base NPV model.)
  • Servicers must continue using the appropriate supplement data tables from prior quarters to fulfill model versioning requirements (i.e., the 2010 Q1 and 2009 Q4, Q3, Q2, and Q1 supplement data tables).

New Base NPV Model Compliance Handbook
A new Base NPV Model Compliance Handbook, providing detailed information on proper use and, if applicable, implementation of the base NPV model, is now available on HMPadmin.com. The handbook, to be used in conjunction with all appropriate HAMP resources, will assist servicers utilize the base NPV model consistent with HAMP guidance. The handbook also outlines MHA-Compliance (MHA-C) expectations for use of the base NPV model by participating servicers.

The Base NPV Model Compliance Handbook is a compilation of HAMP-related guidance and policies, previously communicated to participating servicers, governing servicer participation in HAMP for all non-GSE mortgages. Servicers of mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac should refer to the relevant guidance issued by the applicable GSE.

Questions?
Contact the HAMP Solution Center at support@hmpadmin.com or 1-866-939-4469.

To view the online HAMP Update, 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.


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