HAMP Update
July 12th, 2010
The U.S. Department of the Treasury issued a HAMP Update titled, Interim Unemployment Program Reporting.
HAMP Update: Interim Unemployment Program Reporting
Supplemental Directive 10-04, Home Affordable Unemployment Program, issued on May 11, 2010, introduced payment relief for homeowners whose hardship is related to unemployment. The Home Affordable Unemployment Program (UP) offers eligible borrowers a forbearance plan to temporarily reduce or suspend their mortgage payments.
The effective date of this program for all non-GSE servicers is August 1, 2010 (see HAMP Waiver #20100603); however, servicers may offer an UP forbearance plan to eligible borrowers earlier. System enhancements that will allow for the reporting of UP modifications to Fannie Mae, as program administrator, are tentatively scheduled for Monday, November 1, 2010.
Several manual processes are being implemented to accommodate required UP forbearance plan reporting in the interim and are detailed below.
Transition of Active HAMP Trial Period Plan Modifications to UP Forbearance Plans
A borrower in an active HAMP trial period plan is eligible for an UP forbearance plan; however, a borrower may not simultaneously be in a HAMP trial period plan and an UP forbearance plan.
The Supplemental Directive provides guidance to cancel trial period plans in the HAMP Reporting Tool in the month in which the UP forbearance plan becomes effective. Despite this, servicers are advised not to cancel active HAMP trial period plans that have been converted to UP forbearance plans until further notice. Details regarding converting these trial modification plans from HAMP to UP will be provided in a future communication.
UP Forbearance Plan Survey Reporting
Servicers are required to provide monthly UP forbearance plan summary level data to Fannie Mae in its capacity as program administrator. The required summary level data of the monthly survey information is listed in Exhibit A -- Monthly Survey Information for All Loans that Enter an UP Forbearance Plan of Supplemental Directive 10-04.
Servicers will receive the first UP Forbearance Plan survey request form by e-mail no later than August 16, 2010. Responses will be due by August 20, 2010 and cover activity through July 30, 2010. Servicers are required to respond regardless of activity. For servicers with no UP activity, a blank survey shall be returned by e-mail stating there has been no UP activity during the period.
Thereafter, the survey will be distributed on the 15th of the month or the business day after if the 15th falls on a weekend or holiday. Responses will be due within five business days.
The initial e-mail will contain instructions for completing and returning the survey as well as contact information should a servicer have any questions.
Support
For more information or questions regarding the information in this communication, please contact the HAMP Solution Center at 1-866-939-4469, or contact your HAMP Servicer Integration Team Lead.
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 approximately 800 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.