HAMP Update New Dodd-Frank Certification Requirement
The U.S. Department of the Treasury issued a HAMP Update titled, New Dodd-Frank Certification Requirement.
New Dodd-Frank Certification Requirement
Yesterday, September 21, 2010, Supplemental Directive 10-11: Making Home Affordable Program -- Dodd-Frank Certification Requirement was issued providing guidance on a new borrower certification (Dodd-Frank Certification) for non-GSE loans participating in the Making Home Affordable (MHA) Program required under Section 1481(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Details The Dodd-Frank Certification requirement became effective on September 21, 2010, and provides guidance that borrowers are not eligible to receive assistance under the MHA Program if they have been convicted within the last 10 years of the following in connection with a mortgage or real estate transaction:
- felony larceny, theft, fraud, or forgery;
- money laundering; or
- tax evasion.
Effective September 21, 2010 (i.e., the date of the Supplemental Directive), a servicer must obtain a Dodd-Frank Certification from borrowers as outlined in Exhibit A of Supplemental Directive 10-11. Note: there is an Interim Period Requirement (guidance effective from September 22, 2010 through December 31, 2010) and a Final Period Requirement (guidance effective beginning January 1, 2011). Review Exhibit A for specific details.
Additionally, the following are not impacted by the Dodd-Frank Certification requirement if they are outstanding as of the date of Supplemental Directive 10-11 (September 21, 2010):
- Home Affordable Modification Program (HAMP) and Second Lien Modification Program (2MP) trial period plans and trial period plan offers;
- Permanent HAMP, 2MP, Treasury FHA-HAMP (Federal Housing Administration) and RD-HAMP (Rural Housing Service) modifications and permanent modification offers; and
- Short sale and deed-in-lieu of foreclosure (DIL) offers under the Home Affordable Foreclosure Alternatives (HAFA) Program.
The form to use for the Dodd-Frank Certification is both attached to Supplemental Directive 10-11 (Exhibit B) and available as a stand-alone document.
Dodd-Frank Certification Form
Contact the HAMP Solution Center at firstname.lastname@example.org or 1-866-939-4469.
To view the online HAMP Update, please click here
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