Freddie Mac Posts Revised HAMP Documents
October 14th, 2010
Freddie Mac issued a Single-Family Seller/Servicer Guide (Guide) Bulletin titled, Freddie Mac Posts Revised HAMP Documents.
On Friday, October 1, 2010, the U.S. Department of the Treasury (Treasury) issued revised Home Affordable Modification program (HAMP) documents. Among other revisions, these documents have been updated to reflect new Treasury program requirements implementing the Principal Reduction Alternative (PRA) offering for non-GSE servicers that was announced in Treasury’s Supplemental Directive 10-05.
Servicing
As a result of Treasury’s issuance of its revised HAMP documents, Freddie Mac updated its HAMP documents provided on Freddie Mac's HAMP solicitation Web page. Freddie Mac Servicers must use the Freddie Mac HAMP documents and cannot use those posted on HMPadmin.com in connection with servicing Freddie Mac-owned mortgages.
Servicers are strongly encouraged to begin using the revised documents immediately. However, use of the revised documents will become mandatory as follows:
Servicers must begin using the revised Home Affordable Modification Agreement [Uniform Instrument Form 3157 (rev. 10/10)] and HAMP Agreement Cover Letter (Form 1118) for HAMP modifications with a first payment due date on or after March 1, 2011.
- The HAMP Agreement Cover Letter (Form 1118) includes additional language that must be disclosed to borrowers receiving a HAMP modification that contains forbearance of their principal. This disclosure informs the borrower that there is the potential that a principal curtailment may be applied to the deferred principal balance instead of the interest-bearing balance.
- Servicers must refer to the updated Authorized Changes to Modification/Special Purpose Documents for information regarding required or permitted changes to the revised Home Affordable Modification Agreement [Uniform Instrument Form 3157 (rev. 10/10)].
- The revised HAMP Trial Period Plan Notice – Verified (Form 1117) must be used for Trial Period Plans with a first Trial Period payment due date on or after March 1, 2011.
- If applicable, the revised Making Home Affordable Hardship Affidavit (Form 1115) must be used for requests received or Initial Packages sent on or after March 1, 2011.
As a reminder, Treasury’s PRA offering does not apply to Freddie Mac-owned mortgages; therefore, the revised Freddie Mac HAMP documents do not include updates related to PRA. We are currently reviewing Supplemental Directive 10-05 to determine if Freddie Mac will implement any policy or operational changes, and we will communicate any changes to our requirements in a future Single-Family Seller/Servicer Guide (Guide) Bulletin. Until otherwise notified, Freddie Mac Servicers must not implement the requirements in Supplemental Directive 10-05, including Freddie Mac-owned mortgages insured or guaranteed by any federal agency, such as the Federal Housing Administration.
Spanish translations of the revised Authorized Changes to Modification/Special Purpose Documents are available; Spanish translations of the other revised HAMP-related documents will be posted to our website as they become available.
We will also update the Guide to reflect these changes to our document requirements in a future Guide Bulletin.
Get More Information
Contact your Freddie Mac representative.
Visit Freddie Mac’s HAMP Web page.
To view the online Guide Bulletin, 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.