FHLMC Guide Bulletin 2013-17 Extends HAMP and Streamlined Modification
On September 16, Freddie Mac released Guide Bulletin 2013-17, which extends the Freddie Mac Streamlined Modification and Home Affordable Modification Program.
In Single-Family Seller/Servicer Guide (Guide) Bulletin 2013-17, we are:
- Extending the Freddie Mac Streamlined Modification (Streamlined Modification) to include Trial Period Plans with effective dates on or before December 1, 2015.
- Extending the Home Affordable Modification Program (HAMP) to include modifications with Trial Period Plan Effective Dates on or before March 1, 2016 and Modification Effective Dates on or before September 1, 2016.
- Revising our requirements for proposed HAMP modifications submitted through the U.S. Department of Treasury (Treasury) net present value (NPV) model on or after January 1, 2014.
- Retiring the annual Servicing “Pay for Success” incentive for HAMP modifications with Modification Effective Dates on or after April 1, 2014.
- Reminding Servicers that Freddie Mac has the right to recover previously-paid incentives on repurchased HAMP-modified mortgages.
- Extending State foreclosure time lines for foreclosure sales completed on or after September 1, 2013 in Nevada, New Mexico and Washington.
Extensions to Streamlined Modification and HAMP
The Streamlined Modification and HAMP play critical roles in the housing recovery process. To further assist borrowers, we are extending both the Streamlined Modification and HAMP to include modifications with Trial Period Plan effective dates on or before December 1, 2015 and March 1, 2016, respectively. Additionally, HAMP modifications must have a Modification Effective Date on or before September 1, 2016.
The extension of HAMP was previously announced in our May 30, 2013 press release. These extensions reflect our efforts to offer a wide range of workout options to struggling homeowners.
HAMP NPV Test Results Must Be Positive
For all proposed HAMP modifications submitted through the Treasury NPV model on or after January 1, 2014, mortgages that meet all other eligibility criteria in Guide Chapter C65, Home Affordable Modification Program, will be eligible for HAMP if the Treasury NPV test result is positive.
If a borrower is ineligible for a HAMP modification, Servicers must consider borrowers for other available foreclosure alternatives in accordance with the evaluation hierarchy.
HAMP “Pay for Success” Incentive Retired
Effective for HAMP modifications with Modification Effective Dates on or after April 1, 2014, Servicers will no longer receive “Pay for Success” incentives. The retirement of this incentive coincides with a tiered incentive increase for HAMP modifications with effective dates on or after April 1, 2014, which we announced in Guide Bulletin 2013-14 [PDF].
Reminder: Borrower Incentives for Repurchased Mortgages
As a reminder, Freddie Mac has the right to recover all losses, costs, and damages on repurchased mortgages, including previously-paid incentives. Also, Servicers are obligated to pay borrower “Pay for Performance” incentives on eligible HAMP-modified mortgages that have been repurchased. Upon repurchase, Servicers must continue to cancel all related HAMP modification and trial period plan records in the HAMP Reporting Tool.
State Foreclosure Time Lines Extended
Effective for all foreclosure sales completed on or after September 1, 2013, we have increased the State foreclosure time lines by 30 days in Nevada, New Mexico, and Washington. We’ve extended the foreclosure time lines for these states to ensure you can meet current market needs and have sufficient time to process foreclosures.
Servicers are encouraged to visit Freddie Mac’s Learning Center Web page for current information on Freddie Mac training programs and reference tools.
For More Information
- Read Guide Bulletin 2013-17 [PDF]
- Contact your Freddie Mac representative or 800-FREDDIE.
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