MHA Supplemental Directive 15-06 Making Home Affordable Program-Streamlined Modification Process
On July 1, Making Home Affordable (MHA) issued an update titled Supplemental Directive 15-06: Making Home Affordable Program-Streamlined Modification Process.
Supplemental Directive 15-06
Making Home Affordable Program – Streamlined Modification
In February 2009, the Obama Administration introduced the Making Home Affordable (MHA) Program to stabilize the housing market and help struggling homeowners obtain relief and avoid foreclosure. In March 2009, the U.S. Department of the Treasury (Treasury) issued uniform guidance for loan modifications by participants in MHA across the mortgage industry and subsequently updated and expanded that guidance. On June 1, 2015, Treasury issued version 4.5 of the Making Home Affordable Program Handbook for Servicers of Non-GSE Mortgages (Handbook), a consolidated resource for guidance related to the MHA Program for mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac (Non-GSE Mortgages).
As described in more detail below, the Home Affordable Modification Program (HAMP) will now include a “streamlined” modification process (referred to as Streamline HAMP).
Streamline HAMP is designed to assist borrowers who meet basic HAMP eligibility criteria and, among others, those who have not completed an application by the time their loan is 90 days delinquent.
This Supplemental Directive provides guidance to servicers for implementation of Streamline HAMP for Non-GSE Mortgages. The mapping of the Handbook is expected to be issued in August and will delineate the changes thereto attributable to the guidance provided in this Supplemental Directive. Except where noted, the guidance set forth in this Supplemental Directive is effective January 1, 2016 (Effective Date). Except as indicated herein, HAMP guidelines of general applicability existing as of the date of this Supplemental Directive will apply to HAMP Tier 1, HAMP Tier 2 and Streamline HAMP modifications.
This Supplemental Directive applies to servicers that are subject to the terms of a servicer participation agreement and related documents (SPA) and that have a Program Participation Cap (as defined in the SPA) of $75,000,000 or more as of the date of this Supplemental Directive. However, all other servicers that are subject to the terms of a SPA are encouraged to adopt the guidance in this Supplemental Directive. This Supplemental Directive does not apply to mortgage loans that are owned, securitized or guaranteed by Fannie Mae or Freddie Mac (each, a GSE), or insured or guaranteed by the Veterans Administration, the Department of Agriculture’s Rural Housing Service (RHS) or the Federal Housing Administration (FHA).
This Supplemental Directive covers the following topics:
- Servicer Participation
- Investor Solicitation
- Streamline HAMP Eligibility
- Streamline HAMP NPV Tool
- Streamline HAMP Modification Terms
- Streamline HAMP Offer
- Streamline HAMP Trial Period
- Evaluation Upon Submission of an Initial Package
- Streamline HAMP Permanent Modification
- Borrower Notices
- Incentive Compensation
- Servicing Transfers
- Annual Certification
- Treasury Reporting Requirements
- Interaction with Other MHA Programs
Please click here to view SD-15-06 [pdf] in its entirety.
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.