Late Monday Freddie Mac issued a bulletin for its
Single-Family Servicer Guide (Bulletin
2013-17) which covers changes to the Home Affordable Modification Program
(HAMP), Streamlined Modifications, the "Pay for Success" incentive, and some
state foreclosure timelines, Changes take
effect immediately unless it is noted otherwise.
In line with the extension of HAMP announced in May,
the Bulletin updates Section C65.4 Eligibility
to require that all HAMP modifications have a Trial Period Plan effective date
on or before March 1, 2016 and Modification Effective Dates on or before
September 1, 2016.
The Bulletin also makes a mortgage that meets all
other HAMP eligibility criteria in the Guide and has a positive Treasury Net Present
Value (NPV) test that is an NPV of $0 or greater eligible for HAMP. This
change becomes effective on January 2, 2014 and updates Sections
C65.5.1, Verification of Eligibility, C65.6, Underwriting the
Borrower, and C65.8, Other General Requirements.
Servicers are also reminded that if a borrower is
determined to be ineligible because of a negative NPV or for any other reason
related to an eligibility criteria that borrower must be considered for other
The Streamlined Modification program was extended to
allow servicers to continue to offer Trial Modification Plans with effective dates
on or before December 1, 2015. This
change is made in accordance with the Servicing Alignment Initiative and
Section B65.12.1 has been updated to reflect it.
Deadlines for all foreclosure sales completed on or
after September 1, 2013 in the states of Nevada, New Mexico, and Washington are
extended by 30 days. This updates the
guide Exhibit 83, Freddie Mac State
Foreclosure Time Lines.
PAY FOR SUCCESS INCENTIVE
Freddie Mac currently pays servicers an annual
success incentive of $1,000 a year for three years for HAMP-eligible mortgages. This incentive is being discontinued for HAMP
modifications with effective dates on or after April 1, 2014. Servicers will continue to receive incentives
for mortgages with modification dates prior to the cutoff. Sections
A65.26, Unemployment Forbearance, C65.4, C65.7,
Process, and C65.9, HAMP Incentives, have been updated to reflect this
following reminder was also posted in yesterday's bulletin pertaining to
HAMP-modified Mortgage is repurchased, the Servicer takes
rights and obligations of the Mortgage,
including the obligation to pay Borrower "Pay for Performance" incentives on eligible
Mortgages as set forth in the HAMP Trial Period Plan. We
have updated Sections C65.8 and C65.11, HAMP Activity Reporting Requirements, to reflect this
existing Servicer obligation.
Servicers must continue
to comply with the Program Administrator's
instructions on reporting
and cancellation of repurchased Mortgages in the HAMP Reporting Tool."