Fannie Mae Upate on HAMP program and misc info

FHLMC Bulletin 2009-13
Wednesday, 27 May 2009
Freddie Mac has issued the following Single Family Seller/Servicer Guide Update regarding Bulletin 2009-13. With this Single-Family Advisory e-mail and today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-13, we are announcing multiple servicing updates, including:
Updates to Requirements for the Home Affordable Modification Program (HAMP)
Enhancements to Electronic Default Reporting (EDR) for all Mortgages that Have an Alternative to Foreclosure Being Pursued
Revisions to Servicer Performance Profile Default Management Weighting
Changes to Tier One Premium Awards
Revisions to Servicing Requirements
Information on Recent Treasury Announcements
Updates to Requirements for the Home Affordable Modification ProgramWith today’s Guide Bulletin, we are:
Requiring Servicers to solicit borrowers who are 31 days or more delinquent on or after July 1, 2009, by no later than the 50th day of delinquency; also providing additional guidance on borrower solicitation by phone or electronic means.
Permitting the collection of certain borrower loss mitigation information and documents electronically.
Providing additional guidance on the collection of Government Monitoring Data using the revised HAMP Hardship Affidavit that was posted on April 21, 2009.
Revising the requirements for reporting and remitting a payoff of a mortgage with a partial principal forbearance and revising the required monthly Spreadsheet for Reporting Mortgages with a Partial Principal Forbearance template.
Beginning June 1, 2009, Servicers may report a number of new EDR default action codes and a new default reason code that will become mandatory reporting as of October 1, 2009. Enhancements to Electronic Default Reporting for All Mortgages that Have an Alternative to Foreclosure Being PursuedWe are introducing new EDR default action codes in order for Servicers to provide us with information on mortgages they are pursuing an alternative to foreclosure. Some of the new EDR default action codes are specific to HAMP, while others apply to all mortgages, including current mortgages, for which the Servicer is pursuing an alternative to foreclosure. We are also adding the new default reason code “HMP” so Servicers can identify which loans that are in a Home Affordable Modification Trial Period. This new default reason code must be reported in conjunction with the “09-Forbearance” default action code. Servicers are required to use these new EDR codes beginning October 1, 2009. Guide Exhibit 82, Electronic Default Reporting Transmission Code List, has been updated to reflect these new codes and an updated version of the EDR Quick Reference Guide will be posted on the Learning Center by May 31, 2009.Revisions to Servicer Performance Profile Default Management WeightingUnprecedented market conditions and a crucial new role for Servicers in helping at-risk and delinquent borrowers through the Making Home Affordable program require changes to the Servicer Performance Profile. To maintain the Profile as a meaningful, accurate measurement and guide to continual improvement of servicing performance, we are adjusting the weighting of the Default Management metrics with your July 1, 2009, performance. The revised Default Management metrics will focus more on your loss mitigation, inventory management, and data integrity performance and less on collections management performance. Servicers will continue to be rated on the same Servicer Performance Profile weighting under Investor Reporting and Remitting.As the market continues to adjust this year, we will continue to evaluate the Servicer Performance Profile. If we find that the program warrants additional revisions, we’ll communicate those changes to you.Changes to Tier One Premium AwardsIn light of the current market conditions, with this Single-Family Advisory e-mail, we are discontinuing some of the incentives that correspond to the Tier One Premium Awards for all Servicers’ 2009 performance.
Effective immediately, we are no longer offering monetary performance incentives for Tier One Platinum, Tier One Gold, and Hall of Fame Servicers. In addition, both Tier One Platinum and Tier One Gold’s technology compensation will not be offered in 2009.
We will, however, continue to provide Tier One Platinum Servicers with a $10,000 non-monetary wavier to use toward EarlyIndicator® renewal fees or to acquire the tool and a $1,000 non-monetary waiver to use toward Freddie Mac training and events. Tier One Gold Servicers will also continue to receive a $500 non-monetary waiver to use toward Freddie Mac training classes and events. All Tier One waivers for transfer of servicing and database change fees will remain in effect.
We will not provide public promotion of the Tier One Premium Awards for 2008 and 2009 performance. We will, however, continue to notify you of your Tier One and Hall of Fame status through your servicing representative.
Our robust Workout Incentive Program, which is available to Servicers regardless of their Tier rating, remains available to help offset the costs of pursuing alternatives to foreclosure. Servicers will continue to receive monetary incentives, depending on the type of successful workout, in accordance to the Guide.
As we are with the Servicer Performance Profile, we will continue to evaluate the Tier One Premium Awards throughout the year. If the program requires updates, we’ll communicate those changes to you. Revisions to Servicing RequirementsWith today’s Guide Bulletin, we are also:
Updating the Loss Mitigation Transmittal Worksheet to include data elements specific to HAMP and incorporating it into the Guide as new Form 1128, which is now an interactive Microsoft® Excel spreadsheet.
Updating Guide Chapter B65 to reflect that a HAMP-eligible borrower must first be considered under Guide Chapter C65. Servicers must implement the requirements for HAMP and also directs them to consider borrowers who are in a 0 to 30 day delinquency status to first be considered for a Freddie Mac Relief Refinance MortgageSM under Guide Chapter 24. If the borrower is not eligible for a modification under HAMP, the Servicer must then consider the borrower for other alternative to foreclosure options outlined in Guide Chapter B65.
Announcing new, standardized form subordination agreements, which were developed by Freddie Mac and Fannie Mae in coordination with the American Land Title Association. These standard form agreements are designed for lenders and Servicers to use to resubordinate subordinate liens when working with borrowers on modifications or refinances, including loan modifications under HAMP and Freddie Mac Relief Refinance Mortgages. The new agreements will be available on our Uniform Instruments Web page by June 1. Information on Recent Treasury AnnouncementsThe U.S. Department of the Treasury recently announced that they are expanding HAMP to include requirements on the use of short sales and deeds-in-lieu of foreclosure in the event a borrower cannot complete the modification process. They also announced a second lien program to help struggling borrowers lower their monthly payments on their second mortgage. We are currently working through the policy and operational guidelines, and we will communicate any necessary changes to our requirements in a future Guide Bulletin.