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Fannie and Freddie on 12/14/09 issued new servicing guides with lots of stuff mostly good and new borrower notices that follow HMP.ADMIN Directive from Nov I previously posted. HMP is for non GSE’s. Unfortunately we have 3 different sets of guides that are similar but not exactly the same.
Fannie and HAMP aka HMP.Admin require extensive notices if denied either a trial or a final modification. The notice are required for all servicers to provide (if Fannie or non GSE – HAMP) as of 1/01/10 (encouraged to adopt before)
FANNIE Servicing Guide Announcement 09-36 12/14/09
Title company endorsements now only needed if roll up of back payments exceeds $50,000 (was $20,000)
A servicer must send an extensive written notice to every borrower that has been evaluated for HAMP but is not offered a trial period plan, or is not offered a permanent HAMP modification within 10 days of the denial.
The notice must also describe other foreclosure prevention alternatives for which the borrower may be eligible, if any, including but not limited to other modification programs, preforeclosure sale, or deed-in-lieu of foreclosure, and identify the steps the borrower must take in order to be considered for those alternatives.
NPV TEST INPUTS
When the borrower is not approved for a HAMP modification because the mortgage loan is deemed NPV negative, the notice must include a list of certain input fields that are considered to reach the NPV result and a statement that the borrower may, within 30 calendar days of the date of the notice, request the date the NPV test was completed and the values used to populate the NPV input fields defined in Attachment 1. The purpose of providing this information is to allow the borrower the opportunity to correct values that may have impacted the analysis of the borrower’s eligibility.
If the borrower (or the borrower’s authorized representative) requests the specific NPV values orally or in writing within 30 calendar days from the date of the notice, the servicer must provide them to the borrower within 10 calendar days of the request.
IMPORTANT – DELAY FORECLOSURE SALE :
If the mortgage loan is scheduled for foreclosure sale when the borrower requests the NPV values, the servicer may not complete the foreclosure sale until 30 calendar days after the servicer delivers the NPV values to the borrower. This will allow the borrower time to make a request to correct any values that may have been inaccurate.
[ DAVE NOTES - I hope this means they hold off sale long enough to get the notice to request the NPV Values, seems a bit vague and could service sell before request is made by borrower?]
If the borrower identifies inaccuracies in the NPV values, the servicer must suspend the foreclosure sale until the inaccuracies (if material) are reconciled. Servicers are not required to provide the numeric NPV results or NPV input values not enumerated in Attachment 1.
For much more:
https://www.efanniemae.com/sf/guides…/2009/0936.pdf
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Freddie Mac Bulletin 2009-28 12/14/09
But its a “guide” as is Fannie: “With this Single-Family Seller/Servicer Guide (“Guide”) Bulletin…”
This longer bulletin is a bit more messy. Freddie is reviewing the FAQs of HAMP (for non GSE’s) and will announce results in future bulletin. Other HAMP docs it refers to and is very confusing about in “Additional Guidelines on SD 09-07″
Goes into detail of requirements for imminent default evaluations and refers to future direction…. what a mess… different forms required after 3/1/10.
As provided in SD 09-07, Borrowers are not required to sign or return the new Trial Period Plan Notice. Servicers must retain a copy of the Trial Period Plan Notice sent to the Borrower in the Mortgage file and record the date that it was sent to the Borrower. Timely receipt of the first payment due under the Trial Period Plan Notice is evidence of the Borrower’s acceptance of the trial period plan terms and conditions.
Under the revised requirements, documentation of a Borrower’s income may not be more than 90 days old as of the date that the Servicer receives such documentation in connection with evaluating a Mortgage for a modification under HAMP. Servicers are not required to update such documentation during the remainder of the Trial Period.
OPTIONS FOR OBTAINING TREASURY NPV VALUES – very detailed rules about the model approved by Compliance Agent etc.
BORROWER NOTICES – refers back to SD 09-08 from 11/3/09 and must comply as of 1/1/10. Seems similar to Fannie but can’t confirm for sure without a lot of research (I am Fannie so they are my main personal interest and Fannie Announcement is far less confusing and lays it all out in one place vs Freddie)
Than gets into eModification restrictions which may or may not only relate to electronic filings – can’t use if engaged in litigation etc… details only an attorney would love like:
The Servicer is unable to comply with the recording jurisdiction’s recordation and formatting requirements for an electronic document, and Chapter C65 requires the Modification Agreement to be recorded or in recordable form
REVISIONS TO LOAN MODIFICATION REQUIREMENTS FOR ALL MORTGAGES
Increases the capitalization threshold regarding Title insurance from $20,000 to $50,000 the same as Fannie
For much more see:
http://www.freddiemac.com/sell/guide…df/bll0928.pdf
HAMP ADMINISTRATION Supplemental Directive 09-08 from November 3, 2009 which I posted about in Nov
Is all about the Borrower Notices which upon brief scan seems to have the same directives as the Fannie Announcement above and the about the same exhibit of the notification format.
See https://www.hmpadmin.com/portal/docs…cer/sd0908.pdf
Discuss thee changes with other homeowners in the LoanSafe Community
