Archive for October, 2011

Making Home Affordable Program

Eligibility Requirements for a Modification Under The Making Home Affordable (MHA) Program

  • Is current on the mortgage
  • Is owner/occupant of a 1 to 4 unit property
  • Has reasonable ability to pay the new mortgage payment
  • Owned or guaranteed by Fannie Mae or Freddie Mac
  • First mortgage cannot exceed 125% of property’s current market value
  • Refinance must improve affordability or sustainability

Home Affordability Modification Program (HAMP)

  • Has financial hardship and is delinquent or in imminent default
  • Is owner-occupant of 1 to 4 unit property
  • Has sufficient, documented income to support the modified payment
  • Amount owed on first mortgage equal to or less than $729,750
  • Mortgage originated on or before January 1, 2009
  • First mortgage payment (PITI + homeowner association/condo fees) is greater than 31% of homeowner’s monthly gross income

Home Affordable Unemployment Program (UP)

  • Is owner/occupant of 1/4 unit property.
  • Makes request before seriously delinquent (three months due, unpaid).
  • Is unemployed at time or request and eligible for unemployment benefits.
  • Has not previously received UP forbearance.
  • Amount owed on first mortgage equal to or less than $729,750.
  • Mortgage originated on or before January 1, 2009.
  • Is delinquent or default is foreseeable.
  • Loan has not been previously modified under HAMP.

Home Affordable Foreclosure Alternative (HAFA)

  • Before evaluating for HAFA, servicer must consider other retention programs.
  • Homeowner must be evaluated within 30 calendar days of the following:
    • Homeowner does not qualify for HAMP.
    • Homeowner does not successfully complete a HAMP Trial Period.
    • Homeowner is delinquent on a HAMP modification.
    • Homeowner requests a short sale or DIL.

Second Lien Modification Program (2MP)

  • Works in tandem with HAMP. When 1st lien modified, participating 2MP servicers must offer to modify 2nd lien.
  • 2nd lien must have been originated on or before January 1, 2009.
  • Homeowner who makes timely payments receives principal reduction of up to $1,250: $250 per year for 5 years.
  • No new 2MP modifications after December 31, 2012