Freddie Mac PMMS: Almost two points lower than peak in October, 30-year FRM ties record low reached in April

Fannie Mae modifies Home Affordable Modification Program guidanceMortgagePress.comFannie Mae, Announcement 09-05, Home Affordable Modification Program Fannie Mae has amended Announcement 09-05 (now known as Announcement 09-05R). The revised announcement provides additional policy clarifications and instructions regarding the Home Affordable Modification Program (HMP). Among other things, the announcement imposes four new requirements on servicers. First, for any borrower that seeks modification and completes a hardship affidavit, a servicer must request and report data on that borrower's race, ethnicity, and sex. Second, a servicer must evaluate any borrower seeking modification, but not yet 30 days delinquent, by using Fannie Mae's "imminent default screen." To be eligible for a modification under the screen, borrowers must have a debt coverage ratio of less than 1.20. Next, servicers must retain: • All documents and information received during the process of determining borrower eligibility; • All records of borrower solicitations or borrower-initiated inquiries regarding the HMP; • All documents and information related to the monthly payments during and after the trial period as well as the incentive payment calculations; and • If the borrower loses good standing, all documents relating to other foreclosure prevention alternatives offered to the borrower. Finally, a servicer must meet reporting requirements established by Fannie Mae and the U.S. Department of the Treasury (Treasury). The Treasury has selected Freddie Mac to serve as its Compliance Agent for the HMP, allowing Freddie Mac to conduct independent compliance assessments on all servicers. For a full copy of Fannie Mae Announcement 09-05, click here.