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.
