For any homeowner who may be considering a loan modification under the Home Affordable Modification Program (HAMP), you need to be aware that HAMP and many of the other programs under the Making Home Affordable program are coming to an end.
Some of the programs that will be ending are:
-HAMP Tier 1 and HAMP Tier 2 (non-GSE and GSE) (GSE means Government Sponsered Enterprises). Generally Fannie Mae and Freddie Mac being the two most commonly known.
-Streamline HAMP (i.e., Tier 2 w/o documentation from borrower)
-2MP (2nd lien Mortgage Program)
-UP (Unemployment Program) which is basically a forebearance program for unemployed homeowners
-HAFA (Home Affordable Foreclosure Alternative), this is the short-sale or Deed in Lieu alternative to foreclosure
Important deadlines to note:
December 1, 2016:
-The latest possible effective date for corresponding Government sponsored Enterprise (like Fannie Mae or Freddie Mac) Standard Modification of first lien mortgage for participation in the 2nd lien modification program (2MP) of the borrower’s second loan
December 30, 2016:
-HAMP Tier 1 and Tier 2 deadline to submit application. If application includes at a minimum: RMA form, 4506T form (or tax return) and complete income documentation, then
-Servicer must review for HAMP in most cases
-Servicer must suspend foreclosure activity per HAMP rules
-Borrower may be eligible for 2MP on second loan if approved for a first lien HAMP modification
-UP(unemployment program) deadline for servicers to offer an UP forbearance plan
-HAFA (home affordable foreclosure alternative), such as a short sale, or deed in lieu, deadline for servicers to send notice of pre-approval, DIL (deed in lieu) offer or approval of executed sales contract
March 17, 2017:
-If corresponding first lien HAMP modification appears in reporting system by this date, servicer must offer 2MP on second loan per 2MP rules
-If corresponding first lien HAMP modification does not appear in reporting system by this date, servicer has discretion to offer 2MP on second loan per 2MP rules
December 1, 2017:
-Latest possible effective date of a HAMP modification. Trial plans must be converted to permanent plans before December 1, 2017
-Latest possible effective date of a 2MP. Trial plans must be converted to permanent plans before December 1, 2017.
-Latest possible completion date for a HAFA short sale or DIL.
-Latest possible date for new MHA Help or HSC (HAMP Soluction Center) escalation (and must be resolved by May 1, 2018)