Making Home Affordable Program - hmpadmin.com

1 Version As of December 21, 2017 Making home Affordable Program MHA Handbook v5. 2 i TABLE OF CONTENTS FOREWORD .. 1 OVERVIEW .. 2 CHAPTER I Making home Affordable Program .. 9 1 SERVICER PARTICIPATION IN MHA .. 10 Servicer Participation 10 GSE Authorization of GSE SPA Services .. 10 Servicer Safe Harbor .. 11 Investor Solicitation .. 12 Transfers of Servicing .. 12 Transfer of Eligible Loans .. 12 HAMP Eligible Loans .. 13 2MP Eligible Loans .. 13 Treasury FHA-HAMP and RD-HAMP Eligible Loans .. 14 HAFA Eligible Loans .. 14 Relationship Manager .. 14 Obligations of Transferor Servicers .. 14 Obligations of Transferee Servicers .. 15 Involuntary Transfers of Servicing .. 15 Borrower Notification.

2 16 Impact on Incentives .. 16 Program Participation Caps .. 16 Compliance with Applicable Laws .. 21 Dodd-Frank Certification Requirement .. 22 2 COMPLIANCE .. 25 Compliance Assessments .. 25 Documentation .. 25 Documentation Requirements for PRA .. 29 Documentation Requirements for UP .. 30 Documentation Requirements for HAFA .. 31 Documentation Requirements for 2MP .. 32 Documentation Requirements for HHF .. 32 Communication of Findings and Results .. 33 Treasury FHA-HAMP and RD-HAMP Compliance .. 33 FHA2LP Compliance .. 34 Annual Certification .. 35 Initial Certification .. 36 Subsequent Certifications .. 37 Subsequent Events .. 38 Scope of the Certification .. 38 Scope of the Internal Controls Program .

3 38 Internal Controls Documentation .. 39 Quarterly Reviews .. 39 Reporting Noncompliance .. 39 Cover Letter to the Certification .. 40 Termination of Obligation to Provide Certifications .. 40 Internal Quality Assurance .. 40 Establishment of a Quality Assurance Function .. 40 MHA Handbook v5. 2 ii Scope of Quality Assurance Reviews .. 41 Quality Assurance Review: Methodology, Timing and Reporting .. 42 Relationship Manager Assessment .. 43 Dodd-Frank Certification, Borrower Identity and Owner Occupancy Compliance .. 44 Borrower Eligibility & Compliance Portal .. 45 Loan Selection .. 45 Servicer Documentation .. 46 Hold on Program Participation for Trial Period Plans or Pending HAFA Transactions.

4 46 Vendor Review and Alert Notification .. 46 Alert Clearance Process .. 47 Servicer Responsibility for Assessing Information .. 48 Reporting Clearance Status .. 48 Identity/Occupancy Verification Alert Status .. 48 Dodd-Frank Certification Compliance Alert Status .. 49 Not Cleared Borrower Notices .. 49 Treasury System Reporting and Incentives .. 51 Interaction with Other EESA programs .. 51 Borrowers In Multiple MHA programs .. 51 Borrowers In MHA and HHF programs .. 51 Compliance for GSE Loans under a GSE Amended SPA .. 52 3 ESCALATION OF BORROWER INQUIRIES .. 52 Treasury s Borrower Support Centers .. 52 Servicer Escalated Case Management .. 53 Staffing Requirements .. 53 Accessibility .. 54 Single Point of Contact.

5 54 Escalation Resolution Process .. 54 Timing .. 54 Authorization .. 54 Case Resolution .. 55 Substantially Similar Cases .. 56 Ongoing Litigation .. 56 Protections Against Unnecessary Foreclosure .. 56 Suspension of Referral to Foreclosure .. 56 Suspension of Scheduled Foreclosure Sale .. 56 4 SINGLE POINT OF CONTACT .. 56 Relationship Manager Responsibilities .. 58 Staffing and Caseload Management .. 59 5 FEDERALLY DECLARED DISASTERS .. 59 Flexibility with Borrowers in FEMA Designated FDD Areas .. 59 Forbearance until Servicer makes Contact with Borrower in an FDD Area .. 60 Forbearance Plans under HAMP and 2MP .. 60 FDD Forbearance Plan during a HAMP Trial Period Plan or 2MP Trial 61 Cancellation of HAMP Trial Period Plan or 2MP Trial Period.

6 61 Exiting the Forbearance Plan after Cancellation of TPP or 2MP Trial Period .. 62 FDD Forbearance Plan Following modification .. 63 Foreclosure and a FDD Forbearance Plan .. 64 Late Fees .. 64 MHA Handbook v5. 2 iii 6 FEDERAL government SHUTDOWN .. 64 CHAPTER II home Affordable modification Program .. 65 1 ELIGIBILITY .. 66 HAMP Eligibility Criteria .. 66 Basic HAMP Eligibility Criteria .. 66 HAMP Tier 1 Eligibility Criteria .. 67 HAMP Tier 2 Eligibility .. 68 Streamline HAMP Eligibility .. 69 Additional Factors Impacting HAMP Eligibility .. 69 2 COMMUNICATION AND BORROWER NOTICES .. 75 Servicer Requirements .. 75 Borrower Solicitation .. 76 Reasonable Effort .. 77 Right Party Contact .. 78 Exception to Notice Requirement.

7 79 Borrower Notices .. 80 Content of Borrower Notices .. 80 Non-Approval Notices .. 81 Non-Approval Notice-Negative NPV Result .. 82 Dispute of Multiple NPV Data Inputs including the Property Value Input .. 83 Insufficient 83 NPV Evaluation Assistance from MHA Help .. 83 Servicer Not Required to Perform NPV Re-Evaluation .. 83 Non-Approval Notice Payment Default During the Trial Period .. 84 Non-Approval Notice Loan Paid Off or Reinstated .. 84 Non-Approval Notice Withdrawal of Request or Non-Acceptance of Offer .. 84 Non-Approval Notice Not Cleared Alerts .. 84 Non-Approval Notice Failure to Return Permanent modification Documents .. 85 Non-Approval Notice Failure of Streamline HAMP Terms or Conditions.

8 85 Reserved .. 85 Disputed Property Value Input .. 85 Borrower NPV Calculator .. 86 Streamline HAMP .. 86 Streamline HAMP Policy .. 86 Streamline HAMP Offer .. 87 3 PROTECTIONS AGAINST UNNECESSARY FORECLOSURE .. 88 Suspension of a Referral to Foreclosure .. 88 Certain Circumstances .. 88 Suspension of Foreclosure Proceedings in Process .. 89 Suspension of Scheduled Foreclosure Sale .. 89 Mitigating Foreclosure Impact .. 90 Simultaneous Trial Period Plan and Foreclosure Explanation .. 90 Foreclosure Attorney/Trustee Communication .. 90 Certification Prior to Foreclosure Sale .. 90 4 REQUEST FOR MORTGAGE ASSISTANCE .. 91 Request for Mortgage Assistance (RMA) Form .. 92 Hardship Affidavit and Rental Property Certification.

9 92 Hardship 92 Rental Property Certification .. 92 government Monitoring Data (GMD) .. 93 MHA Handbook v5. 2 iv Collection of 94 Borrower Declines to Provide 94 GMD from Observation or Origination .. 95 IRS Form 4506-T or 4506T-EZ or Tax Return .. 95 Evidence of Income .. 95 Reasonably Foreseeable or Imminent Default for Owner-Occupied Property .. 95 Acknowledgment and Incomplete Information Notice .. 96 Review of Loss Mitigation Application .. 96 Complete Loss Mitigation Application .. 96 Evaluation of Streamline HAMP-Eligible Borrowers upon Submission of an Initial Package .. 97 Submission before Streamline HAMP Offer .. 97 Submission after HAMP Offer .. 97 Submission Following Acceptance of Streamline HAMP Offer.

10 97 Communication of Evaluation and Outcome Following Acceptance of Streamline HAMP Offer .. 98 Incomplete Loss Mitigation Application .. 98 Making home Affordable Outreach and Borrower Intake Project .. 99 Initial Package Acceptance .. 99 Ineligible Package .. 100 Ineligible Borrower .. 100 Incomplete Package .. 100 5 VERIFICATION .. 100 Evidence of Income .. 101 Wage or Salary Income .. 102 Self-Employment Income .. 103 Other Earned Income .. 103 Benefit Income .. 103 Unemployment Benefits .. 103 Rental Income .. 104 modification of Loan Secured by Principal Residence .. 104 modification of Loan Secured by Rental Property .. 104 Alimony, Separation Maintenance, and Child Support Income .. 105 Threshold for Documenting Passive and Non-Wage Income.