Treasury working on single point of contact rule for HAMP
The Treasury Department plans to release a rule at the end of April requiring servicers to establish a single point of contact for borrowers applying for assistance through the Home Affordable Modification Program.
A Treasury spokesperson said the rule will apply to mortgages not held by the government-sponsored enterprises Fannie Mae and Freddie Mac. Regulators and the state attorneys general are in negotiations on a settlement with the major servicers after an investigation into their foreclosure practices. Part of the deal could reportedly be a required single point of contact for borrowers working through the loss-mitigation process.
Servicers participating in HAMP have started roughly 630,000 permanent modifications since it launched in March 2009.
This would be the latest adjustment the Treasury made to a program under threat from lawmakers attempting to terminate it two years early. In February, the Treasury announced it would be establishing call centers through Fannie Mae to give homeowners chance to appeal decisions on their loans.
And in March, the Treasury said it would begin grading the largest servicers on their performance in the program. Servicers not doing a good enough job could have funding cut off.
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