Freddie Changes HAMP Requirements for Servicers

Freddie Mac (FRE) servicers received updated requirements for modifying distressed loans through the Home Affordable Modification Program (HAMP). HAMP provides cap incentives to servicers for the modifications of loans on the verge of foreclosure and adjusts those caps based on performance. The new requirements require servicers, by Nov. 1, 2009, to evaluate and process mortgages for HAMP with Workout Prospector, an updated software package that will retire the Borrower Qualification Worksheet, according to the bulletin sent from Freddie Mac. Servicers must also use the property value provided by Workout Prospector, and effective Jan. 1, 2010, Freddie Mac will not publish the report of property values for borrowers who are 30-plus days delinquent on its Web site. The new requirements also retire the Program Performance Reporting spreadsheet, or the “Weekly Summary.” To replace it, servicers must submit to Freddie Mac data files and a solicitation-activity summary via e-mail on a weekly basis. Effective Sept. 30, 2009, servicers must begin using the HAMP Modification Agreement, HAMP Hardship Affadavit and Trial Period Plan, which will allow servicers to cover a wider range of loan document features and reduce the amount of authorized changes. The revisions will also gather consent to share personal and financial first-lien modification data, according to the bulletin. Write to Jon Prior.

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