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Guide Bulletin 2011-19 Updates Servicing Alignment Initiative Requirements and HAMP Servicer Incentives

October 26, 2011

To help Servicers aggressively pursue alternatives to foreclosure for at-risk borrowers, we are updating our servicing requirements that support the Servicing Alignment Initiative (SAI) and Home Affordable Modification program (HAMP). As announced in today's Single-Family Seller/Servicer Guide (Guide) Bulletin 2011-19, we are revising the SAI borrower solicitation requirements and modifying HAMP incentives for Servicers.

Servicing

The updates we are announcing today have multiple effective dates that are detailed in Guide Bulletin 2011-19. We are:

  • Permitting you to use the results from a collection and loss mitigation tool to assist in tailoring your collection and solicitation efforts, including determining when to begin a calling campaign and send the initial Borrower Solicitation Package.
  • Providing guidance on steps to take when a borrower's current hardship reason is not one of the options in the hardship affidavit section of Form 710, Uniform Borrower Assistance Form.
  • Requiring you to continue solicitation and collection efforts when a borrower, who was less than 60 days delinquent at the time of the evaluation and did not qualify for any alternatives to foreclosure, subsequently becomes 60 days delinquent.
  • Revising our Servicer incentive structure for all permanent HAMP modifications to be a three-tier scale that is based on the term of delinquency when the trial period starts. Servicers will be paid up to $1,600 for each successfully completed HAMP modification.

Additional Servicing Requirements Announcements

With Guide Bulletin 2011-19, we are also:

  • Reminding you that we updated our requirements for the post-referral to foreclosure solicitation letter. Read more.
  • Notifying you that we recently posted Spanish translations of certain SAI borrower solicitation documents, including Form 710, on FreddieMac.com. We encourage you to use them to support your efforts to obtain the required completed and signed English-language documents from the borrower.

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