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Important Reminders for Reporting HAMP and Standard Modification Trial Period Activities

December 2, 2011

Over the last few months, you have implemented many default management servicing requirements that impact your reporting and incentives. With these changes, it is important that you complete your monthly electronic default reporting (EDR) for Home Affordable Modification program (HAMP) and Freddie Mac Standard Modification trial period activities in a timely and accurate manner.

The loan-level HAMP and Standard Modification data you report to Freddie Mac in your monthly EDR is used in multiple ways. Among other things, the data provides us with information on borrowers who are in applicable trial periods. We also use the trial period effective date that you report to us to determine your incentives when modifications are settled successfully.

Because accurate and timely reporting is so important to achieve our mutual goals, here are some key points on how to report your HAMP and Standard Modification trial period activities in your monthly EDR.

HAMP Trial Period Reporting

To notify Freddie Mac that a borrower has entered into a HAMP trial period, you must:

  • Report default reason code HMP – Home Affordable Modification Program in conjunction with default action code 09 – Forbearance.
  • Indicate the HAMP trial period effective date as the first day of the month and establish it in accordance with Single-Family Seller/Servicer Guide (Guide) Section C65.7(a). You must report this date each month the borrower is in the trial period.
  • Submit this data by the third business day of the month after you receive the first payment due under the HAMP trial period plan, and continue reporting it each month the borrower is in the trial period. For example, if you receive the borrower’s first trial period payment on December 1, you must report this activity in the January EDR cycle and each EDR cycle thereafter until the borrower completes or fails the trial period.
  • Ensure the trial period effective date that you report to Freddie Mac is also reported accurately and timely to the Program Administrator. Otherwise, it may result in nonpayment or delayed payment of incentives.

Standard Modification Trial Period Reporting

When reporting to Freddie Mac that a borrower has entered into a Standard Modification trial period, you must:

  • Report default action code BF – Standard Modification Trial Period.
  • Indicate the Standard Modification trial period effective date as the first day of the month and establish it in accordance with Guide Section B65.19(a). You must report this date each month the borrower is in the trial period.
  • Submit this data by the third business day of the month for the previous month’s activity, and continue reporting it each month the borrower is in the trial period. Remember, you must begin offering the Standard Modification by January 1, 2012, and report the activity in the February 2012 reporting cycle for January 2012 activity.

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