New HAMP requirements for Workout Prospector, reporting, and more

With our September 18, 2009 Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-23 we provided Servicers with updates to Home Affordable Modification program (HAMP) requirements. Key updates included the mandatory use of Workout Prospector® when evaluating borrowers for a HAMP modification and new reporting requirements for HAMP loans.

Requiring Freddie Mac Servicers to use Workout Prospector

Beginning November 1, 2009, Freddie Mac Servicers must use Workout Prospector to evaluate all borrowers for a modification under HAMP. Servicers may also rely on their own proprietary or third-party system, provided they adhere to the requirements outlined in Guide Section C65.6(g). If a modification does not occur under HAMP, the Servicer must continue to evaluate the borrower for other Freddie Mac foreclosure alternatives using Workout Prospector.

Important information for Servicers about Workout Prospector

• Servicers may access Workout Prospector from our Servicing Technology Tools Web page. Servicers will need their secure Workout Prospector ID and password to access the tool. If you are a first-time user of Workout Prospector or you need to update your account, you must complete the online Workout Prospector registration form.
• The Borrower Qualification Worksheet (BQW) will no longer be available beginning November 1, 2009, since Servicers will be required to use Workout Prospector for all new HAMP evaluations.
• Servicers must use the property values provided in Workout Prospector, if a value is available; otherwise they must obtain a value in accordance with Guide Section C65.6. Effective January 1, 2010, we will no longer publish the report of property values on our Web site.
• A Workout Prospector User Guide is now available on our secure HAMP Web page. Freddie Mac is also providing training for both existing and new Workout Prospector users. Read a related article on HAMP training opportunities and take advantage of the resources that address your needs.

Additional HAMP requirements

Guide Bulletin 2009-23 also announced that Freddie Mac:

• Retired the Program Performance Reporting Spreadsheet (also referred to as the Weekly Summary). Servicers must now submit to Freddie Mac one data file for only Freddie Mac mortgages on a weekly basis by e-mail. This file should only include the three separate data file types that Servicers are required to send to the Program Administrator. These data files include the data required in Exhibits A, B, and C of Supplemental Directive 09-01, except that Servicers may not transmit, but rather must suppress, data protected by applicable privacy laws. In the same e-mail, Servicers must also provide the summary-level data regarding their borrower solicitation efforts.
• Instructed Servicers to comply with the Government Monitoring Data requirements provided in Section P of the HAMP Supplemental Documentation – Frequently Asked Questions posted on HMPAdmin.com.
• Incorporated special requirements for Freddie Mac Servicers relating to mortgages with second liens, in accordance with the new Making Home Affordable Second Lien Modification Program.
• Permitted Servicers to use any temporary waivers to requirements posted by the Program Administrator on HMPAdmin.com.
• Provided additional guidance on Supplemental Directive 09-06, previously announced by the U.S. Department of the Treasury. The announcement provides further clarification on a portion of the data requirements in Exhibit D that must be reported by Servicers to the Program Administrator.

We also updated the HAMP Modification Agreement requirements for recordation and revised the requirements around the capitalization and reimbursement of property inspection fees. The requirements for capitalizing expenses and delinquent amounts for processed modifications not related to HAMP have also been updated.

Key dates to remember

For more information:

• Review the September 18 Guide Bulletin.
• Visit the Home Affordable Modification program Web page.
• Visit our Learning Center for educational resources on the Home Affordable Modification program.
• Review information for borrowers about the federal Making Home Affordable Program on the U.S. Department of Treasury’s Web page.