• Single-Family
  • Making Home Affordable Program
  • Underwrite and Process Loans
  • Sell and Deliver Loans
  • Mortgage Products
  • Service Loans
    • Home Affordable Modification
    • Default Management
    • Servicer Performance and Incentives
    • Disaster Management
    • Investor Reporting
    • Servicing Tools
    • Document Custody
  • Doing SF Business with Freddie Mac
  • Forms and the Guide
  • Single-Family News Center
  • The Learning Center
• Multifamily
• Debt Securities
• Mortgage Securities
• Vendors and Suppliers

Reporting and Incentives

Servicers should consult their mortgage insurance providers for approval and specific processes related to the reporting of modified terms, payment of premiums, payment of claims, and other operational matters in connection with privately insured mortgage loans modified under the Home Affordable Modification program (HAMP). Freddie Mac is seeking to obtain delegations of authority from each mortgage insurer so that Servicers can more efficiently process these loan modifications without having to obtain mortgage insurer approval on individual loans. We will post on our secure Web site a list of the mortgage insurers from whom we have received a delegated authority agreement and will update that list as we obtain delegations. Until we obtain a delegated authority agreement from a mortgage insurer on behalf of all Servicers, each Servicer must obtain mortgage insurer approval on a case-by-case basis.

HAMP provides incentives to borrowers and Servicers for successful modifications and timely mortgage payments. Incentives accrue monthly and are awarded yearly.

Borrower Incentives

• Borrowers who make timely payments on their modified first lien and the modified payment resulted in at least a six percent reduction from the monthly mortgage payment used to determine eligibility will receive a "Pay for Performance" incentive in the form of a principal reduction of up to $1,000 per year for five years.

Servicer Incentives

• Servicers will receive $1,000-$1,500 for each eligible modification they establish, and a "Pay for Success" incentive of up to $1,000 each year for three years as long as the borrower does not become 90-days or more delinquent.

"Pay for Performance" and "Pay for Success" incentives are awarded if the borrower's modified monthly payments on their first lien results in at least a six percent reduction and will be forfeited should the borrower become 90-days or more delinquent at any time.