Reporting and Incentives
Servicers must report to Freddie Mac all Home Affordable Modification Program (HAMP®) activity in accordance to Single-Family Seller/Servicer Guide (Guide) Chapter 9205.
Servicers must report specific loan-level information, as applicable, to Freddie Mac through Electronic Default Reporting (EDR) using the codes described in Guide Section 9205.14(a) in addition to complying with other EDR requirements in Guide Section 9102.7 and Exhibit 82, Electronic Default Reporting Transmission Code List.
All Freddie Mac Servicers must report HAMP loan-level data to the program administrator through the HAMP Reporting Tool, as well. Servicers should refer to the reporting requirements published by the program administrator on HMPadmin.com.
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 HAMP.
Freddie Mac is seeking to obtain delegations of authority from each mortgage insurer so 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.
- Borrowers who submit a complete Borrower Response Package on or before December 30, 2016, and who are otherwise eligible for incentives under the HAMP "Pay for Performance" program, subject to all other incentive eligibility requirements, will continue to receive the 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.
- Effective April 1, 2015, borrowers who remain in good standing in accordance with Guide Chapter 9205, Home Affordable Modification Program, and who have submitted the appropriate Dodd-Frank Certification form or Guide Form 720, Real Estate Fraud Certification, may be eligible to receive a HAMP Year Six “Pay for Performance” incentive. This incentive, which is in the form of a one-time, lump sum principle reduction of $5,000, is payable the month after the sixth anniversary of the HAMP Trial Period Effective Date. Please read Guide Bulletin 2015-1 for additional details.
Servicers will receive incentives for successfully completed HAMP modifications based on the term of delinquency when the trial period starts:
|Number of Days Delinquent at Trial Period Plan Effective Date||Incentive Amount on or after October 1, 2011 and Prior to April 1, 2014||Incentive Amount on or after April 1, 2014|
|Less than or equal to 120 days delinquent (150 days from Due Date of Last Paid Installment (DDLPI))||$1,600||$2,100|
|121 days or more delinquent to and including 210 days delinquent (151 to 240 days from DDLPI)||$1,200||$1,700|
|Greater than 210 days delinquent (greater than 240 days from DDLPI)||$400||$900|
"Pay for Performance" 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.
Access Secured Resources
- Spreadsheet for Reporting Mortgages with Partial Principal Forbearance
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