HAMP® Borrower Solicitation Requirements
August 17, 2016 – Effective immediately as announced in Guide Bulletin 2016-14, we are revising our evaluation model clauses in Guide Exhibit 93 and Streamlined Modification borrower solicitation letters in Guide Exhibits 1191, 1191A and 1191B, to align with revisions to certain Home Affordable Modification Program (HAMP®) requirements.
June 6, 2016 – We're revising requirements related to the HAMP expiration, as announced in Guide Bulletin 2016-10. We're providing HAMP guidance to Servicers so they can better evaluate requests and assist borrowers.
As of September 1, 2016, Servicers are no longer required to, and on and after November 1, 2016, Servicers must not:
- Include Guide Form 710A in Borrower Solicitation Packages.
- Refer to HAMP or HAMP-related programs, except:
- As required under applicable law, such as for a Borrower's evaluation and denial of a mortgage modification Trial Period Plan.
- With respect to an upcoming interest rate adjustment under HAMP.
- Refer to HAMP "Pay for Performance" incentives in written solicitation materials sent to Borrowers, except with regard to:
- Notifications of upcoming interest rate adjustments under HAMP.
- Required notices to Borrowers pertaining to the HAMP Year Six Pay for Performance incentive.
- Servicers must contact the borrower as early in the delinquency cycle as possible to secure a payment or payment arrangement but no later than the 36th day after the due date of an unpaid monthly installment.
- Servicers must send the borrower at least one general solicitation no later than the 45th day after the due date of an unpaid monthly installment if quality right party contact and a resolution to the delinquency have not been achieved.
- Servicers must provide in its solicitation the specific date by which the borrower must respond with the required information and documentation ("The Borrower Response Package"), which must be 30 days from the date the solicitation was sent.
Refer to Guide Chapter 9102 for requirements related to borrower solicitation and required communication upon quality right party contact.
Tools and Documentation
Trial Period Documents
- HAMP Trial Period Plan Notice, located in Guide Exhibit 93, Evaluation Model Clause
- Form 1119, Counseling Referral Letter, that Servicers may use to inform the borrower they are required to attend credit counseling.
Permanent Modification Documents
If a borrower is eligible for a permanent HAMP modification, Servicers must send the following documents:
- Form 1118, Agreement Cover Letter – Updated
- Uniform Instrument Form 3157, Home Affordable Modification Agreement,
Also available in Spanish (Uniform Instrument Form 3157s).
- HAMP Year Six Pay for Performance incentive – when sending a borrower notice on eligibility for this, include either the:
- Dodd-Frank Certification, or
- Freddie Mac equivalent, Form 720, Real Estate Fraud Certification.