HAMP Starts Review of Mortgage Modification Trials

ForeclosuresThe U.S. Treasury has ordered a review of all mortgage modification trials set to expire on or before Jan. 31, 2010, as part of the Obama Administration’s efforts to accelerate permanent mortgage relief and rescue more borrowers from foreclosure.
Administrators of the government’s Home Affordable Modification Program, or HAMP, posted the announcement on its website alerting servicers that they need to “reach out to borrowers.”
“Treasury has been working with servicers to ensure they reach out to borrowers in active trial modifications, collect all necessary documentation from borrowers, make eligibility determinations in a timely manner, and convert eligible borrowers into permanent HAMP modifications,” administrators said in a statement.
During the review period, Treasury has also ordered that servicers continue to convert eligible borrowers in active HAMP trial modifications to permanent status “as quickly as possible in accordance with existing program guidance.”
Mortgage servicers “may not cancel an active HAMP trial modification” during this period “for any reason other than failure to meet the HAMP property eligibility requirements,” according to the HAMP administrative order.
During the review period, services also must send written notification to borrowers to inform them that they are at risk of losing eligibility for a permanent modification because the borrower has failed to make all required trial period payments; or failed to submit all required documentation; or both.
“The notice must provide the borrower with the opportunity to correct any error in the servicer’s records or submit any missing documents or payments within 30 days of the notice or through January 31, 2010, whichever is later,” administrators said.
According to the latest HAMP progress report, only 31,382 modified mortgages have been converted to permanent status, out of 728,000 trials underway. The program has come under fire from mortgage industry experts for moving too slowly and not addressing the growing problem of borrowers facing negative equity. They say the reduction of mortgage principals should be the focus of the program.

3 thoughts on “HAMP Starts Review of Mortgage Modification Trials

  • December 30, 2009 at 12:47 am
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  • Pingback:HAMP Reviews on Mortgage Modification Trials | NW Indiana Loan Guy Blog

  • March 8, 2010 at 1:49 pm
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    The modification process is terrible. I just completed the trial period on March first. During the trial period they lost my paperwork 2 times. The third time I sent in the paperwork was a week before the deadline they called me and yelled at me because they said they did noy have it and I had to jump through a bunch of hoops at the last second. I still have not heard anything about the review of my situation and now I need to start thinking about making my next mortgage payment. As I am now finished with my trial period and I cant get any answers I dont know how much to pay or when its even due for my upcoming payment.
    My advice for anyone in this process is to make copies/scans of all paperwork for your records before you send it. Make sure that everything that you send has a tracking numbers for proof that it was sent and received and dont lose them because you will need them many times over. Also keep track of times and dates. I did all of this and without it I would have been in trouble. Also Be advised to go over your situation and paperwork many, many times as you will never talk to the same person twice.

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