Is participation in the Home Affordable Modification Program mandatory for servicers and investors?
Servicer participation is mandatory for all loans owned or guaranteed by Fannie Mae or Freddie Mac (Government Sponsored Enterprises or GSEs). Participation in the modification program is voluntary for servicers and investors of non-GSE loans. However, substantial incentives are available to servicers, investors and borrowers who complete modifications under HAMP with most major servicers already committed to the Program. A current list of participating servicers is available at www.MakingHomeAffordable.gov. Servicers not currently listed have until October 3, 2010 to opt into the program. Participating servicers sign a contract with Fannie Mae, as Treasury’s financial agent, through which they agree to review every potentially eligible borrower who asks to be considered for the Making Home Affordable Program. To ensure that a borrower currently at risk of foreclosure has the opportunity to apply for a modification under HAMP, participating servicers may not proceed with a foreclosure
Related Questions
- Is the Home Affordable Modification mandatory or can investors or servicers choose not to participate?
- What are the Home Affordable Refinance Program (HARP) and Home Affordable Modification Program (HAMP)?
- How does the Home Affordable Modification Program work? Do servicers work directly with Treasury?
