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Guide Bulletin Announces Updated Forbearance and NPV Requirements and Important Reminders for HAMPNovember 2, 2009 Single-Family Advisory E-mail

Today, we issued Single-Family Seller/Servicer Guide (Guide) Bulletin 2009-26, which announces the following updated Home Affordable Modification program (HAMP) forbearance and net present value (NPV) requirements that will be effective on December 1, 2009:

  • If it is necessary to use partial principal forbearance to achieve the target payment as outlined in Guide Section C65.6, the Servicer must apply the new limit on the amount of permissible forbearance, as described in today's Guide Bulletin, to determine if the mortgage is eligible for HAMP.
  • If the U.S. Department of the Treasury (Treasury) NPV result is negative $5,000.01 or lower, the mortgage is ineligible for HAMP, and the Servicer should consider the borrower for another foreclosure alternative.

Servicers must input mortgage data into the Treasury NPV Model when qualifying a borrower for the Trial Period. You may access the Treasury NPV Model on HMPadmin.com.

Important Guide Bulletin Reminders

  • As a follow-up to the October 8, 2009, Single-Family Advisory e-mail, we are reminding Servicers of the HAMP changes that were announced by Treasury in Supplemental Directive 09-07, which included a new streamlined borrower evaluation process. It also provides information about the U.S. Department of Labor Unemployment Benefit Estimation Tool, which Servicers may use to estimate a borrower’s maximum potential unemployment insurance benefit and the duration for receiving the benefit income.
  • On October 21, 2009, the Internal Revenue Service (IRS) published a new Short Form Request for Individual Tax Return Transcript, Form 4506T-EZ, to streamline the income verification process Servicers must complete under HAMP. Servicers may begin using this new form in place of the existing Form 4506-T. The new form is available on Freddie Mac’s HAMP Web page.
  • As a follow-up to the October 14, 2009, Single-Family Advisory e-mail, Freddie Mac's Imminent Default Indicator TM (IDI) will be available soon. IDI is a software application that will help you determine if a borrower with a Freddie Mac-owned or guaranteed mortgage is in imminent default. To help you prepare to implement IDI, you should review the Imminent Default Indicator Technical Specifications Version 1.0 that is available as a secure HAMP program Web link on our HAMP Web page.
  • The Data Collector is being retired and replaced with the new HAMP Reporting Tool for reporting HAMP data to the program administrator. Please read the program administrator's September 17, 2009, HAMP Update for more information.

Workout Prospector Reminder

As of November 1, 2009, all Freddie Mac Servicers must now use Workout Prospector to evaluate all borrowers for a modification under HAMP. Servicers may rely on their own proprietary or third-party system, provided they adhere to the requirements outlined in Guide Section C65.6(g). If a modification cannot be completed under HAMP, the Servicer must continue to use Workout Prospector to evaluate the borrower for other Freddie Mac foreclosure alternatives.

For more information, visit these resources:

© 2010 Freddie Mac

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