Servicing Guide

Published September 9, 2020

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What are the servicer requirements related to the expanded borrower “pay for performance” incentive for a Fannie Mae Hamp Modification?

The following table outlines the servicer requirements related to the expanded borrower “pay for performance” incentive.

The servicer must...
 

Provide written notice of the potential for receipt of the expanded borrower “pay for performance” incentive to a borrower in good standing prior to the fifth anniversary of the Fannie Mae HAMP modification effective date as described in the following table.

Take the following actions if by the 150 th day before the fifth anniversary of the Fannie Mae HAMP modification effective date the servicer has not received an executed Real Estate Fraud Certification (Form 720) or U.S. Treasury Department’s (Treasury) “Dodd Frank Certification”:
If at least one notification has... Then the servicer must provide at least...
been sent

one additional notice no later than 60 days prior to the fifth anniversary of the Fannie Mae HAMP modification effective date.

not been sent

two written notices that are:

  • at least 60 days, but no more than 150 days, prior to the fifth anniversary of the Fannie Mae HAMP modification effective date; and

  • at least 30 days apart.

 

      The servicer is authorized to

  • send a notice or notices for the expanded borrower “pay for performance” incentive at any time leading up to the 150 th day before the fifth anniversary of the Fannie Mae HAMP modification effective date;

  • include any notice for the expanded borrower “pay for performance” incentive in other notices sent to the borrower, provided the timing requirements are met;

  • provide other communications in addition to the required written notices to the borrower of the potential for receipt of the expanded borrower “pay for performance” incentive;

  • include information in the notice indicating that the mortgage loan could be re-amortized if eligible on or after the sixth anniversary of the Fannie Mae HAMP modification effective date, provided the borrower receives the expanded borrower “pay for performance” incentive; and

  • send no additional notices if the borrower returns an executed Form 720 or Treasury’s “Dodd Frank Certification” after a prior notification.

 

Include a copy of Form 720 or Treasury’s “Dodd Frank Certification” in the written notice to eligible borrowers, if not already collected.

Note: The servicer must notify the borrower that he or she must have submitted an executed Form 720 or Treasury’s “Dodd Frank Certification” on or before the sixth anniversary of the Fannie Mae HAMP Trial Period Plan effective date in order to be eligible for the expanded borrower “pay for performance” incentive. The servicer is authorized to collect an executed Form 720 or Treasury’s “Dodd Frank Certification” before the mortgage loan modification is complete. If the servicer elects to collect an executed Form 720 or Treasury’s “Dodd Frank Certification” before the mortgage loan modification is complete, it must be clearly communicated to the borrower that eligibility for and settlement of the mortgage loan modification is not contingent on the submission of an executed Form 720 or Treasury’s “Dodd Frank Certification.”

  Determine which person must execute Form 720 or Treasury’s “Dodd Frank Certification,” and the required documentation to retain, when there has been a change in borrowers (for example, death and/or a qualifying assumption) under the original permanent Fannie Mae HAMP modification by referring to HMPadmin.com for Treasury’s policy clarifications and reporting requirements.

For more information please see: D2-3.2-04, Fannie Mae HAMP Modification.

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