MHA issued Supplemental Directive 17-01 (Supplemental Directive), providing administrative updates and clarifications to the Home Affordable Modification Program (HAMP) and the Second Lien Modification Program (2MP). The updates and clarifications cover the following topics: evaluation of borrower information upon submission of an “initial package”; streamline HAMP Affidavit (used when converting a trial modification to a permanent modification); solicitation of financial counseling for borrowers at risk of default; base NPV model; and principal curtailments following modification. In addition, the Supplemental Directive provides guidance to servicers regarding GSE HAMP Loans sold as part of either a non-performing or re-performing loan sale and the eligibility of such loans to receive financial incentives through the Troubled Asset Relief Program. The Supplemental Directive went into effect April 14, 2017.
