Is Congress really trying to help us?

HAMP-New information about pending legislation as of October 2009 HAMP and Preserving Homes and Communities Act

The following information was taken from HAMP UPDATE 9-1-09

I am offering it here to supplement the ongoing research into the foreclosure issue and how it is being resolved. Along with any other useful or formal information I find in my research that may have a bearing on your personal situation. This PDF memo is helpful only as it refers to how Lenders are determining the current value of your home. If your Lender used an older model- they may need to revalue your home based on this information.

HAMP UPDATE September 1, 2009
New Base NPV Model v3.0 and Spreadsheet Tool; HAMP Reporting Reminder
New Base NPV Model v3.0 and Base NPV Model Spreadsheet Tool

Today, Tuesday, September 1, 2009, a new Base NPV Model v3.0 and new Base NPV Model spreadsheet tool are available in the Participating Servicer section of HMPadmin.com.

As previously communicated on August 24, all three versions of the Base NPV Model (versions 1.0, 2.0, and 3.0) are now available to servicers participating in the Home Affordable Modification Program (HAMP) via the new Base NPV Model spreadsheet tool. Servicers must enter the "NPV Date" in the spreadsheet tool (this is the date of the first NPV test used to determine trial modification eligibility) in order for the tool to route each loan to the appropriate version of the Base NPV Model.

Importantly, as previously communicated on August 7, beginning today, Home Price Decline Protection (HPDP) incentives are in effect. Servicers must enter the NPV Date to determine HPDP incentive payments. HAMP-modified non-GSE loans with an NPV Date of September 1, 2009 (or after) are eligible for HPDP incentive payments.

Important Actions for Servicers beginning September 1, 2009
For servicers currently using the Base NPV Model: Submit all loans (new submissions or a re-run through the NPV test) using the new Base NPV Model spreadsheet tool.
Servicers must enter the NPV Date in the last column of the spreadsheet tool (this is the date of the first NPV test used to determine trial modification eligibility).

Important: Servicers must use the correct NPV Date to ensure NPV test consistency.
For servicers currently using an NPV model that has been implemented or customized* for their own systems: Submit new loans (loans submitted on or after September 1, 2009) using their version of NPV Model v3.0 and, when necessary, re-run loans with the version of their NPV model originally used to determine trial modification eligibility.

Use the Supplemental Documentation -- FAQs for additional guidance on NPV test consistency requirements as detailed in questions 47, 48, and 49 (available in the Programs/Supplemental Directives section of HMPadmin.com).

Use the following, available in the Participating Servicer section of HMPadmin.com:

Base NPV Model Documentation v3.0 for clarification on ARM/IO Reset or Recast as detailed in part IV, Base NPV Model Assumptions; and for clarification on timing of the non-delinquency modification incentive for investors as detailed the part V, Base NPV Model Equations.

Base NPV Model User Guide for updates to various fields in the inputs table and updated error code 54.

Updated Test Cases and Test Case Definitions, which now include sample HPDP incentive payments.
*(Servicers with at least a $40 billion servicing book may choose to build and implement a proprietary model.)

HAMP Reporting Reminder
All participating servicers should report August HAMP activity to the U.S Treasury no later than 8:00 p.m., ET, Friday, September 4th (the fourth business day of the month). This includes:
1.Initial loan setup data and the 1st trial period payment
2.Loan trial period payments (other than the 1st payment)
3.Loan setup data for official modifications effective in September Note: Official modifications not received by the fourth business day will not receive incentive compensation in September.
4.Loan payments for official modifications that were effective August 1, 2009.
Servicers should ensure the effective date of the modification is reflected accurately in the loan setup data reported.

For guidance on trial period and modification timing, as well as guidance for submitting loan-level data for processing during the HAMP trial period, refer to Supplemental Directive 09-03. Also refer to the HAMP Servicer Reporting Requirements, 2009 HAMP Operational

Reporting Calendar, and the following job aids
Reporting Initial Loan Setup Data and the 1st Trial Period Payment to the U.S. Treasury
Reporting Loan Trial Period Payments to the U.S. Treasury
Reporting Loan Setup Data for Official Modifications to the U.S. Treasury
Reporting Loan Payment(s) for Official Modifications to the U.S. Treasury
Questions?
Contact the HAMP Support Center at support@hmpadmin.com or 1 (866) 939-4469.
This message was sent via email to servicer representatives registered for HMPadmin.com on September 1, 2009.