HAMP continues to underwhelm panel, Treasury defends ‘new standard’

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HAMP continues to underwhelm panel, Treasury defends ‘new standard’ Treasury defends HAMP as mortgage modifications dip in January Jon Prior was a reporter with HousingWire through late 2012.

Home Foreclosures: Will Voluntary Mortgage Modification Help Families Save Their Homes? Part II? : Hearing Before the H. Comm. on the. HAMP modifications are on a standard template that aims to reduce. 12 See Congressional Oversight Panel, supra note 9. 13 Treasury has extended the trial period to five months for HAMP modifications.

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 · NEW YORK (CNNMoney.com) — The Treasury Department’s foreclosure prevention efforts have been found lacking — again. Last April, the Congressional Oversight Panel found the program to be.

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HAMP defines a standard for an affordable and sustainable modification across the industry, set at 31 percent of gross monthly income. Until HAMP, the industry did not have a standard process for mortgage modifications, an affordability standard, or standard timelines by which modifications would be processed.

Another important feature of HAMP is that the Treasury requires lenders and servicers to apply a consistent process in calculating an affordable loan modification. In fact, the HAMP approach is similar to the process used in "Mod in a Box": A loan can be modified only if it yields a positive NPV using a "waterfall" procedure.

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Treasury FHA-HAMP: Overview. In July 2009, FHA launched the FHA-Home Affordable Modification Program to provide assistance to borrowers to modify their mortgages to provide more affordable payments. Under Chapter VI of the MHA Handbook, FHA-insured first lien mortgage loans that are modified under FHA-HAMP are eligible for certain incentive payments.

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