Thursday, August 1, 2013

Attempting to modify 2nd mortgage? Read Supplemental Directive 13-05

2nd Mortgage Modifications - Supplemental Directive 13-05

Treasury just issued Supplemental Directive 13-05, which addresses the scenario of "when a borrower’s first lien is modified under HAMP and the servicer of the corresponding second lien is a 2MP participant, the 2MP servicer must offer to modify or extinguish the borrower’s second lien according to a defined protocol".

Specifically, this Directive addresses the following topics:
  • Matching Second Liens to First Lien GSE Standard Modifications
  • Dodd-Frank Certification Requirement for 2MP
  • Incorporating HFA Payments into the NPV Result for HAMP Tier 2
  • Handbook Mapping Clean-Up
So, if you or your client is attempting to modify a second mortgage, read this directive as its the roadmap to success.