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