Wednesday, October 8, 2014

New Amendment Allows For Borrowers to Re-Modify Loans That Have Already Received a HAMP Modification If They Experience a New Hardship

Great news for those struggling with their mortgage after previously receiving a modification! Now, you can re-modify your mortgage due to recent amendments to the Making Homes Affordable (MHA) Handbook. On September 30th, Treasury released Supplemental Directive 14-03, which provides new guidelines, updates and clarifications that servicers must follow.

To better understand these new amendments, previously, a servicer could not re-modify a loan that received a HAMP permanent modification until either the loan lost good standing or more than 5 years had passed since the permanent modification effective date.

Now, the new rule permits a loan that was previously permanently modified under HAMP to be re-modified regardless of loss of good standing so long as, either, the borrower has experienced a change in circumstance, or at least 12 months have passed since the HAMP Modification Effective Date. This amendment will allow for borrowers to re-modify loans that have already received a HAMP permanent modification if they experience a new hardship or if one year has passed.