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.