Finding Your Hamp Mortgage Servicer: Who And How?

The Home Affordable Modification Program (HAMP) is a US government initiative to help homeowners at risk of foreclosure by reducing monthly mortgage payments. HAMP encourages participating mortgage servicers to modify mortgages so that homeowners can avoid foreclosure. To find out if your mortgage servicer participates in the HAMP program, you can check at www.makinghomeaffordable.gov/contactservicer.html.

HAMP loan modification eligibility

The Home Affordable Modification Program (HAMP) was a loan modification program introduced in 2009 to help mitigate the impact of the 2008 subprime mortgage crisis. The program expired in 2016. However, it has helped nearly 5 million Americans get mortgage assistance to prevent avoidable foreclosures.

HAMP's goal was to offer homeowners who are at risk of foreclosure reduced monthly mortgage payments that are affordable and sustainable over the long term. To be eligible for the program, homeowners needed to show documented financial hardship and the ability to make their monthly mortgage payments after a modification. The mortgage loan also needed to be not owned or guaranteed by Fannie Mae or Freddie Mac.

There were also property requirements that needed to be met for HAMP eligibility. The property had to pass the net present value (NPV) test and have other eligibility standards. A property became eligible if the analysis showed that a lender or investor currently holding the loan would make more money by modifying the loan rather than foreclosing. The home also had to be habitable and have an unpaid principal balance of under $729,750.

Additionally, eligibility was contingent on whether the homeowner was up-to-date on their mortgage payments. Homeowners with a loan-to-value ratio (LTV) of more than 80% were also eligible for the program.

How to find a HAMP-participating mortgage servicer

The Home Affordable Modification Program (HAMP) is a US government initiative to help homeowners at risk of foreclosure by reducing monthly mortgage payments. The program includes incentives for homeowners, servicers, and investors to encourage successful mortgage modifications.

To find a HAMP-participating mortgage servicer, you can follow these steps:

• Check if you meet the HAMP eligibility requirements. To be considered for HAMP, you must be delinquent on your mortgage payments, typically for at least 90 days. Additionally, you must live in the premises you are attempting to modify the mortgage on, and the mortgage on a single-family residence cannot exceed $729,750. Your first mortgage payment, property taxes, homeowners insurance, and homeowners association fees must also amount to more than 31% of your monthly gross household income.
• Visit the official website of the program at www.makinghomeaffordable.gov. Specifically, go to www.makinghomeaffordable.gov/contactservicer.html to check if your mortgage servicer participates in the HAMP program.
• If your servicer is listed as a participant, gather the necessary documents and submit your HAMP package to your servicer's Loss Mitigation Department. This department within your mortgage servicer's organization will handle your application and determine if they will offer you a loan modification.
• If you need further assistance, you can contact the FHA National Servicing Center through the U.S. Department of Housing and Urban Development (HUD). They offer loss mitigation programs and informational resources to assist homeowners facing financial hardship and can provide additional guidance on finding a HAMP-participating mortgage servicer.

By following these steps, you can identify a HAMP-participating mortgage servicer and initiate the process of applying for more affordable monthly mortgage payments.

HAMP package submission

The Home Affordable Modification Program (HAMP) is a US government initiative to help homeowners at risk of foreclosure by reducing their monthly mortgage payments to a more affordable level. The program is voluntary and supports servicers' efforts to modify mortgages while protecting taxpayers' interests.

To be eligible for HAMP, you must meet specific requirements, including being delinquent on your mortgage payments (the standard is 90 days delinquent), living in the premises you are attempting to modify the mortgage on, and having a mortgage on a single-family residence that does not exceed $729,750. Additionally, your first mortgage payment, property taxes, homeowners' insurance, and homeowners' association fees must total more than 31% of your monthly gross household income.

If you meet the eligibility criteria, the next step is to check if your mortgage servicer participates in the HAMP program. You can do this by visiting www.makinghomeaffordable.gov/contactservicer.html. Once you have confirmed that your servicer participates, you can proceed to put together your HAMP package and submit it to their Loss Mitigation Department.

It is important to note that there may be specific deadlines and requirements for submitting the HAMP package, and these may vary depending on your circumstances and the servicer. Therefore, it is advisable to carefully review the guidelines and requirements provided by your servicer and seek guidance if needed. Additionally, the HAMP program was set to undergo changes in 2017, so it is essential to stay updated with the latest information and guidelines.

HAMP modification incentives

The Home Affordable Modification Program (HAMP) was a federal initiative launched in 2009 to help struggling homeowners avoid foreclosure by modifying their mortgage loans to make them more affordable. HAMP's primary goal was to reduce monthly mortgage payments to no more than 31% of a homeowner's gross income, thereby preventing foreclosures and stabilizing the housing market.

HAMP provided financial incentives to both lenders and borrowers to create a sustainable solution for struggling homeowners amidst a widespread economic crisis. Firstly, lenders were incentivized by the Obama administration, which offered thousands of dollars in incentive payments to lenders, homeowners, and mortgage investors. Additionally, homeowners who paid their modified loan payments on time for five years were eligible for a $5000 credit applied to reduce the principal debt on their first mortgage. This dual-incentive structure empowered homeowners while also actively encouraging lenders to participate in recovery efforts.

To qualify for HAMP, borrowers had to demonstrate financial hardship, with mortgage payments exceeding 31% of their gross monthly income. The modifications typically involved adjustments to the interest rate, loan term, or monthly payment amount to make the loan more manageable for the borrower. It is important to note that HAMP's modifications were introduced on a temporary basis but became permanent after the homeowner made three on-time payments.

While HAMP successfully modified millions of loans, it faced challenges due to complex application processes and low borrower engagement. Critics also argued that HAMP's modifications were temporary fixes rather than long-term solutions, which impacted its ability to significantly reduce foreclosure rates. Despite these challenges, HAMP highlighted the importance of proactive measures to stabilize the housing market during economic downturns and demonstrated the positive role of government intervention in preventing widespread foreclosures.

HAMP and Principal Reduction Alternative (PRA)

The Home Affordable Modification Program (HAMP) is a program designed to help financially struggling homeowners avoid foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term. HAMP is the largest program within the Making Home Affordable (MHA) Program. It was established by the U.S. Departments of the Treasury and of Housing and Urban Development to help distressed homeowners lower their monthly mortgage payments.

HAMP works by encouraging participating mortgage servicers to modify mortgages so struggling homeowners can have lower monthly payments and avoid foreclosure. It has specific eligibility requirements for homeowners and includes strict guidelines for servicers. The program includes incentives for homeowners, servicers, and investors to encourage successful mortgage modifications. Families in this program typically reduce their monthly payments by a median of more than $530 each month.

The Principal Reduction Alternative (PRA) is a part of the HAMP modification. Since the last quarter of 2010, if a mortgage loan is being considered for a HAMP modification and if the ratio of the amount owed to the value of the home is greater than 115%servicer must consider whether a PRA principal reduction should be effected as one part of the HAMP modification. For HAMP modifications that include a PRA principal reduction, the unpaid principal balance of the modified loan is divided into an interest-bearing principal amount and a non-interest-bearing PRA Forbearance Amount. If the homeowner then achieves a timely payment history over a three-year period, the entire PRA Forbearance Amount is eventually reduced to zero.

To encourage participation in HAMP modifications that include a PRA principal reduction, the government makes additional incentive payments over three years to the investor. These additional incentives are called "PRA investor incentive payments". The size of the PRA investor incentive payments depends on the amount of principal reduced, the loan-to-value ratio, and the loan's payment history before the HAMP modification. The PRA investor incentive payments range from 6% to 21% of the principal amount reduced.

Frequently asked questions