These updates are set to be released to lenders regarding the HAMP program and the servicers reporting requirements.
Trial and Official Loan Setup
The difference between the delivered Front Ratio Before Modification and the calculated Front Ratio Before Modification must be less than or equal to 1%.
Front Ratio Before Modification = (Monthly Housing Expense Before Modification/Monthly Gross Income)
Trial Loan Setup
A trial loan is now allowed if a Government Monitoring/NPV Data Only Transaction has been submitted with a Trial Fallout Reason Code that disqualifies the loan for the HMP Servicer Number/Servicer Loan Number
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- 3 – Property Not Owner Occupied
- 4 – Other Ineligible Property (i.e., Property Condemned or has more than 4 units)
- 11 – Loan Paid off or Reinstated; 14 – Trial Plan Default
A trial loan is not allowed if the borrower or co-borrower Social Security number matches any Social Security numbers associated to loans that failed the trial period (Government Monitoring/NPV Data Only Transaction on which the Trial Fallout Reason Code provided disqualifies the loan).
Official Loan Cancellations
An Official Loan Cancellation cannot be submitted for a loan that has been transferred.
