HAMP, effective March 4, 2009, to Dec. 31, 2012, for mortgages originated on or before Jan. 1, 2009, creates a modification process for loans through which borrowers who are in default, at risk of default or in foreclosure can have their loans modified to a more affordable monthly payment that is between 31 and 38 percent of their gross monthly income.
“As expected, the HAMP modification agreements are lengthy and require much more documentation than traditional modifications,” said Laura LaRaia, an attorney and director of customer service at MRG. “It has been our experience that the program has evolved over the last few months, and lenders need to continuously update their documents to maintain compliance. MRG’s staff of attorneys not only monitor the various regulatory and investor Web sites and update packages as needed, they also interpret how additional regulations affect the modification process now and going forward for our lending and servicing clients.”
Specifics of the loan modification program include:
* A 90-day trial period for borrowers before the modification takes effect
* Servicers or lenders providing borrowers with a two-step document process that includes one document that outlines the terms of the trial period and another that outlines the terms of the modification itself
* Borrowers must make three monthly payments at the modified payment amount and be current on the 90th day during the trial period, during which time servicers or lenders must treat this loan during the trial period as if it were in forbearance. The form for the HAMP trial period is a FNMA/FHLMC Uniform Instrument (Form 3156).
* At the end of the trial period, the borrower must complete step two of HAMP, the Home Affordable Modification Agreement (FNMA/FHLMC Form 3157).
In addition to meeting HAMP requirements, MRG also offers an array of other loan modification packages.
MRG offers a browser-based system for the preparation and delivery of compliant document packages, electronic disclosures, loan modifications and other services for mortgage lenders, banks and credit unions nationwide. MRG guarantees that its products are in compliance with the most recent legislative and regulatory changes.About MRG Document Technologies
Since 1980, Dallas-based MRG Document Technologies (MRG) has provided a variety of mortgage technology products including closing documents, loan modifications, electronic disclosures, fraud prevention and imaging integration to approximately 350 mortgage lenders, banks and credit unions throughout the United States. For more information about MRG, visit www.mrgdocs.com.
