New Loan Modification Guidelines Issued By HUD for 2010
February 2, 2010 by dirkknudsen · Leave a Comment
Many Borrowers Will Try and Modify Before Loosing Their Home
A note on Loan Mods: From www.realtrends.com
“As part of the Administration’s ongoing housing market stabilization plan, the U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) released updated guidance for servicers participating in the Administration’s mortgage modification program. This guidance refines the documentation requirements in order to expedite conversions of current trial modifications to permanent ones.
On December 23, 2009, the Administration required most trial modifications to be placed in a temporary review period to ensure that all borrowers are being fairly evaluated for the program. During this temporary review period, servicers were not permitted to cancel an active HAMP trial modification for any reason other than failure to meet the HAMP property eligibility requirements.
The updated process requires that key documents, including proof of income, be obtained from the borrower before a borrower evaluation can begin.”
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