Fannie Mae's Guidelines for Servicers reg. HAMP, Forbearance, and PRP

[worrywart1]

Hello Everyone,

I found this information on Fannie Mae's website. We just received a certified letter from our servicer that our house is officially up for sale. We entered into forclosure on 10/9.

Freaking rediculous. Anyhow, some key points extrapolated from their guidelines to servicers.

Announcement 09-30 October 20, 2009

Amends these Guides: Servicing

Retirement of the HomeSaver Forbearance™ and Conversion to the Payment Reduction Plan™

Introduction

This Announcement introduces the Payment Reduction Plan™ (PRP). The PRP will replace the HomeSaver Forbearance™ (HSF) program in Fannie Mae’s Workout Hierarchy. The goal of the PRP is to allow for additional time to identify a permanent foreclosure prevention solution for a borrower who has encountered a financial hardship while having the borrower maintain a payment stream.

Purpose

The purpose of a PRP is to provide a borrower with temporary payment relief while the servicer and the borrower work together to find the appropriate permanent foreclosure prevention solution. Under a PRP, the servicer can reduce a borrower’s monthly principal and interest (P&I) payment by up to 30 percent for up to six months.

Background

On April 21, 2009, Fannie Mae announced the HSF in Announcement 09-05R, Reissuance of the Introduction of the Home Affordable Modification Program, HomeSaver Forbearance™, and New Workout Hierarchy (Reposted May 15, 2009). HSF is a loss mitigation option available to delinquent borrowers (or borrowers facing imminent default) that do not qualify for the Home Affordable Modification Program (HAMP). Under the terms of HSF, up to 50 percent of the borrower’s contractual monthly mortgage payment (principal, interest, taxes, insurance, and other escrow (PITIA)) can be reduced for up to six months while a permanent solution is explored. The program was designed to demonstrate borrower willingness to pay a reduced monthly payment while providing additional time to determine a more appropriate permanent solution.
The HSF program will be retired effective October 31, 2009.

There's a lot more..too much to reference. I'm not in the right state of mind to deal with all of this but thought I would at least try to inform others about Fannies stance. Long story short, Fannie is telling the servicers to do everything possible to help the homeowners AVOID forclosure. Not only that, Fannie also addresses those with PMI and states that Insurers are to work with the servicers in helping homeowners as well.

Knowledge is power people. I'm calling my servicer Colonial Savings FA and talking to one of the counselors about this when Monday comes. Here's the website address for Fannie.
https://www.efanniemae.com/home/index.jsp

[Do not want to lose it]

worrywart1
Thank you for that info! Maybe time is on our side.

[lkszip]

Yes, GREAT info, thank you!

[BobandArlyn]

You are right, knowledge is power. Thank you for the info. I hope you this helps you when you call.

[caldwellb02]

Okay. Good info. Keep us informed. Knowledge IS power.

Power to the People!