In February 2009, the Obama Administration introduced the Making Home Affordable Program, a plan to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure. In March 2009, the Treasury Department (Treasury) issued uniform guidance for loan modifications across the mortgage industry and subsequently updated and expanded that guidance in a series of policy announcements.
The Making Home Affordable Program Handbook for Servicers of Non-GSE Mortgages (4.4) is intended to provide a consolidated resource for programmatic guidance related to the MHA Program for mortgage loans that are not owned or guaranteed by Fannie Mae or Freddie Mac (Non-GSE Mortgages). Servicers of mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac should refer to any relevant guidance issued by the applicable GSE. In addition to the applicable guidance in this Handbook, servicers of mortgage loans insured or guaranteed by a federal agency, such as the Federal Housing Administration or Rural Housing Service, should refer to any relevant guidance issued by the applicable agency.
If you are a real estate professional working with a homeowner and his or her mortgage servicer on the Home Affordable Foreclosure Alternatives (HAFA) program and would like more information on servicer-specific HAFA policies, please refer to the servicer eligibility matrix.
Servicer Debt-to-Income Ratio under Second Tier HAMP
Supplemental Directive 12-09 provided servicers with flexibility to select a post-modification debt-to-income (DTI) range under HAMP Tier 2 suitable for their portfolio and as provided in the Supplemental Directive, effective February 1, 2013. In addition, effective July 1, 2015 Supplemental Directive 14-02 provided servicers with flexibility to determine whether or not a minimum 10% payment reduction threshold would apply under HAMP Tier 2. DTI ranges and payment reduction threshold provided by the largest servicers.