HAMP Supplemental Directive on Borrower Outreach

On March 24, Treasury issued a supplemental directive providing guidance to servicers of non-agency first lien mortgage loans for improving outreach to borrowers. The changes, effective June 1, include: (i) clarifying the requirement to proactively solicit borrowers with two or more due and unpaid payments for HAMP, (ii) prohibiting referral to foreclosure until a borrower is determined to be ineligible for HAMP or reasonable solicitation efforts have failed, (iii) requiring servicers to certify that borrowers are not HAMP-eligible and give borrowers 30 days to respond to a Non-Approval Notice before conducting a foreclosure sale, (iv) if requested, requiring servicers to consider borrowers in active bankruptcy for HAMP, and (v) clarifying the requirement that servicers use reasonable efforts to obtain approval from investors to participate in HAMP. Supplemental Directive.