On April 24, the U.S. Department of Housing and Urban Development changed its Distressed Asset Stabilization Program to require loan servicers to wait one-year before initiating a foreclosure action. Servicers will also be required to evaluate all borrowers for modifications under the Home Affordable Modification Program or other loss mitigation program. Release.
Home Affordable Modification Program
HAMP Developments
On November 30, Treasury and HUD announced a campaign to increase the number of mortgages that are converted to permanent modifications from those currently in the trial phase of the Home Affordable Modification Program. The initiatives include: (i) increased servicer accountability for modifications, (ii) additional tools for borrowers, and (iii) the engagement of state and local stakeholders to increase awareness of the program and expand resources to borrowers. Treasury Release.
Also on November 30, Treasury published Supplemental Directive 09-09 which provides guidance on and terms of the Home Affordable Foreclosure Alternatives Program. This program offers financial incentives to servicers and borrowers who utilize a short sale or deed-in-lieu to avoid foreclosure on a HAMP-eligible loan. HAMP Release. Supplemental Directive.