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Lance Perry, Director of Loss Mitigation NCCI:  NWCUCA

We see it in the newspaper.  We watch it on the news.  The media frenzy over the housing crisis has created an all-too familiar issue in the minds of many Americans.  These stories frequently describe the impact of the housing crisis on the economy and with it, - the government's many modification, incentive and forbearance programs.  With the U.S. government spending on incentives for mortgage servicing companies that reduce payments for troubled homeowners, as well as incentives for borrowers and investors, is it is no wonder lenders and borrowers are eager to find out how to get involved with the programs. And, one of those programs is HAMP, the Home Affordable Modification Program.

The HAMP program was designed to help 3 to 4 million homeowners avoid foreclosure by modifying loans to an affordable, sustainable and long-term level.  To be eligible, borrowers must meet certain criteria, such as having property be their primary residence and/or having a mortgage originated before Jan. 1, 2009.  Many borrowers interested in participating in the HAMP program will first and foremost, find out if they qualify for the program, then inquire if their servicer is approved in order to partake in the program.   

To begin soliciting the program to their borrowers, credit unions can apply to be HAMP approved through Fannie Mae before Dec. 31, 2009.  Any servicer with a portfolio containing mortgages funded before the year 2009 is eligible. After a credit union is HAMP-approved and a borrower's eligibly is verified, a servicer can begin the series of steps to adjust the monthly mortgage payment, including a three-month modification trial period. 

Servicers will subsequently find after the trial begins that not all modification packets will be completed correctly. One large servicer recently reported publicly that an amazing 99 percent of mod packages returned by borrowers were missing important documents.  For additional aid to complete HAMP packets, outsourcing has proven to be an excellent tool.  Borrower contact firms like National Creditors Connection, Inc. have begun helping servicers with trial loan modification documents and payments, as well as trailing documents and physical appointments with borrowers.  By assisting borrowers face-to-face who have not completed the HAMP modification packet distributed by their servicer, the packet can be completed effectively.  Face-to-face borrower assistance is provided in the form of signatures, load modification document reviews or verification of tenants.  After the packet is completed and the modified three-month payment trial period begins, up to three field call series can be run or mobile Notaries are used to keep the borrower paying and the trial successful.

For more information on participating in the HAMP program or other Making Home Affordable plans, visit www.hmpadmin.com. 

For more information on borrower contact assistance, contact Lance Perry, lperry@nationalcreditors.com.