Making hoMe affordable PrograM _Mha_ suPPort

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Making hoMe affordable PrograM _Mha_ suPPort Powered By Docstoc
					   Making hoMe affordable
   PrograM (Mha) suPPort

                    On February 18, 2009, the Making Home               Home Affordable Modification
                    Affordable Program (MHA) was announced by           Program (HAMP)
                    President Obama, and details of the plan were
                    released on March 4, 2009. MHA provides             The goal of HAMP is to help troubled
                    homeowners with new access to refinancing           borrowers who face hardship and have
                    and loan modification options. The plan             defaulted or are at imminent risk of default,
                    represents a $75 billion homeowner stability        as well as to help stabilize communities.
                    initiative designed to help up to nine million      The program reduces mortgage payments
                    families restructure or refinance their home        for homeowners, provides for a trial period
                    mortgages to avoid foreclosure. What is unique      before the modification becomes effective, and
                    about the financial stability plan is that it is    includes incentives for servicers and borrowers
                    designed to help not only those struggling to       to participate and succeed.
                    keep their homes, but also those who want to
                    refinance, but cannot because the value of their    How LPS Can Assist
                    home has fallen below what they owe. As a
                    result, MHA features two programs: the Home         LPS offers training, mentoring, consulting
                    Affordable Refinance Program (HARP) and             and implementation support on the
                    the Home Affordable Modification Program            following topics:
                                                                        MHA Program Guidelines (Including QA
                    Home Affordable Refinance                           and Compliance): Provide a review of the
                    Program (HARP)                                      HAMP and HARP eligibility guidelines;
                                                                        review business considerations by each
                    The goal of HARP is to help borrowers who           functional area of servicing; review general
                    are current on their mortgage loan to refinance     considerations for compliance, monitoring,
                    to better mortgage rates. The program targets       reporting, documentation storage and
                    homeowners who have remained current on             incentives; discuss where LPS services can
                    their mortgage payments, but are unable to take     provide assistance to an overall implementation
                    advantage of lower interest rates due to loan-      plan; and review services available for assisting
                    to-value increases associated with the decline in   in executing on your plans and needs.
                    their property value.

August 2009 • L27
MHA Compliance Audit Review: Assist                completes the trial period. LPS can also assist
in preparing for Freddie Mac, internal and/        with understanding mortgage insurance
or third-party compliance audits by reviewing      delinquency reporting for loans where a
the following MHA-related items: data              principal forbearance has been performed and
integrity, NPV calculation, waterfall process,     Freddie Mac reason codes for default and
underwriting guidelines, borrower incentive        EDR reporting.
program, borrower/mortgage/property
eligibility and loan-level fraud review.           Loan Modification Workstation: Assist with
                                                   implementing Loan Modification Screens.
Enhancement Training: Consulting and
training to keep you apprised of the most recent   System Updates Required when Modifying
system updates, along with recommendations         a Loan: LPS offers a Modification training
on how to use to manage and track MHA              class that covers system updates required when
loans and to ensure compliance with                a modification is performed.
MHA guidelines.
                                                   MSP Information Tracking: Assist with
Collection Workstation: Assist with setting        implementing the Task Tracking Workstation if
up Contact, Response and Reason codes              it is currently not being utilized. For clients that
for tracking imminent default loans and for        are utilizing the Task Tracking Workstation,
delinquency reporting. LPS can also assist         LPS can assist with setting up new tasks
with implementing DLQ1 and/or DLQ2                 specific to MHA.
for tracking trial period payment activity.
                                                   Loan Maintenance Workstation: Assist with
Loss Mitigation Workstation (Including             identifying and updating the necessary MSP
Sample Templates): Assist with implementing        fields related to MHA.
the Loss Mitigation Workstation, including
setting up loss mitigation steps and templates     Escrow Analysis Workstation: Assist with
specific to the HAMP.                              tracking the short spread amount for five years.
                                                   This includes utilizing the Proforma function
Default Reporting Workstation: Assist with         for producing initial escrow results for the
ensuring that the system is set up correctly to    modification.
report the appropriate status codes to Fannie
Mae and Freddie Mac during the HAMP trial          Mortgage Insurance Workstation: Assist
period and once the borrower successfully          with the auto termination process for
PMI when there are extended terms,                   LPS has resources available to augment your
premature cancellations and notifications            staffing needs.
to MI Companies.
                                                     Analysis of Purchase Servicing Agreements
Investor Reporting and Cash: Assist with             (PSAs): Assist in reviewing Purchase Servicing
implementing new Freddie Mac and Fannie              Agreements (PSAs) for private investors to see
Mae reporting requirements. LPS can also assist      if participation in MHA is allowed.
clients with the application of funds and the
modification-related transactions necessary          Implementation Management (Including
for capitalization.                                  an Implementation Project Plan): LPS
                                                     has resources available to assist clients with
Director and Director Scripting (Including           implementing MHA. LPS has also created a
the Mod Negotiator Script): Assist with setting      project plan to assist with the steps needed to
up and implementing Director scripts to walk         implement MHA. The project plan represents
representatives through screening borrowers          a starting point for you as you work through
for eligibility, obtaining financial information     the details pertinent to your organization’s
and calculating the appropriate workout. LPS         participation in the program.
can also assist with establishing Director Loan
Indicators for identifying loans in MHA.             How LPS Delivers Training,
                                                     Mentoring, Consulting and
Passport: Assist with developing Passport            Implementation Support
queries to identify loans eligible for MHA
and to identify loans as part of the                 LPS understands that in the current economy
solicitation process.                                clients want different options when requesting
                                                     assistance. Therefore, LPS is offering the
Documenting Processes and Procedures:                following options to assist you:
LPS has resources available to work with clients
to document processes and procedures that will       Webinar: LPS offers MHA Webinars on
need to be in place for MHA compliance.              topics based on client feedback and requests. In
                                                     addition, LPS has created Web-based training
Staff Augmentation: LPS recognizes that, with        courses on the following topics related to MHA:
the new MHA guidelines, clients may need             Director User Overview, Task Tracking in
access to industry and MSP knowledgeable             Director and Customer Service/Escrow
staff to play a key role within your organization.   Loan Maintenance.
Phone Support: LPS offers phone             PowerCell Web Site: LPS has added
support to assist clients with specific     a section under “In the Spotlight” on
questions related to MHA.                   the PowerCell Web site that includes
                                            a question and answer document and
Onsite Support: LPS offers onsite           information that is updated weekly on
support to assist clients with              both the refinance and modification
implementing MHA. LPS also offers           programs. This information can assist your   Leverage LPS’ powerful
onsite training and consulting/mentoring    organization when implementing MHA.
                                                                                         technology and expertise in
                                                                                         your MHA efforts.
to assist clients with understanding and
using the MSP system efficiently in         Partnering for Your Success
regards to MHA.
                                            LPS is working closely with Fannie Mae
Instructional Learning Bytes: LPS           and Freddie Mac to understand the new
offers Instructional Learning Bytes to      MHA guidelines. This enables LPS to
walk you through setting up MHA steps       better assist services in MHA compliance
and templates in the Loss Mitigation        and best practices. LPS consultants are
Workstation.                                continuing to identify creative ways to
                                            further assist servicers.
Printed Training Material: LPS has
developed matrices that identify the        Contact your Account Director today to
department or function impacted by          discuss your MHA challenges, and let
MHA, the change your organization may       LPS consultants create a plan to fit your
need to implement, and the process or       unique needs.
resolution for implementing the change.
LPS also offers MSP Workstation and
Productivity Tools Training guides for
clients who may need to implement a
particular workstation or train new staff
on a workstation.

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