In This Section
MBA calls on regulators to support a cohesive industry framework for loss mitigation options after HAMP.
Overview: During the financial crisis, the Treasury Department established a program to standardize modification options for borrowers in default. The Home Affordable Modification Program (HAMP) helped millions of homeowners, and mortgage servicers adjusted to offering the loss mitigation products. HAMP winded down in 2016, but servicers now look to offer HAMP-like products to borrowers facing the possibility of foreclosure.
NEW WHITE PAPER: Improving Default Mortgage Servicing Processes: Opportunities for Alignment and Standardization
Following the foreclosure crisis of 2008, federal foreclosure prevention programs and consumer protection laws were put into place that provided more standardization and alignment of loss mitigation and foreclosure processes across the industry. However, key differences still remain in default servicing requirements, resulting in different servicing protocols depending on who owns, insures, or guarantees the mortgage. This white paper identifies areas where greater alignment or standardization could benefit borrowers or communities and/or improve servicing efficiencies while reducing costs and mitigating losses for federal guarantors and insurers.