About Government Refinance and Home Purchase Programs

Information and Updates on Government Mortgage Programs
Filed under HARP Program Loans or The Obama Refinance Program

The version of the Home Affordable Refinance Program directed toward second mortgages is to be implemented at the start of 2011. We get this from a recent HousingWire report on the subject:

Fannie Mae, which administers the Home Affordable Modification Program for the Treasury Department, released guidance for servicers participating in the Second Lien Modification Program (2MP).

Fannie requires servicers to implement 2MP by Jan. 1, 2011. Fannie released the guidance Tuesday in a letter to servicers. All Fannie servicers are required to join the program, and the top-four banks have committed, too.

Under 2MP, only second liens originated on or before Jan. 1, 2009 will be eligible for a modification if its corresponding first lien has been modified under the HAMP. Through August, more than 468,000 distressed loans have been given a permanent modification.

The second lien can be either current or delinquent, but it must hold an unpaid principal balance of more than $5,000.

The modification of the second lien will not become effective until the first-lien is modified through HAMP and the borrower has made all required 2MP trial period payments.

Servicers participating in the program must offer a 2MP trial period within 120 calendar days after receiving the first and second-lien matching information from LPS.

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