Update 2: Program not on hold- in ‘finalization’; Treasury reports program ‘suspended’; Housing: HAMP – 2MP (Second Lien) Modification Program Guidelines issued…

Update 2: 1/9/10 – See HousingWire: Treasury pushes back, says 2MP program is being ‘ramped up’ and will be rolled out:

.”.I recently gave a hopeful thumb up to Calculated Risk’s evidence that the Treasury Department’s $75 billion Housing Affordable Modification Program (HAMP) had abandoned its ill-advised scheme to guarantee modifications on second-lien mortgages.

HousingWire quotes Treasury spokeswoman Meg Reilly as saying, “That rumor is wrong.”

And in an email to Calculated Risk, Reilly also says that the progress ramp-up to systematization will soon lead to finalizement:

The Second Lien program is moving forward. Treasury has been working to create program infrastructure and technology, including a new platform that matches second liens to first liens modified under HAMP. Because there has not been a systematic method of notification to second lien holders when a first lien on the same property is modified, ramp up has taken some time. We have made enormous progress and continue to move forward with innovative technological development and program implementation and expect to finalize servicer contracts soon….”

Update: 1/7/10: Well, it seems the reason none of us following housing can get the list of approved servicers for Treasury’s 2MP program is because, well there are none. The program is ‘on hold’ (I think it would be better to say ‘never got off the ground’ which is more factually accurate.)

Matthew Padilla, Mortgage Insider:

Economics blog Calculated Risk hears the Obama administration’s plan to help homeowners with their second mortgages has stalled. We already know the plan for first mortgages is only keeping a fraction of delinquent borrowers in their homes.

The blog says housing economist Tom Lawler emailed the Web site for HAMP, as the umbrella program is known, to ask for a list of companies that have signed up for the Second Lien Modification Program. Lawler got this response:

“That program is currently on hold and there is no list of servicers that registered before it was placed on hold.”

A big chunk of the homeowners underwater now got second mortgages during the boom. The ones who have a second from a different lender than the first are the hardest to help. While this email Mr. Lawler got is not an official statement from the Obama administration, it’s not a good sign either.”

What the hell are these guys doing with housing?


8/28/09: Well heaven forfend the journOlists schmoozing the haut ton in MASS would notice, but Treasury/HUD have released an updated program for those who have second liens and need modifications under HAMP.

The Administration has a servicer portal HMPADMIN.com, this is the place to go if you want to see the updates issued to the servicers…we mere homeowners of course have no access to many portions of the site including the NPV (Net Present Value) software, and to my knowledge there is no requirement that servicers give detailed NPV analysis to the homeowner when they approve/deny modifications,  so we have no way to know if the servicers are performing their duties as mandated under HAMP….

For example, in two places on one servicer update it indicates that unemployment IS considered toward Gross Monthly Income as long as the benefit is expected to last 7 9 months…but servicers are telling people they are ineligible in these circumstances (based on anecdotal reports and press coverage which also presents UE as ineligible, these MSM today are really incompetent goofballs)…

They have posted a service update for 2MP which is what they are calling the second lien HAMP program:

The Second Lien Modification Program is a complementary program to the Home Affordable Modification Program designed for first lien mortgages. This Program is expected to reach approximately 1 – 1.5 million responsible homeowners who are struggling to afford their mortgage payments. The Second Lien Modification Program coordinates with HAMP’s first mortgage modification program to lower payments on second mortgages and offer comprehensive affordability solutions for homeowners.

The guidelines of the Second Lien Modification Program are detailed further in the documents listed below.

Servicer DocumentsSupplemental Directive 09-05
Introduction of the Second Lien Modification Program

Additional guidance to servicers for adoption and implementation of the Second Lien Modification Program for non-GSE mortgages.

Download Now

Servicer Participation Agreement

Template of the agreement servicers must sign to participate in HAMP or 2MP for loans that are not owned, securitized or guaranteed by Fannie Mae or Freddie Mac.

Download Now
Last updated: August 13, 2009

About the NPV:

What is the NPV model and what is it used for?

The NPV model determines the NPV outcome (positive or negative) for a given modification. A positive NPV occurs where the discounted value of expected cash flows for the modified loan is higher than the discounted value of expected cash flows for the unmodified loan. The NPV model software tool resides on the servicer Web portal (www.HMPadmin.com), and is available to all participating servicers of both GSE and non-GSE mortgage loans eligible for a Home Affordable Modification….

August 28, 2009. Tags: , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Unemployment Statistics.


  1. CASH For Walkers replied:

    “Cash For Walkers” is the new name for HAFA which will actually help people out of their homes and pay Cash when you Walk away. An extension of the HAMP Program.


  2. cant say replied:

    This is what they won’t make public….



  3. Steve Bush replied:

    Are there any accounts of ANY servicer/lender taking advantage of the second lien program. I cannot find any.


  4. Housing Update: WSJ: Obama Housing Plan spends $42.5 Billion to modify 2 million mortgages?! Huh? « Moderate in the Middle replied:

    […] that NPV model Treasury is using in HAMP and which they WILL NOT MAKE PUBLIC: The report also criticized Treasury for failing to provide enough detailed data about the program, […]


  5. ginaswo replied:

    thank you! do you have a resource linky to RE atty listings we can post for folks? should people just let their fingers do the walking and find a RE attorney or are there clearinghouses set up online doing referrals for GOOD RE attys specializing in mo mods? I ask b/c I see a constant bombardment of tv ads for fly by night types to do ‘consulting’ which IIRC can be anyone….


  6. Mortgage modification replied:

    Thank you for the great post. It is a difficult situation that many homeowners face. For this reason it is advised to have an attorney or consultant by your side who can renegotiate the payment terms with your lender. They have higher success rate than homeowners alone.


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