FHA-HAMP Standalone Loan Modification
The Mortgagee may offer an FHA Home Affordable Modification Program (FHA-HAMP) Standalone Loan Modification if:
- the Mortgagee can achieve an affordable Mortgage Payment at or below the targeted payment without the use of an FHA-HAMP Partial Claim; and
- the Borrower meets all requirements of the FHA-HAMP Option.
If Partial Claim funds are exhausted, the Mortgagee may offer an FHA-HAMP Standalone Loan Modification up to a final Mortgage Payment not exceeding 40 percent of gross monthly income, provided that all other program requirements have been met.
FHA-HAMP Standalone Partial Claim
The Mortgagee may offer an FHA-HAMP Standalone Partial Claim as an appropriate Loss Mitigation Option if the following criteria are met:
- The Borrower’s current interest rate is at or below the Market Rate.
- The Borrower’s current Mortgage Payment with re-analyzed escrow is at or below the targeted monthly payment.
- A mortgage payment at or below the targeted monthly payment cannot be achieved by re-amortizing the mortgage/outstanding debt for 360 months at the Market Rate.
- FHA-HAMP Partial Claim will not exceed the 30 percent maximum statutory limit for all Partial Claims combined.
- The Borrower meets all requirements of the FHA-HAMP Option.
- Three or more full monthly payments are due and unpaid (i.e., 61 days or more past due) when the Partial Claim Promissory Note is executed.
No portion of the Partial Claim may be used to bring the modified Principal, Interest, Tax and Insurance (PITI) monthly payment below the target payment.
The maximum cumulative value of all Partial Claims paid with respect to a Mortgage must not exceed 30 percent of the Mortgage’s unpaid principal balance. This maximum cumulative value must be established as of the date of Default at the time of payment of the initial Partial Claim on such Mortgage, and will remain constant for the life of the Mortgage.
FHA-HAMP Combination Loan Modification and Partial Claim
The Mortgagee may offer an FHA-HAMP Combination Loan Modification and Partial Claim when establishing an affordable monthly payment that requires a Partial Claim in an amount needed to cover:
- arrearages
- legal fees and foreclosure costs
- principal deferment
If the amount of arrearages, legal fees and foreclosure costs, and principal deferment exceed the statutory maximum for the Partial Claim, the Mortgagee may still utilize this combination of an FHA-HAMP Combination Loan Modification and Partial Claim for an eligible Borrower, so long as the modified payment is 40 percent or less of the Borrower’s gross monthly income.
Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to answers@hud.gov. Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339.
For policy information see: Handbook 4000.1 III.A.2.k.v(D)(1)-(3) and III.A.2.j.iii available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh