1. Temporary assistance for unemployed homeowners while they search for re-employment
Mortgage payments reduced to affordable level for a minimum of three months, and up to 6 months for some borrowers, while eligible homeowner looks for new job
2. Requirement to consider alternative principal write-down approach and increased principal write-down incentives
All servicers required to consider alternative modification approach that emphasizes principal write-down with incentives based on the dollar value of the principal reduced
The principal reduction and the incentives will be earned by the borrower and investor based on a pay-for-success structure
3. Improvements to reach more borrowers with HAMP modifications
Improvements to borrower solicitation requirements including clear performance timeframes for both servicers and borrowers and a prohibition against initiation of a new foreclosure referral when a borrower is cooperating with the servicer to obtain a modification
Borrowers in active bankruptcy must be considered for HAMP upon request Increased incentives for servicers to provide permanent HAMP modifications Expansion of HAMP to include homeowners with FHA loans
4. Helping homeowners move to more affordable housing
Relocation assistance payments to homeowners receiving foreclosure alternatives doubled
Increased incentives to servicers and lenders, including increased incentives for extinguishment of subordinate liens, to encourage more short sales and other alternatives to foreclosure
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