The Mortgage Bankers Association (MBA) revealed a proposed successor program for the Home Affordable Modification Program (HAMP) on Friday that would work to reduce borrower payments and minimize documentation requirements for lenders.
The program, titled One Mod: Principles for Post-HAMP Loan Modifications, seeks to offer clear and consistent solutions based on the experiences of HAMP lenders.
“MBA’s task force recognizes that the industry, borrowers and investors need a successor to HAMP that is consistent and can be widely scaled,” Pete Mills, senior vice president of residential policy and member services at the Mortgage Bankers Association said. “Application of the Task Force’s principles and the ‘One Modification’ or ‘One Mod’, will go a long way towards offering deep payment relief for struggling homeowners and a positive economic outcome for investors. We look forward to continued discussions with government agencies, the GSEs and other stakeholders about these principles and the proposal.”
One Mod was developed by a team of representatives from 20 MBA member companies who aimed to create a more efficient process for home loan modification.
“As an industry we have a shared responsibility to offer clear and consistent solutions to homeowners who are struggling,” Peter Muriungi, head of mortgage banking servicing at JPMorgan Chase said. “This proposal is the product of strong industry collaboration with the common goal of providing a simpler customer experience and meaningful payment relief for families in need.”