October 9, 2009
Mortgagee Letter 2009-39
TO: ALL APPROVED MORTGAGEES
ATTENTION: Single Family Servicing Managers
SUBJECT: Updated Claim Filing and Delinquency/Default Reporting Requirements
For FHA’s Making Home Affordable Modification Program (FHA-HAMP)
The purpose of this Mortgagee Letter is to provide updated claim filing and delinquency/default reporting requirements for the FHA Home Affordable Modification Program (FHA-HAMP). FHA –
HAMP was announced in Mortgage Letter 2009-23, issued on July 30, 2009.
Implementation of FHA - HAMP required system enhancements to both the Department’s
Claim System and its Single Family Default Monitoring System (SFDMS). As with the standard FHA Loss Mitigation options, FHA will include FHA-HAMP Loss Mitigation options in its Tier Ranking evaluation of Loss Mitigation.
Single Family Default Monitoring System (SFDMS) Enhancements:
Both the FHA Connection and HUD’s EDI TS 264 application are now ready to accept two
updated SFDMS status codes that mortgagees shall use to report HAMP related loss mitigation actions. Status Codes 39 and 41 are now available for the industry to begin SFDMS reporting on FHA-HAMP related loss mitigation initiatives. The specific reporting requirements are outlined in the following section. FHA recognizes that some industry participants may require additional time to complete the required system changes. Therefore, mortgagees may begin using the updated SFDMS status codes immediately, but mortgagees must begin reporting the updated status codes beginning with the January 2010 reporting cycle. That report is due to HUD no later than February 5, 2010, which is the fifth business day of February 2010.
Updated Single Family Default Monitoring System (SFDMS) Instructions
Status Codes 39 and 41 are now available for the industry to begin reporting on FHA - HAMP related loss mitigation initiatives as follows.
; Code 39- FHA-HAMP Trial Modification Plan - Prior to the January 2010 reporting cycle,
mortgagees that use the FHA Connection for SFDMS reporting or that have the system
capability, will report mortgagors that have been approved for an FHA – HAMP trial
payment plan as SFDMS Status Code 39. For a limited time, (only through the December
2009 reporting cycle), those mortgagees who are not using the FHA Connection and their
systems are not yet ready to support the updated status codes may report the trial FHA-
HAMP repayment plan as Status Code 12 – Repayment Plan.
No later than the January 2010 reporting cycle, all mortgagees must report mortgagors
approved to begin the FHA-HAMP trial payment plan as SFDMS Status Code 39.
; Code 41 – FHA-HAMP Modification and Partial Claim Started - Prior to the January
2010 reporting cycle, mortgagees that use the FHA Connection for SFDMS reporting or that
have the system capability, will report mortgagors that have successfully completed the FHA
– HAMP trial payment plan and will begin the process to complete the FHA-HAMP
Modification and Partial Claim as SFDMS Status Code 41.
Also prior to the January 2010 reporting cycle, those mortgagees who are not using the FHA
Connection and their systems are not yet ready to submit the updated status codes will report
the completion of the trial FHA-HAMP repayment plan and the beginning of both the FHA-
HAMP modification and Partial Claim as Status Codes 10 and 28 (Partial Claim Started and
No later than the January 2010 reporting cycle, all mortgagees must report mortgagors that
have successfully completed the FHA – HAMP trial payment plan and will begin the process
to complete the FHA-HAMP Modification and Partial Claim as SFDMS Status Code 41.
Reinstatement of any of the above examples shall be reported as SFDMS Status Code 98- Reinstated.
Appendix 1 to this Mortgagee Letter is an update to Appendix 1 of Mortgagee Letter 06-15. While there are no changes to Appendix 2 of Mortgagee Letter 06-15, it is reprinted for industry convenience.
Claim System Enhancements for FHA-HAMP:
HUD’s Claim System enhancements are also now available. The drop-down menu on the FHA Connection screen for Loss Mitigation Claim Input will include additional claim type options named ‘FHA HAMP-Loan Modification’ and ‘FHA HAMP-Partial Claim.’ These new selections will
identify Loan Modifications and Partial Claims being filed as part of the FHA-HAMP initiative apart from a standard Partial Claim and a standard Loan Modification. Mortgagees shall select the appropriate claim type when filing for the FHA-HAMP incentives. Appendix 3 revises and supersedes the Claim instructions included as Attachment B to Mortgagee Letter 2001-02, and adds specific instructions for filing both the FHA-HAMP-Partial Claim and the FHA-HAMP-Loan Modification. This means that Mortgagees will actually need to file two separate claims, FHA-HAMP Partial Claim and FHA-HAMP-Loan Modification to receive the incentive payments that are provided by FHA upon successful completion of the HAMP loss mitigation initiative.
Loan modifications and partial claims being filed as part of the FHA-HAMP initiative must be
submitted only through FHA Connection to ensure that they are processed as a FHA-HAMP related Loss Mitigation option. Any FHA-HAMP related claim that is submitted using paper Form HUD-27011, Single-Family Application for Insurance Benefits cannot be correctly processed or paid.
Any questions regarding this Mortgagee Letter may be directed to HUD’s National Servicing Center (NSC) at 888-297-8685 or firstname.lastname@example.org. Persons with hearing or speech
impairments may reach this number via TDD/TTY by calling 1-877-TDD-2HUD (1-877-833-2483).
David H. Stevens
Assistant Secretary for Housing-
Federal Housing Commissioner
Appendix 1 - Delinquency/Default Status Codes
Appendix 2 - Delinquency/Default Reason Codes
Appendix 3 - Claim Filing Assistance for Loss Mitigation Claims
Paperwork Reduction Act The information collection requirements contained in this document have been approved by the Office of Management and Budget (OMB) under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) and assigned OMB control numbers 2502-0060, 2502 and 0429.. Additionally, the Department has submitted an expansion package to OMB for 2502-04249, where approval is pending. In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection displays a currently valid OMB Control Number.