Alert May 15, 2012

The Treasury Enhances HAMP to Provide Increased Protection for Servicemembers

In conjunction with the CFPB, the Department of Treasury announced enhancements to the Home Affordable Modification Program for military servicemembers who have received orders for a permanent change of station. The enhancements allow military homeowners who are permanently displaced by a job-related move to still qualify as owner-occupants and be eligible for a HAMP mortgage modification. A borrower qualifies for a HAMP mortgage modification if: (1) he/she is displaced due to an out-of-area job transfer and was occupying the home as a principal residence immediately prior to the displacement; (2) he/she intends to return home at some point in the future; and (3) he/she does not own any other single-family real estate.  Military homeowners who do not meet the third criterion may still qualify for a HAMP modification under enhancements for rental properties announced by the Department of Treasury in January 2012.  The new enhancements are effective June 1, 2012. Click here for the related press release from the Department of Treasury, here for the related press release from the CFPB, and here for the January 2012 press release on rental properties.