MRG Offers Documentation Compliant with Federal Modification Program

Dallas-based ""MRG Document Technologies"":http://www.mrgdocs.com (MRG) now offers mortgage servicers loan modification document packages that are compliant with the administration’s Home Affordable Modification Program (HAMP).
HAMP is effective March 4, 2009, to December 31, 2012, for mortgages originated on or before Jan. 1, 2009. It provides a definitive modification process for servicers to follow to lower delinquent and at-risk borrowers’ monthly mortgage payments to between 31 and 38 percent of their gross monthly income.
According to Laura LaRaia, an attorney and director of customer service at MRG, as expected, the HAMP modification agreements are lengthy and require much more documentation than traditional workouts.
The program mandates a 90-day trial period before the modification becomes permanent. Servicers must provide borrowers with one document that outlines the terms of the trial period and another that outlines the terms of the modification itself.
Borrowers must make three monthly payments at the modified payment amount, during which time servicers must treat the loan as if it were in forbearance. The form for the HAMP trial period is a FNMA/FHLMC [Fannie Mae/Freddie Mac] Uniform Instrument (Form 3156). Then, at the end of the trial period, the borrower must complete step two of HAMP, the Home Affordable Modification Agreement (FNMA/FHLMC Form 3157).
MRG added that its loan modification packages will be continually updated to meet the latest program and regulatory changes.
LaRaia explained, ""It has been our experience that the program has evolved over the last few months, and lenders need to continuously update their documents to maintain compliance. MRG’s staff of attorneys not only monitor the various regulatory and investor Web sites and update packages as needed, they also interpret how additional regulations affect the modification process now and going forward for our lending and servicing clients.""
Since 1980, ""MRG Document Technologies"":http://www.mrgdocs.com has provided loan modification and closing documents, electronic disclosures, fraud prevention, and imaging integration to approximately 350 mortgage lenders, banks, and credit unions throughout the United States.