Making Home Affordable Program Version 5.3 As of February 5, 2019 TABLE OF CONTENTS FOREWORD .................................................................................................................. 1 OVERVIEW .................................................................................................................... 3 CHAPTER I MAKING HOME AFFORDABLE PROGRAM ......................................... 11 1 SERVICER PARTICIPATION IN MHA ...................................................................... 12 1.1 Servicer Participation Agreement......................................................................................... 12 1.1.1 GSE Authorization of GSE SPA Services ...................................................................... 12 1.2 Servicer Safe Harbor ............................................................................................................ 13 1.3 Investor Solicitation .............................................................................................................. 14 1.4 Transfers of Servicing .......................................................................................................... 14 1.4.1 Transfer of Eligible Loans .............................................................................................. 14 1.4.1.1 HAMP Eligible Loans .............................................................................................. 15 1.4.1.2 2MP Eligible Loans ................................................................................................. 15 1.4.1.3 Treasury FHA-HAMP and RD-HAMP Eligible Loans ............................................ 16 1.4.1.4 HAFA Eligible Loans ............................................................................................... 16 1.4.2 Relationship Manager .................................................................................................... 16 1.4.3 Obligations of Transferor Servicers ............................................................................... 17 1.4.4 Obligations of Transferee Servicers ............................................................................... 17 1.4.5 Involuntary Transfers of Servicing ................................................................................. 18 1.4.5.1 Borrower Notification .............................................................................................. 18 1.4.5.2 Impact on Incentives ............................................................................................... 19 1.5 Program Participation Caps ................................................................................................. 19 1.6 Compliance with Applicable Laws ........................................................................................ 23 1.7 Dodd-Frank Certification Requirement ................................................................................ 24 2 COMPLIANCE ........................................................................................................... 27 2.1 Compliance Assessments .................................................................................................... 27 2.2 Documentation ..................................................................................................................... 28 2.2.1 Documentation Requirements for PRA ........................................................................... 32 2.2.2 Documentation Requirements for UP.............................................................................. 32 2.2.3 Documentation Requirements for HAFA ......................................................................... 33 2.2.4 Documentation Requirements for 2MP ........................................................................... 34 2.2.5 Documentation Requirements for HHF .......................................................................... 35 2.3 Communication of Findings and Results ............................................................................. 36 2.4 Treasury FHA-HAMP and RD-HAMP Compliance .............................................................. 36 2.5 FHA2LP Compliance ............................................................................................................ 37 2.6 Annual Certification .............................................................................................................. 38 2.6.1 Initial Certification ........................................................................................................... 38 2.6.2 Subsequent Certifications .............................................................................................. 40 2.6.3 Subsequent Events ........................................................................................................ 41 2.6.4 Scope of the Certification ............................................................................................... 41 2.6.4.1 Scope of the Internal Controls Program ................................................................ 41 2.6.4.2 Internal Controls Documentation ............................................................................ 41 2.6.4.3 Quarterly Reviews .................................................................................................. 41 2.6.5 Reporting Noncompliance .............................................................................................. 42 2.6.6 Cover Letter to the Certification ..................................................................................... 42 2.6.7 Termination of Obligation to Provide Certifications ........................................................ 42 2.7 Internal Quality Assurance ................................................................................................... 43 2.7.1 Establishment of a Quality Assurance Function ............................................................ 43 MHA Handbook v5.3 i 2.7.2 Scope of Quality Assurance Reviews ............................................................................ 43 2.7.3 Quality Assurance Review: Methodology, Timing and Reporting ................................. 45 2.7.4 Relationship Manager Assessment ............................................................................... 46 2.8 Dodd-Frank Certification, Borrower Identity and Owner-Occupancy Compliance ............... 46 2.8.1 Borrower Eligibility & Compliance Portal ....................................................................... 47 2.8.2 Loan Selection ............................................................................................................... 48 2.8.3 Servicer Documentation ................................................................................................. 48 2.8.4 Hold on Program Participation for Trial Period Plans or Pending HAFA Transactions . 49 2.8.5 Vendor Review and Alert Notification ............................................................................ 49 2.8.6 Alert Clearance Process ................................................................................................ 50 2.8.6.1 Servicer Responsibility for Assessing Information ................................................ 51 2.8.7 Reporting Clearance Status ........................................................................................... 51 2.8.7.1 Identity/Occupancy Verification Alert Status .......................................................... 51 2.8.7.2 Dodd-Frank Certification Compliance Alert Status ................................................ 52 2.8.8 Not Cleared Borrower Notices ....................................................................................... 52 2.8.9 Treasury System Reporting and Incentives ................................................................... 53 2.8.10 Interaction with Other EESA Programs ....................................................................... 54 2.8.10.1 Borrowers in Multiple MHA Programs .................................................................. 54 2.8.10.2 Borrowers in MHA and HHF Programs ................................................................ 54 2.9 Compliance for GSE Loans under a GSE Amended SPA ................................................... 55 3 ESCALATION OF BORROWER INQUIRIES............................................................ 55 3.1 Treasury’s Borrower Support Centers ................................................................................. 55 3.2 Servicer Escalated Case Management ................................................................................ 56 3.2.1 Staffing Requirements ................................................................................................... 56 3.2.2 Accessibility .................................................................................................................... 57 3.2.3 Single Point of Contact .................................................................................................. 57 3.3 Escalation Resolution Process ............................................................................................. 57 3.3.1 Timing ............................................................................................................................ 57 3.3.2 Authorization .................................................................................................................. 58 3.3.3 Case Resolution ............................................................................................................