Making Home Affordable Program Version 5.2 As of December 21, 2017 TABLE OF CONTENTS FOREWORD ................................................................................................................... 1 OVERVIEW ..................................................................................................................... 2 CHAPTER I MAKING HOME AFFORDABLE PROGRAM ........................................... 9 1 SERVICER PARTICIPATION IN MHA ....................................................................... 10 1.1 Servicer Participation Agreement......................................................................................... 10 1.1.1 GSE Authorization of GSE SPA Services ...................................................................... 10 1.2 Servicer Safe Harbor ............................................................................................................ 11 1.3 Investor Solicitation .............................................................................................................. 12 1.4 Transfers of Servicing .......................................................................................................... 12 1.4.1 Transfer of Eligible Loans .............................................................................................. 12 1.4.1.1 HAMP Eligible Loans ............................................................................................... 13 1.4.1.2 2MP Eligible Loans .................................................................................................. 13 1.4.1.3 Treasury FHA-HAMP and RD-HAMP Eligible Loans .............................................. 14 1.4.1.4 HAFA Eligible Loans ................................................................................................ 14 1.4.2 Relationship Manager .................................................................................................... 14 1.4.3 Obligations of Transferor Servicers ............................................................................... 14 1.4.4 Obligations of Transferee Servicers ............................................................................... 15 1.4.5 Involuntary Transfers of Servicing ................................................................................. 15 1.4.5.1 Borrower Notification ............................................................................................... 16 1.4.5.2 Impact on Incentives ................................................................................................ 16 1.5 Program Participation Caps ................................................................................................. 16 1.6 Compliance with Applicable Laws ........................................................................................ 21 1.7 Dodd-Frank Certification Requirement ................................................................................ 22 2 COMPLIANCE ........................................................................................................... 25 2.1 Compliance Assessments .................................................................................................... 25 2.2 Documentation ..................................................................................................................... 25 2.2.1 Documentation Requirements for PRA .......................................................................... 29 2.2.2 Documentation Requirements for UP ............................................................................ 30 2.2.3 Documentation Requirements for HAFA ....................................................................... 31 2.2.4 Documentation Requirements for 2MP .......................................................................... 32 2.2.5 Documentation Requirements for HHF .......................................................................... 32 2.3 Communication of Findings and Results ............................................................................. 33 2.4 Treasury FHA-HAMP and RD-HAMP Compliance .............................................................. 33 2.5 FHA2LP Compliance ............................................................................................................ 34 2.6 Annual Certification .............................................................................................................. 35 2.6.1 Initial Certification ........................................................................................................... 36 2.6.2 Subsequent Certifications .............................................................................................. 37 2.6.3 Subsequent Events ........................................................................................................ 38 2.6.4 Scope of the Certification ............................................................................................... 38 2.6.4.1 Scope of the Internal Controls Program .................................................................. 38 2.6.4.2 Internal Controls Documentation ............................................................................. 39 2.6.4.3 Quarterly Reviews ................................................................................................... 39 2.6.5 Reporting Noncompliance .............................................................................................. 39 2.6.6 Cover Letter to the Certification ..................................................................................... 40 2.6.7 Termination of Obligation to Provide Certifications ........................................................ 40 2.7 Internal Quality Assurance ................................................................................................... 40 2.7.1 Establishment of a Quality Assurance Function ............................................................ 40 MHA Handbook v5. 2 i 2.7.2 Scope of Quality Assurance Reviews ............................................................................ 41 2.7.3 Quality Assurance Review: Methodology, Timing and Reporting ................................. 42 2.7.4 Relationship Manager Assessment ............................................................................... 43 2.8 Dodd-Frank Certification, Borrower Identity and Owner Occupancy Compliance ............... 44 2.8.1 Borrower Eligibility & Compliance Portal ....................................................................... 45 2.8.2 Loan Selection ............................................................................................................... 45 2.8.3 Servicer Documentation ................................................................................................. 46 2.8.4 Hold on Program Participation for Trial Period Plans or Pending HAFA Transactions . 46 2.8.5 Vendor Review and Alert Notification ............................................................................ 46 2.8.6 Alert Clearance Process ................................................................................................ 47 2.8.6.1 Servicer Responsibility for Assessing Information .................................................. 48 2.8.7 Reporting Clearance Status ........................................................................................... 48 2.8.7.1 Identity/Occupancy Verification Alert Status ........................................................... 48 2.8.7.2 Dodd-Frank Certification Compliance Alert Status .................................................. 49 2.8.8 Not Cleared Borrower Notices ....................................................................................... 49 2.8.9 Treasury System Reporting and Incentives ................................................................... 51 2.8.10 Interaction with Other EESA Programs ....................................................................... 51 2.8.10.1 Borrowers In Multiple MHA Programs ................................................................... 51 2.8.10.2 Borrowers In MHA and HHF Programs ................................................................. 51 2.9 Compliance for GSE Loans under a GSE Amended SPA ................................................... 52 3 ESCALATION OF BORROWER INQUIRIES ............................................................. 52 3.1 Treasury’s Borrower Support Centers ................................................................................. 52 3.2 Servicer Escalated Case Management ................................................................................ 53 3.2.1 Staffing Requirements ................................................................................................... 53 3.2.2 Accessibility .................................................................................................................... 54 3.2.3 Single Point of Contact .................................................................................................. 54 3.3 Escalation Resolution Process ............................................................................................. 54 3.3.1 Timing ............................................................................................................................ 54 3.3.2 Authorization .................................................................................................................. 54 3.3.3 Case Resolution ............................................................................................................