making home affordable reporting - hmpadmin.com home affordable reporting . december 2012 ... lpi...

December 2012 | Making Home Affordable

HAMP for First Liens

Making Home Affordable Reporting

2 December 2012 | Making Home Affordable

Course Agenda – Part 1: HAMP Reporting This course will provide insight into:

• Correcting trial and permanent modification setup records

• Cancelling trial and permanent modifications

• Submission Errors and warnings/response files

• Reading the HAMP Data Dictionary

• External Reporting

• HAMP Reporting Calendar

• HAMP Reporting Tool

• Trial Period Set Up

• Additional Data Requirements (ADR)

• Permanent Modification Loan Set Up

• Official Monthly Reporting (OMR)


Overview

Servicers who are HAMP participants are also required to register with Lender Processing Services, Inc. (LPS) to have the ability to report periodic loan level data.

Types of loan level data reported:

• Trial period setup

• Permanent loan modification setup

• OMR

• ADR


The HAMP Reporting Tool

The HAMP Reporting Tool enables servicers to submit all program required data to the Program Administrator.


TPP Setup

To access the HAMP Reporting Tool: 1. Log in to HMPadmin.com 2. Click the HAMP Loan Reporting Tools & Documents link. 3. Select the HAMP Reporting Tool. 4. Enter the login name and password assigned to you after registering for the tool.

TPP Loan

Set up ADR

Permanent

Modification

Loan Setup

Official

Monthly

Reporting

(OMR)


How to Begin - TPP Setup

To report data at the start of a trial period:

1. Select the Trial Setup option from the HAMP drop-down menu.

2. Complete all required fields.

3. Click on Add Activity to submit the data.

Required data elements and element definitions are set forth in the HAMP

Data Dictionary located at HMPadmin.com.


TPP Setup Details

TPP starts on the TPP Effective Date, which must be the first of the month.

If the TPP Notice is transmitted to the borrower on or before the 15th of the month, then the servicer should use the first day of the next month as the TPP Effective Date.

If the TPP Notice is transmitted to the borrower after the 15th of the month, the servicer should use the first day of the month after next month as the TPP Effective Date. The first day of the next month may be the TPP Effective Date with the borrower’s consent.

Effective dates are determined by the servicer based on the rules above and indicated in the TPP notice.


TPP Setup Record

Required fields are outlined in RED.

Additional information about the data to be provided can be located within the screen by rolling the cursor over the data field.


Permanent Modification Loan Setup

To report loan setup data for a permanent HAMP modification:

1. Select the “Official Modification” option from the HAMP drop-down menu.

2. Complete all the required fields.


Trial Period

Setup ADR

Permanent

Modification

Loan Setup

Official

Monthly

Reporting

(OMR)


Permanent Modification Loan Setup Details

• One-time loan setup record is required to establish the permanent modification.

• Official loan setup records are due no later than the fourth business day of the month in which the modification is effective.

Example: If the Modification Effective Date is February 1st, servicers have until February 4th to transmit the permanent modification loan setup record.

(Example assumes that February 4th is the fourth business day of the month.)


Permanent Modification Loan Setup Record

The Save and resume later and Load Saved Data links allow users

to save and retrieve previously entered data for Trial, Official, and Government Monitoring Data reporting screens.


Official Monthly Reporting (OMR)

To report loan payments after the permanent modification:

1. Select the Loan Activity option from the HAMP drop-down menu.



Trial Period

Setup ADR

Permanent

Modification

Loan Setup

Official

Monthly

Reporting

(OMR)


OMR Details

• Reporting begins the first month AFTER the month the permanent modification becomes effective.

• Once a permanent modification has been set up, servicers must report an OMR each month for any permanent modification with a Modification Effective Date at least one month prior.

Example: Modification Effective Date is February 1st; OMR reporting will begin in March for the February activity.

Please refer to the Operational Reporting Calendar on HMPadmin.com for

reporting dates each month.


OMR Details

Servicers have from BD1 to BD8 to report OMRs. For example, March borrower activity should be reported within the first eight business days of April.

The Program Administrator will work with servicers during each reporting cycle to resolve any edits that arise in the OMR reporting process.

Receipt of the OMR directly impacts borrower, servicer and investor incentives, where

applicable. Failure to report OMRs will affect incentive payments.


OMR Record

• OMRs reflect borrower activity for previous month.

• OMRs are due even when a payment was not received.

• If multiple payments are being reported, combine payments into one OMR.


Examples (OMR)

SCENARIO ONE

March Borrower Activity

Borrower makes one payment

Principal $200

Interest $800

Ending UPB $299,800

Last Paid Installment (LPI) 3/1/2011

This OMR reflects borrower activity for the previous month.


Examples cont’d (OMR)

SCENARIO TWO


Borrower makes more than one payment – both March and April (pre-payment)

Principal $410

Interest $790

Ending UPB $299,590

LPI 4/1/2011


If multiple payments are being reported, combine payments into one OMR.


Examples cont’d (OMR)

SCENARIO THREE


Borrower makes no payment for the month of March

Principal $0

Interest $0

Ending UPB $300,000

LPI 2/1/2011


OMRs are due even when a payment has not been received.


ADR Reporting

Trial Period

Setup ADR

Permanent

Modification

Loan Setup

Official

Monthly

Reporting

(OMR)


ADR Reporting

To report ADR:

1. Select the ADR option.




ADR Reporting

Servicers must report data elements specified in Schedule I titled “Identifying Information,” Schedule II titled “Government Monitoring Data,” and Schedule III titled “NPV Model Inputs” for:

• Each loan that entered a permanent modification on or after December 1, 2009;

• Each loan that entered into a trial period with a Trial Period Plan effective date on or after December 1, 2009;

• Each loan evaluated for HAMP on or after December 1, 2009.

Each time data elements are reported in the “Government Monitoring Data”, “NPV

Model Inputs”, or “Reason Code” sections, servicers must resubmit the applicable current data in the “Identifying Information” section.


ADR Reporting

Servicers must also report data elements specified in Schedule IV titled “Reason Codes” for each mortgage loan evaluated for HAMP on or after December 1, 2009 that:

• Did not enter a HAMP trial;

• Fell out of a HAMP trial or withdraws from a trial period; or

• Completed a HAMP trial, but did not result in a permanent modification.

Servicers must report the data elements specified in Schedules I – IV on or before the fourth business day of the month following the month in which such data elements were collected.

Data elements and definitions are set forth in the HAMP Supplemental Directive

09-06 Data Dictionary located on HMPadmin.com


Reading the HAMP Data Dictionary

For a complete list of data points, definitions and rules,

access the HAMP Data Dictionary at:

HMPadmin.com


Response Files/Submission Errors and Warnings

• To ensure data quality and eligibility, business edits and schema validation checks have been built into the system.

• Two response files are received when submitting a loan setup file and/or payment activity file.

LPS Response Message

HAMP Reporting System Response Message

• Edits must be reviewed, applicable data must be corrected and the transaction must be resubmitted.

• All errors and warnings in response files should be reviewed for anomalies in the data reported.

Warnings must be reviewed and corrected when possible.

However, these will not prohibit the transaction from processing.


Correcting Trial and Permanent Modification Setup Records

Corrections can be made to both the trial period plan and the permanent modification loan setup record.

• For trial period plans: Resubmit complete loan setup record using Submission Status = 1 – Trial.

• For permanent modifications: Resubmit complete loan setup record using Submission Status = 6 – Official Correction.

• Corrections can be made on trial loan setup records at any time during the month. • Corrections on permanent modification loan setup records can only be made during

the first six business days of the month.


Cancelling Trial Period Plans and Permanent Modifications

Both trial period plans and permanent modifications can be cancelled by the servicer.

• For trial period plans: Submit the appropriate Trial Fallout Reason Code under the ADR

• For permanent modification: Submit a loan setup record using Submission Status = 7 – Official Cancellation

• Cancelling a permanent modification reverts the loan state back to “Trial Active” and will result in the draft back of all incentives paid to date.

• “Trial Cancellations” can be reported throughout the month. • “Official Cancellations” can only be reported during the first six business days of the

reporting cycle.


External Report Details

HAMP Master Servicer Loan Reconciliation File

• Provides comprehensive trial loan setup, permanent modification loan setup and monthly accruals.

• Available four business days after the end of the cycle and is available for 180 days.

First Lien Cash Payment Summary Report

• Provides loan level compensation payment data for the current reporting cycle.

• Indicates the associated payor: Treasury, Fannie Mae or Freddie Mac.

• Available the day before the incentive payments are deposited and are available for 180 days.

To view and download the two reports mentioned above:

1. Log in to the HAMP Reporting Tool.

2. Select the Reports tab.

3. Click on the desired report link to display report page.

4. Click the desired “Download File” link to view or save the associated file.


External Report Details (cont’d)

First Lien Missing OMRs

• Provides a list of loans for which an OMR has not been received or successfully processed.

• Available on the first business day through the business day prior to the monthly close of each reporting cycle. (BD1 – BD8)

First Lien Disqualified Loans

• Provides a list of official first-lien loans that are disqualified during the current reporting cycle.

• Available on the second business day through the business day prior to the monthly close of each reporting cycle. (BD1 – BD8)

To view and download the two reports mentioned above:

1. Log in to the HAMP Reporting Tool.

2. Select the Reports tab.

3. Click on the desired report link to display report page.

4. Click the desired “Download File” link to view or save the associated file.


2012 Operational Reporting Calendar


LPS – HAMP Reporting Tool

1-866-939-4469; Select Option 1, the Option 5

HAMP Solution Center

[email protected]

Resources

• MHA Programs

• Learning Center

• Resources

• News

• Contact Us

www.HMPadmin.com

Additional Resources