Is there an Application Process for 2MP Loan Modification?

by Anonymous

I was told by the Executive Response Unit and also the Department that handles the 2MP that I need to give citi time to 'implement' the new October 2010 Guidelines for the 2MP

We will be making our 2nd HAMP modified payment on January 1,2011.
We made 9 trial payments.

Our Loan closed on October 26th.

We do not have the Modification Agreement back and signed by citi, but we are getting real statements in the mail with the new modified payments.

Our 2nd Mortgage is with CitiBANK (Not Citimortgage) but Citibank just tells me to call CitiMortgage regarding this matter.

I aggressively pursued the first modification.

Do I need to do the same for the 2MP?

Thank you.

Mortgage Loan Modification Answer:

Yes, you will have to pursue your 2MP loan modification application aggressively with CitiMortgage or whoever is the servicer of your second mortgage loan.

Many representatives are not familiar with the program so it takes a while to even get connected to the right person who knows about the 2MP program and how it works.

Escalate your application to a manager if you are not getting anywhere with the regular reps. They may know more about the program, or so one would think.

Since your HAMP loan modification has been finalized and is now permanent, you automatically qualify to get a 2MP modification for your second mortgage, so stay on top of Citi until you get approved for it.

Find out more on how the 2MP HAMP loan modification program works.

All the best to you and your family!

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Apr 20, 2011
Structuring Payments under 2MP
by: Anonymous

Once approved for a HAMP modification, wherein the new payment is 31% of gross income, how will a second mortgage lender structure payment under the 2MP program? Since the "target" payment has been reached by the first mortgage holder, will the second mortgage holder have to extinguish? I have read the guidelines, i.e. first rate reduction, then term extension, then partial extinguishment, then full extinguishment, but it seems like the first mortgage holder will always adjust their payments to meet the 31% of gross income target, so how does the second mortgage holder have any options other than extinguishment under 2MP?

Jan 13, 2011
Getting your 2MP
by: Merrill

I've learned this.
The 2MP process is not 'applied for.
Once approved and closed on HAMP, the 2nd lien holder (if that bank is a 2MP participant) is notified by Treasury and 3rd party LPS (loan processing center) that you are eligible for 2MP.
If you're not current on 2nd, there is likely a trial payment period.
You should call 2nd lien holder and have them check the status of your being notified of 2MP.
There is no end to the bank employees and supervisors who still don't appear to know the Treasury Dept. guidelines and rules on this.
Good Luck

Dec 29, 2010
Application Process for 2MP
by: Dean

New guidelines are effective Jan 1, 2011. A second mortgage must be a true second mortgage and not a Home Equity Line of Credit (HEL or HELOC)for 2MP. Assuming this is a second mortgage the NEW guidelines are outlined here:

Beginning in Chapter V p118. In Sec 4.4 It says the Second Lien servicer has no obligation, absent fraud, to verify the financial information submitted to the First Lien servicer -- ie you do not provide the financial information all over again.

Pay particular attention the Sec 5. It outlines the steps (Waterfall provisions) the services must follow in accomplishing the modification.

1)Capitalization of Accrued Interest and certain fees. Late fees etc must be waived.
2) Reduce interest rate to 1% with reset after 5 years
3)Extend the term of the second lien
4) if there was principal forbearance or forgiveness on the HAMP-modified first
lien, a 2MP servicer must forbear or forgive principal on the second lien in the same proportion
5)Partial or full extinguishment of the second mortgage.

This is a simple explanation. You need to read through the options on each item to see what fits your situation depending on the type of second mortgage you have.

I realize there is a lot here to digest, but you have to become knowledgeable or seek professional assistance in order to take ownership of your largest asset.

Hope this is helpful and wishing you the very best!

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