DocMagic, Inc. now offers loan modification programs that are supported by Fannie Mae's Home Affordable Modification Program (HAMP).  The following four (4) loan programs have been added under DSI's Generic Loan Programs:

HAMP1A	FANNIE MAE HAMP MODIFICATION, STEP ONE, INCOME STATED
HAMP1B	FANNIE MAE HAMP MODIFICATION, STEP ONE, INCOME VERIFIED, PART ONE
HAMP1C	FANNIE MAE HAMP MODIFICATION, STEP ONE, INCOME VERIFIED, PART TWO
HAMP2	FANNIE MAE HAMP MODIFICATION, STEP TWO

Fannie Mae's HAMP consists of two steps - the Firm Solicitation Offer consisting of the Trial Period Plan and the Permanent Modification Agreement. Thesme are referred to as Step One (Trial Period Plan) and Step Two (Permanent Modification).

Step One - A servicer can complete Step One in one of two ways by using either the Income Stated method or the Income Verified method.

Income Stated.  If using the Income Stated method, select Loan Program Code HAMP1A.  This package consists of all of the following documents for the Trial Period Plan:

• FRAUD NOTICE TO BORROWERS (FRAUD.HMP)
• MODIFICATION TRIAL PERIOD COVER LETTER - INCOME STATED (CL1S.HMP)
• HAMP TRIAL PERIOD PLAN (US3156.HMP) - Impounds
• HAMP TRIAL PERIOD PLAN (US31562.HMP) - If no impounds
• HARDSHIP AFFIDAVIT (HA.HMP)
• 4506T - REQUEST FOR TRANSCRIPT OF TAX RETURN (4506T.MSC)
• MODIFICATION COUNSELING LETTER (CL.HMP)

Income Verified.  If using the Income Verified method, select Loan Program Code HAMP1B to generate the first package to be delivered to the borrower and then Loan Program Code HAMP1C to generate the second package to be delivered to the borrower.  This method is completed in two parts described as follows:

Part One: When selecting Loan Program Code HAMP1B, the following documents are returned in the package and should be delivered to the borrower in the first mailing:

• FRAUD NOTICE TO BORROWERS (FRAUD.HMP)
• MODIFICATION DOCUMENT REQUEST LETTER (DR.HMP)
• HARDSHIP AFFIDAVIT (HA.HMP)
• 4506T - REQUEST FOR TRANSCRIPT OF TAX RETURN (4506T.MSC)

Part Two: When selecting Loan Program Code HAMP1C, the following documents are returned in the package and should be delivered to the borrower in the second mailing:

• FRAUD NOTICE TO BORROWERS ( FRAUD.HMP )
• MODIFICATION TRIAL PERIOD COVER LETTER - INCOME VERIFIED (CL1V.HMP)
• HAMP TRIAL PERIOD PLAN (US3156.HMP) - Impounds
• HAMP TRIAL PERIOD PLAN (US31562.HMP) - If no impounds
• MODIFICATION COUNSELING LETTER CL.HMP

Step Two - One must select Loan Program Code HAMP2 to obtain all of the following documents for the Permanent Modification:

• MODIFICATION AGREEMENT COVER L ETTER - STEP TWO (CL2.HMP)
• HOME AFFORDABLE MODIFICATION AGREEMENT (US3157.LMA)

Please note that DocMagic does not support the situation in which original loan documents did not include standard Fannie Mae/Freddie Mac Uniform Instrument provisions for escrow items.  Therefore, DocMagic will not provide a modified version of the Home Affordable Loan Modification Agreement (Form 3157) that incorporates Item 5 of the Instructions for Form 3157.

Things to Keep in Mind:

To ensure that the loan modification data populates correctly onto the above-referenced loan modification forms:

1. The Loan Purpose selected must be "Loan Modification." Selecting "Loan Modification" as the loan purpose will then enable the new Loan Modification Tab in DocMagic. Please note that this Tab can accommodate the Federal Deposit Insurance Corporation's "Mod in a Box" Program as well. See below screen shot:

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2. The HAMP is a Fixed Step Rate loan program. That is, it starts with an Initial Interest Rate and increases to a Maximum Modification Rate ("Max Mod Rate") over a period of time. The Initial Rate is fixed for 60 months and then increases 1.000% per year until the Max Mod Rate is reached.

3. When "Loan Modification" is selected as the Loan Purpose, the new Max Mod Rate field will be exposed to the right of the Interest Rate field. This new Max Mod Rate field is the ceiling interest rate for the modified loan. The Max Mod Rate must be manually entered by the DocMagic user.   See below screen shot for Max Mod Rate field.

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4. To properly process the loan modification worksheet, the Package Type selected within DocMagic should be set to Loan Modification.

If you have any questions concerning DocMagic's new loan modification programs, please contact Customer Service, at (800) 649-1362.