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Administration Considering Extension of HAMP Servicing Rules

HOUSINGWIRE, Ben Lane

Despite the fact that the federal government’s Making Home Affordable program is currently set to expire at the end of 2016, one Obama administration official says that the mortgage servicing rules that were adopted as part of the Home Affordable Modification Program may be sticking around — permanently.

In a speech given Friday at the Consumer Federation of America's Annual Financial Services Conference, Antonio Weiss, counselor to the Secretary of the Treasury, said that the HAMP “set new market standards for how modifications and loss mitigation are done across the industry,” and said that the administration is exploring the continuation of the HAMP servicing rules.

“Recently, Treasury held several conversations with stakeholders to find common ground to continue the standardization and transparency that HAMP has brought to mortgage servicing,” Weiss said, according to his prepared remarks.

“Chief among these reforms are-loss mitigation solutions that are designed to make monthly payments manageable,” Weiss continued. “By cementing these changes in the servicing industry, HAMP’s legacy promises to help ease the lives of future troubled borrowers for years to come.”

Weiss said that the administration plans to “make sure that HAMP’s servicing practices live on as a lasting legacy” even after the program expires.

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