Tag: HAMP; Home Affordable Modification Program; PRA; Principal Reduction Alternative; incentive; compensation; MTMLTV; investor; Treasury

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Treasury Offers Triple Investor Incentives for Principal Reductions

Treasury Offers Triple Investor Incentives for Principal Reductions

By: Eric J. Edwardson, Kerri M. Smith

In January, Treasury announced significantly enhanced payments to encourage investors to consider or expand principal reduction modifications under HAMP. To effectuate this change, Treasury issued Supplemental Directive 12-01 on February 16, 2012, tripling the investor incentives that can be earned for permanent modifications under HAMP’s Principal Reduction Alternative Program, known as PRA, for loans with trial period plan effective dates on or after March 1, 2012. Few of the existing HAMP incentives have enjoyed the market success desired, and only time will tell whether this initiative is more fully embraced. Read More

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