Change Template of

Supplemental Directive 09-09 and Supplemental Directive 09-09 Revised

(Page, Paragraph and Sentence References Apply to Supplemental Directive 09-09 Revised)

Page Paragraph Sentence New Language Deleted Language

1 2 1 replaces in its entirety Supplemental Directive 09-09
and is effective as of April 5, 2010. This
Supplemental Directive
1 3 2 October 3, 2010 December 31, 2009
2 1 1 The effective date of this
Supplemental Directive is April 5,
2010.
2 1 2 this Supplemental Directive HAFA
3 2 1 may not solicit …. for HAFA until the borrower has must evaluate
been evaluated
3 4 Bullet 1 , except that the property can be vacant up to 90 days
prior to the date of the Short Sale Agreement (SSA),
Alternative Request for Approval of Short Sale
(Alternative (RASS) or DIL Agreement if the
borrower provides documentation that the borrower
was required to relocate at least 100 miles from the
property to accept new employment or was
transferred by the current employer and there is no
evidence indicating that the borrower has purchased
a one- to four-unit property 90 days prior to the date
of the SSA, Alternative RASS or DIL Agreement

4 1 1 The date and outcome of the HAFA consideration

Sentence must be documented in the servicer’s file.
following
bullets
4 2 When a borrower, who was not previously evaluated
for a HAMP modification, requests a short sale or
DIL, the servicer must determine the basic eligibility
of the borrower as described in the HAFA
Consideration section of this Supplemental
Directive. In addition, the servicer must obtain a
completed Request for Modification and Affidavit
(RMA)2 and evidence of the borrower’s income
sufficient to determine that the borrower meets the
31 percent income eligibility requirement and has
experienced a hardship. The servicers is not required
to obtain an IRS Form 4506-T or 4506-EZ, unless it
is necessary to verify the borrower’s income; to
evaluate the mortgage loan using the NPV test; or, to
apply the standard modification waterfall set out in
Supplemental Directive 09-01. The servicer must
notify the borrower verbally or in writing of the
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Page Paragraph Sentence New Language Deleted Language
availability of a HAMP modification and allow the
borrower 14 calendar days from the date of the
notification to contact the servicer by verbal or
written communication and request consideration for
a HAMP modification. If the borrower does not
wish to be considered for a modification, this does
not trigger a non-approval notice under
Supplemental Directive 09-08, Borrower Notices.
4 3 Borrowers in active Chapter 7 or Chapter 13
bankruptcy cases must be considered for HAFA if
the borrower,3 borrower’s counsel or bankruptcy
trustee submits a request to the servicer. With the
borrower’s permission, a bankruptcy trustee may
contact the servicer to request a short sale or DIL
under HAFA. Servicers are not required to solicit
these borrowers proactively for HAFA. The servicer
and its counsel must work with the borrower or
borrower’s counsel to obtain any court and/or trustee
approvals required in accordance with local court
rules and procedures. Servicers should extend
HAFA timeframes as necessary to accommodate
delays in obtaining court approvals or receiving any
periodic payment when they are made to a trustee.
2
4 Foot Note Servicers may elect to use a proprietary financial
#2 and #3 information form substantially similar to the RMA
and a hardship affidavit in lieu of the RMA.
3
Where the borrower filed the bankruptcy pro se,
(without an attorney), it is recommended that the
servicer provide information relating to the
availability of a HAMP modification and foreclosure
alternatives to the borrower with a copy to the
bankruptcy trustee. This communication should not
imply that it is in any way an attempt to collect a
debt. Servicers must consult their legal counsel for
appropriate language
6 3 3 However, the minimum net proceeds must be at least
equal to or less than the list price minus the sum of
allowable costs that may be deducted from gross sale
proceeds (or the acceptable sale proceeds).
7 1 A borrower may not participate in a HAMP Trial
Period Plan and agree to a HAFA SSA
simultaneously.
7 1 section. this Supplemental Directive and
must utilize
7 2 Bullet 1 if agreed to by the borrower
7 2 Bullet 5 when applicable, …. that …. a contractor …. along if any portion of the commission
with the payment amount (expressed as a fixed must be paid to a contractor of ….
dollar amount or percentage of the contract sales that has been
price) if paid from sale proceeds.
8 Bullet 1 3,000 1,500
8 Bullet 4 percent %
8 3 1 should must

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9 4 4 In addition, the servicer must
verify the borrower’s financial
information through documentation
and obtain a signed Hardship
Affidavit from the borrower prior
to approving the short sale.
9 5 1 this does not trigger a non-approval notice under an SSA with the borrower.
Supplemental Directive 09-08, Borrower Notices
and …. a SSA with the borrower. In such cases, the
servicer should obtain a completed RMA4 and
evidence of income prior to completing the short
sale. The IRS Form 4506-T or 4506-EZ is not
required, unless it is necessary to verify the
borrower’s income and the servicer is not required to
evaluate the mortgage loan using the NPV test or to
apply the standard modification waterfall set out in
Supplemental Directive 09-01.
9 Footnote Servicers may elect to use a proprietary financial
#4 information form substantially similar to the RMA
and a hardship affidavit in lieu of the RMA.

9 5 4 In addition, the servicer must

collect and report the information
required under Supplemental
Directive 09-06 prior to reporting
any HAFA information required by
this Supplemental Directive.
9 5 4 using the Alternative RASS,….incentives then ….the
10 4 Bullet 4 3,000 1,500
11 Bullet 1 HAMP or
11 1 2 percent %
11 2 3 a portion up to an aggregate of $3,000
11 2 4 no more than six ….6 ….$6,000 three …3….$3,000
11 4 Prior to releasing any funds to subordinate
mortgage/lien holder(s), the servicer through its
agent must obtain written commitment from the
subordinate lien holder that it will release the
borrower from all claims and liability relating to the
subordinate lien in exchange for receiving the agreed
upon payoff amount. Although servicers have
discretion to draft policies and procedures for
ensuring that the commitment of subordinate lien
holders is documented prior to closing and such
documentation is retained in the servicing file, they
would be in compliance with HAFA guidelines if
they further required the closing attorney or agent to
either confirm that they are in receipt of this
commitment from subordinate lien holders on the
HUD-1 Settlement Statement, or request that a copy
of the written commitment provided by the
subordinate lien holder be sent to the servicer with
the HUD-1 Settlement Statement which is provided

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in advance of the closing.
11 5 Subordinate mortgage/lien holder(s) may not require
contributions from either the real estate agent or
borrower as a condition for releasing its lien and
releasing the borrower from personal liability. In
addition, any payments to subordinate mortgage/lien
holder(s) related to the short sale or DIL must be
reflected on the HUD-1 Settlement Statement, as
applicable.
12 1 1 should follow local or state laws or regulations to must ….within ten business days
time the ….of (or earlier if required by state or
local laws)
12 1 2 If local or state law does not require release within a
specified time from the date the servicer receives
payment and satisfies the mortgage, the servicer
must release it first mortgage lien within 30 business
days.
12 6 1 $3,000 $1,500
13 1 1 $3,000 $1,500
13 3 1 $1,500 $1,000
13 4 1 $2,000 ….portion ….the….or paid $1,000….total….up to $3,000 in
….
subordinate lien holders, or for
allowing payment of up to $3,000
13 4 3 up to the maximum reimbursement of $2,000.
13 4 4 agree to
13 5 1 or forms that are….similar….content to ….forms form
13 5 2 This Supplemental Directive increases incentives
provided in Supplemental Directive 09-09, which
may impact servicers’ HAFA documents, therefore,
servicers may manually note changes to their
existing HAFA documents until their current supply
of forms are exhausted, however, use of the revised
HAFA documents or forms that are substantially
similar in content is required by June 1, 2010.
14 5 3 Schedule I and Schedule IV of….,
including those that occur prior to
April 5, 2010
A-1 2 Bullet 3 $3,000 ….$3,000 $1,500 ….$1,500
A-2 2 Bullet 4 may ….6%....$6,000 will….3….$3,000
A-3 2 3 $3,000 $1,500
A-3 4 2 six….6%....$6,000 three….3….$3,000
A-4 1 1 within the next 3 business days,
A-5 5.a. 4 of ___ negotiated…not to exceed
six…(6%)
A-5 5.b. 1 six….6%....$6,000 three….3….$3,000
A-5 5.c. 1 allow to be paid from sale proceeds,….of _____ pay….as stated in the listing
percent agreement between you and your
broker, not to exceed six percent
(6%)
A-5 5.c. 5 , and this vendor must be paid
____% [or $____] from the

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commission.

A-5 5.c. 6 . The vendor and your listing broker will work
together on your behalf to facilitate the sale process.
[Choose one and delete unnecessary text.] [The
vendor will be paid from sale proceeds [$ ________]
OR [an amount equal to ____% of the sales price].]
OR [The vendor will be paid by us outside of the
sales transaction.]
A-6 5.d. 1 $3,000 $1,500
A1-2 2.h. $3,000 $1,500
B-2 1.b. 1 six….6%....$6,000 three….3….$3,000
B-2 1.c. 1 allow to be paid from sale proceeds, pay
B-2 1.c. 4 , and this vendor must be paid
____% [or $____] from the
commission.
B-2 1.c. 5 . The vendor and your listing broker will work
together on your behalf to facilitate the sale
process. [Choose one and delete unnecessary
text.] [The vendor will be paid from sale proceeds
[$ ________] OR [an amount equal to ____% of
the sales price]. OR [The vendor will be paid by us
outside of the sales transaction.]
B-2 1.d. 1 $3,000 $1,500
B-4 2.h. $3,000 $1,500
C-1 3 3 $3,000 $1,500
C-1 4 Bullet 1 six….6….$6,000 three….3….$3,000
C-2 3. 1 $3,000 $1,500

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