Loss mitigation: home retention options
MGIC offers loss mitigation home retention options to ensure every available option is offered to keep borrowers in their homes. See the MGIC Default Servicing Guide for guidelines and reporting requirements for the options below.
You have authority to complete forbearance plans on MGIC-insured loans that meet MGIC Delegated Guidelines. Forbearance plans falling outside of MGIC Delegated Guidelines must be approved before implementation.
You have authority to complete repayment plans on MGIC-insured loans that meet MGIC Delegated Guidelines.
- The repayment term may not exceed 6 months from the loan due date.
- Repayment plans falling outside of MGIC Delegated Guidelines must be approved before the plan is implemented.
MGIC supports the US Treasury Home Affordability & Stability Plan’s HAMP program, designed to help at-risk homeowners.
- A HAMP loan modification should be offered on every MGIC-insured loan that meets program criteria.
- The effective date of the modification must be prior to the program end date, Dec. 31, 2015.
- You have delegated authority to modify MGIC-insured loans that meet HAMP criteria set by the US Treasury for Fannie Mae, Freddie Mac and non-GSE loans.
- If the loan is ineligible for HAMP, then offer the borrowers either a traditional/nontraditional modification or a special GSE loan modification program.
On a monthly basis, use MGIC/Link Servicing to report HAMP trial status, HAMP modification updates and completed HAMP modifications.
A loan modification should be offered on every MGIC-insured loan when borrowers have the desire and financial ability to continue making their mortgage payment after the loan is modified.
You have authority to perform loan modifications that meet MGIC Delegated Guidelines. If you find that the loan does not qualify for a traditional modification program, we will work with you to explore alternative home retention options.
When you report a loan modification, MGIC will notify you whether the approval is with or without limitations. See Section 2.05a for details.
Report completed loan modifications via MGIC/Link Servicing – select Loan Modification in the main menu.