May 10, 2009
Authored by: Bryan Cave Leighton Paisner
On April 28, 2009, Treasury announced updates to the Making Home Affordable Program. As previously discussed, the Treasury’s Making Home Affordable program, which is aimed at helping 7 to 9 million homeowners, consists of two programs: The Home Affordable Refinance Program and the Home Affordable Modification Program. The newly announced updates address modifications to second mortgages where the first mortgage has been modified under the Home Affordable Modification Program.
The important thing for homeowners to recognize is that the modification to the second mortgage is automatic. That is, if the holder of the second mortgage is a participating servicer under the Making Home Affordable Program, then the holder must modify the second mortgage whenever a first mortgage is modified under the Program. The updates address both traditional, amortizing second mortgages and interest-only second mortgages.