WEST LAFAYETTE, Ind. – Purdue University Employees FCU is the fifth credit union to be approved as a servicer in the Home Price Decline Protection component of the Treasury Department’s mortgage refinance Home Affordable Modification Program, or HAMP.
The HAMP provides additional incentive payments for modifications on properties located in areas where home prices have recently declined. The purpose of the HPDP is to encourage additional lender participation and HAMP modifications in areas with recent price declines by helping to offset any incremental collateral loss on modifications that do not succeed.
The Treasury has allocated up to $10 billion for the HPDP program. The funds available to individual servicers to pay HPDP and all other incentives on HAMP modifications will be capped according to the Program Participation Cap included in their Servicer Participation Agreement. Servicers’ initial caps are based on the Treasury’s estimation of the number of modifications expected to be performed by each servicer during the term of HAMP.
The other credit unions approved as servicers are: Mission FCU, Wescom Central CU, Technology CU and IBM Southeast Employees FCU.
