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HAMP
RISK BASED CAPITAL REQUIREMENTS
COMMENT PERIOD
FROM THE CEO OF THE AFN:
Dear Industry Friends and Colleagues:
This is to advise that the Federal Government has issued a notice entitled; " Interim Final Rule on Capital Treatment of Mortgage Loans Modified Under HAMP." A copy of the notice can be viewed online by CLICKING HERE.
In a nutshell; The Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and Office of Thrift Supervision invited public comment on an interim final rule that provides that mortgage loans modified under the U.S. Department of the Treasury's Making Home Affordable Program (MHAP) will retain the risk weight applicable before modification.
On March 4, 2009, the Treasury announced guidelines under the MHAP to promote sustainable loan modifications for homeowners at risk of losing their homes to foreclosure. The interim final rule would provide a common interagency capital treatment for mortgage loans modified under MHAP. For example, mortgage loans risk weighted at 50 percent prior to modification would continue to be risk weighted at 50 percent after modification provided they continue to meet other applicable criteria.
Important Notice: Public comments must be submitted within 30 days after publication in the Federal Register. The interim final rule will take effect upon publication in the Federal Register, which is expected shortly.
Best regards,
William M. LeRoy, President and Chief Executive Officer
American Legal & Financial Network (AFN)
Office: 623.414.3242
Mobile: 480.776.9444
Fax: 623.414.3177
wleroy@e-afn.org
www.e-afn.org
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