Other than the standards presented in the President’s Plan, there are no consistent nationwide servicer mortgage loan modification standards now in place. Industry practice is varied. Recent developments make it clear that consistently elevated and reliable standards are needed. Response to The Plan’s modification challenge must be both consistent and perceived as fair, otherwise it will not succeed. Ethical and effective self-regulation is the most effective way to accomplish this. The Plan provides a good beginning and will elevate the level of what henceforth may be considered appropriate modification standards, but it is our belief that even these standards can be further strengthened during this crisis resulting in more effective and sustainable standards satisfactory to borrowers and lenders alike going forward.

AAHMP Goals:

1. Provide reliability to the process by ensuring transparency, consistency, and sustainability sufficient to satisfy participants and to rapidly stabilize real estate markets.

2. Respond quickly and consistently nationwide so that the process is as even as possible while strengthening rather than weakening broader markets.

3. Establish baseline consistencies that will engender the confidence of participants in the process and in the local markets in which it is conducted and be considered reliable nationwide.