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What to Do When Your Servicer Asks You to Re-Verify Income Documentation

1. Ask why they need it.

  • HAMP only requires that documentation be within 90 days at the time of the servicer receives it. See HAMP Sup. Dir. 09¬07, p. 2, Sup. Dir. 10-01, p. 2.
  • HAMP does not require verified income to be resubmitted before the permanent modification. See HAMP Sup. Dir. 09-07, p.2.
  • Property valuation similarly does not need to be updated once obtained. See HAMP Sup. Dir. 09-07, p. 6.
  • Servicers are supposed to have procedures in place “to ensure that borrowers are not required to submit multiple copies of documents.” See HAMP Sup. Dir. 10-02, p. 4
  • HAMP probably allows for servicers to re-verify income more often if required by the investor. See HAMP Sup. Dir. 10-01., p. 4. If the servicer says the investor requires more frequent re-verification, ask them to give you a copy of the PSA or other contract that requires more frequent verification.

2. Remind the servicer of the timelines established by HAMP Sup. Directives 09-07 and 10-01.

  • Notification of receipt within 10 business days of receipt. See HAMP Sup. Dir. 09-07, p. 7, Sup. Dir. 10-01, p. 2.
  • Notification of decision or of incomplete submission within 30 calendar days. See HAMP Sup. Dir. 09-07, p. 7, Sup. Dir. 10-01, p. 3. Any request for information beyond this 30 day time period is untimely.

3. Call Howard Law, P.C. at 1-800-872-5925 for assistance with your loan modification today. We have helped many homeowners who have been previously rejected by their lenders for a HAMP or other loan modification.

- July/August 2010, NCLC Reports Bankruptcy and Foreclosures Edition