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HAMP Creates Cash Flow Implications for Securitization: Amherst 

Aug 19, 2009By

The administration’s Home Affordable Modification Program (HAMP), which allocates federal incentives to servicers, lender/investors and borrowers that participate in mortgage modifications, is creating significant repercussions for the secondary market. HAMP failed initially to address the treatment of forborne principal and the manner in which modifications should be handled in terms of delinquency triggers among securitizations, according to market insight this week from Amherst Securities Group.

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