2nd Lien Modification Program (2MP)

Through the Making Home Affordable project passed in response to the financial crisis of 2007, homeowners having difficulty making payments on a second home lien may gain assistance with the "2nd Lien Modification Program" (2MP). This program is specifically designed for individuals who would be able to pay their current mortgage if the second lien on their home was more affordable. This program offers a way to reduce the cost of the second mortgage, helping both mortgage servicers and borrowers avoid negative consequences of default. 

HAMP and 2MP

2MP is a sister project of the Home Affordable Modification Program (HAMP). HAMP is a program designed to help homeowners refinance or modify the primary mortgage on their home. In order to be eligible for 2MP, you must already have refinanced your primary mortgage through HAMP. You must be willing to provide information on the refinance you already received on your primary mortgage to your second lender. The government offers an incentive to lenders willing to reduce your second mortgage through the 2MP program. If the mortgage servicer is participating in the 2MP program to receive these incentives, you will be able to qualify for the program. 

Qualifying for 2MP Assistance

In order for you to qualify for assistance through the 2MP program, the following must be true:

  • You have a primary lien modified through the HAMP incentive
  • You have a second lien with a 2MP participating servicer
  • The lien that originated prior to January 1, 2009
  • You have more than $5,000 of principal debt or a payment over $100 monthly
  • You do not owe outstanding or delinquent debts to the Federal government
  • The loan is not be subordinate to another second lien
  • The loan is not a home equity loan in the position of a primary lien
  • The lien is not the second portion of a lien that will only come into effect once the first lien is paid in full
  • The lien is in good standing (i.e., not in default or bankruptcy state)

2MP Benefits

The incentives supplied to a borrower through this program as extremely beneficial. If you do qualify for the 2MP program, you will be able to receive:

  • A rate reduction to 1 percent on any second lien that is amortizing (i.e., pays both principal and interest)
  • A rate reduction to 2 percent on any interest-only loans
  • A loan extension to a 40-year payment plan
  • A guaranteed carryover of any forbearance you received on your first mortgage to your second mortgage
  • Potential to have a portion or all of your second lien forgiven through incentives given to the lender by the 2MP program

Applying for the 2MP Program

Lenders participate in this program in order to receive funding from the government. They additionally prefer to work with a borrower to reduce payments than to see the loan go into bankruptcy. It is very rare to successfully recover income once a loan has gone into bankruptcy. To apply, the first step to applying for assistance is refinancing your primary lien through HAMP. Next, assure your lender is participating in the 2MP program. Provide your lender with information on your first refinance agreement, and begin the application of applying for modification on your second lien. 

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