Home Affordable Modification Program
Treasury/FHA Second Lien Program (FHA2LP): Overview

Treasury/FHA Second Lien Program (FHA2LP): Overview

In August 2010, FHA released guidance for implementation of the FHA Refinance of Borrowers in Negative Equity Positions Program through Mortgagee Letter 2010-23. This program allows borrowers who are current on a negative equity mortgage to restructure their debt and refinance into an FHA-insured first lien loan. To facilitate this refinance opportunity, Treasury, as announced in Supplemental Directive (SD) 10-08 and made operational in SD 10-12, will provide incentives when there is partial or full extinguishment of second liens associated with an FHA refinance. Treasury has designated Bank of New York Mellon (BNYM) as incentives processor for FHA2LP.

FHA2LP expired on 12/31/2013.

MHA Handbook & Guidance | Loan Reporting Documents

MHA Handbook and Guidance

Making Home Affordable Handbook v5.1
Chapter VII of the MHA Handbook provides guidance to servicers for adoption and implementation of FHA2LP.
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Please note: There may be a time delay for new MHA Handbook publication updates to appear in the AllRegs Library.


Supplemental Directives listed below are not incorporated, unless otherwise stated, in the current version of the MHA Handbook.

Loan Reporting Documents

  • BNYM FHA2LP Data Dictionary

  • BNYM catalogue of all data elements and associated metadata for the program, including the names, definitions, allowable values, and data types. It also defines the functional areas where the data elements are being used.

  • MHA Third Party Authorization Form

  • Borrowers should use the form to provide authorization to third parties including but not limited to: the MHA Support Centers (HSC and MHA Help), attorneys, housing counselors, non-borrower family members, servicers, Housing Finance Agencies and any other non-borrower individuals or groups assisting the borrower with their loan modification, to provide and discuss the borrowers’ personal information. Servicers, subject to applicable law, must accept the form.
    (Last Updated: January 22, 2014 )