Submitting Loans to the Net Present Value
Test Using the Base NPV Model Software
When determining whether a borrower is eligible under the Home
Affordable Modification Program (HAMP), the loan must be evaluated
using a standardized net present value (NPV) test that compares the
expected economic outcome of the loan with and without the proposed
HAMP modification. Servicers can perform the NPV test using one of the
following two options:
Using the base NPV model software tool available to participating
servicers in the secure servicer area (using the Participating
Servicer Login) of the HAMP Web site www.HMPadmin.com; or
If permitted in accordance with Supplemental Directive 09-01,
using a customized model developed by the servicer to meet the
specific methodology and standardized guidelines put forward for
NPV models used by the HAMP.
This job aid is only applicable to use of the base NPV model software tool.
Note: Instructions for retrieving and interpreting NPV test results provided
by the base NPV model software tool are provided in the job aid,
“Retrieving and Interpreting the NPV Test Results.”
To submit loans to the base NPV model using the base NPV model
software tool, follow these steps:
Step 1. Log in to the secure servicer area of the HAMP Web site
Click LOGIN NOW on the main page.
Enter the User ID and Password that you were assigned
when you registered for the HAMP.
Step 2. The first time you log in you will be asked to accept the terms and
conditions of the Web site. Check the appropriate box and click
Step 3. Click the Base NPV Model Tools & Documents link.
Step 4. To save the base NPV model software tool to your hard drive,
click the Base NPV Model link.
You will see a dialog box asking whether you want to open or
save the zip file. Click Save.
Note: The appearance of this dialog box may differ slightly
depending on the version of Windows® that you are running
Step 5. Unzip the file. To do so, double-click the zip file you saved in the
previous step. Then, extract the .xls file from the zip file and
save to your hard drive.
Step 6. Open the base NPV model software tool by double-clicking the
NPV-Model.xls file saved to your hard drive. The base NPV
model software tool will open in a Microsoft® Excel®
When prompted by the security warning, select Enable Macros.
Note: If you have concerns about the spreadsheet authenticity,
click Details from the Security Warning box and then View
Certificate. Verify that the certificate is issued to Fannie Mae and
issued by VeriSign®. If not, delete the spreadsheet file and return
to Step 1.
Step 7. Click Net Present Value from the main navigation screen.
Step 8. Familiarize yourself with the requested input data. The data falls
into three categories:
Borrower and loan information, available in most
Servicer inputs, including the discount rate premium,
modification fees, and mortgage insurance partial claim
Terms of the modification, including the interest rate after
modification, amortization after modification, and other
Step 9. Complete one row of the spreadsheet for each loan.
To enter data, you can either key it in or copy the data from
another spreadsheet. When pasting data copied from another
spreadsheet, use the Paste Special function from the Edit menu
on the Microsoft® Excel® toolbar and select Values to remove
For more information on using the base NPV model software
tool and for a complete list of data required by the base NPV
model software tool, click on the Base NPV Model User Guide
link located in the secure servicer area of the Home Affordable
Modification Program Web site www.HMPadmin.com. (Refer to
Steps 1 – 3 of this job aid.)
Obtain recent (less than 90 days old at the time of
evaluation) borrower and co-borrower financial information,
including credit score, current gross income, and debt levels,
both mortgage- and non-mortgage-related
Ensure that the data you enter is both valid and accurate.
While the base NPV model software tool does enforce the
correct format for data entry, the base NPV model itself is
not designed to detect inaccurate or invalid loan-level data.
Incomplete or improperly formatted data in any field may
result in a loan file being rejected and returned to you
without an NPV result. Further, inaccurate data, even if
properly formatted, will result in an invalid NPV result.
If there are two borrowers, enter credit scores for both the
borrower and co-borrower.
The current value of the property securing the loan is a key
variable. When determining “Current Property Value”
(column AA), you may use the GSE’s automated valuation
model (AVM), your firm’s own AVM (provided the AVM
renders a valuation with a reliable confidence score), a
broker’s price opinion, or an appraisal. In all cases, the
property valuation used cannot be more than 90 days old at
the time the NPV test is performed.
Your initial proposed modification submission should
assume that the advance mortgage insurance payment (“MI
Partial Claim Amount” in column AJ) equals zero (0).
If the NPV test result for a non-GSE loan comes back
negative and the applicable mortgage insurer, after review,
proposes a partial claim payment, enter that claim payment
amount into column AJ, and resubmit the loan to the base
NPV model for retesting. (Do not adjust assumptions such
as the discount rate premium and default/re-default
equations after entering a mortgage insurance partial claim
Step 10. Confirm that the data on the screen is complete, accurate, and
agrees with your records.
Step 11. Click Validate.
If any required fields are incomplete, the base NPV model
software tool generates an error message and highlights the
incomplete row. If you receive a validation error message,
complete the required data field and click Validate again.
When your validation is successful, the base NPV model software
tool generates a submission file and the Validation Successful
window displays the location and name of your submission file.
Do not rename the submission file.
Step 12. Copy the complete location and file name from the Validation
Successful window by highlighting the text and pressing Ctrl+C
on your keyboard and click OK.
The NPV Transaction Portal login page appears.
Step 13. Enter your NPV Transaction Portal User ID and Password (the
same User ID and Password you use to login to the secure
servicer area (the Participating Servicer Login) of the HAMP Web
site (www.HMPadmin.com) and click Log In.
To submit loans for evaluation by the base NPV model, click
Upload New NPV Production Files.
The Send NPV Production documents screen appears.
Step 14. On your first use of the NPV Transaction Portal you will be asked
to accept an End User License Agreement. Review the
Agreement and select the checkbox to indicate that you agree to
the terms. If you do not select the checkbox to accept the terms,
you will not be able to submit loans to the base NPV model.
Paste the complete location and file name (copied in Step 12) in
the Document field by pressing Ctrl+V on your keyboard and
Your submission file will be uploaded for processing and will
appear on the Active Files tab of the NPV Transaction Portal.
Step 15. After confirming that your data has been submitted
successfully, you must save your data to a separate file. You
must maintain detailed documentation of all your submissions
to the base NPV model, including the base NPV model used
and all NPV inputs and assumptions.
The Save As window appears with the file name for the base
NPV model software tool. Choose a location and a new file name
for the backup copy of your data. The file name must be different
than the file name for the base NPV model software tool and
should end in .xls.
Note: You cannot save the original base NPV model software
tool with data. You must use the backup function which allows
you to save your entered data to another filename. If you need
to resubmit data, you can copy the data from the backup file and
paste it into the base NPV model software tool.
Step 16. After you have saved a backup copy of the spreadsheet data,
click Clear to erase previously submitted data from the base
NPV model software tool.
Step 17. Retrieve your results following the steps described in the job aid,
“Retrieving and Interpreting the NPV Test Results.”