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Dow at 18-Month High - CNNMoney.com -- Stocks gained Monday, with health care shares leading the way as Congressional approval of a sweeping reform bill removed the uncertainty that has surrounded its passage for months.

The Dow Jones industrial average rose 44 points, or 0.4%, ending at a fresh 18-month high. The S&P 500 index gained 6 points, or 0.5%, and closed just shy of the 18-month high hit last week. The Nasdaq composite gained 21 points, or 0.9%, closing at a more than 18-month high.

Treasurys rise after health care bill passes - CNNMoney.com -- U.S. debt prices rose Monday, after the House passed a historic health care bill the previous evening.
What prices are doing: The benchmark 10-year note rose 9/32 to 99-23/32 and its yield fell to 3.664%. The 30-year bond rose 4/32 to 100-27/32 and its yield fell to 4.63%. Bond prices and yields move in opposite directions.

HAMP Alternative Announced in Another Attempt to Reduce Foreclosures -  Fannie Mae has introduced another strategy to increase the effectiveness of the government foreclosure initiatives: The Alternative Modification Program

HAMP has been widely criticized for what has so far been a poor record of converting home mortgages entered into a required three month trial phase into permanent modifications.  As of the end of February HAMP (which also includes non-Fannie Mae and Freddie Mac mortgages) had finalized modifications on only 168,701 loans out of the 1.354 million who had been extended invitations to participate in the program.

Effective for mortgage loans in active HAMP trials initiated prior to March 1, 2010, servicers are now required to consider the Alternative Modification™ (Alt Mod™) prior to initiating foreclosure proceedings for those borrowers who were eligible for and accepted into a Home Affordable Modification Program (HAMP) trial period plan but were subsequently denied a permanent modification because of eligibility restrictions or failure to submit proper documentation. Servicers have maintained that borrowers were delaying or failing to provide the required documentation while borrowers and community groups have accused servicers of losing or mishandling the information.

Alt Mod eligibility criteria includes:

• The loan must have been evaluated and considered eligible for HAMP
• The HAMP trial period must have been initiated prior to March 1, 2010
• The loan must be secured by a one- to four-unit owner-occupied property
• The borrower must have made all required payments in accordance with a HAMP trial period plan, including subsequent payments that may have been due while the servicer attempted to convert the trial period to a permanent modification
• Any subsequent trial period payment(s) due from the borrower must be submitted prior to executing a permanent modification agreement

• The loan must have been evaluated and considered eligible for HAMP • The HAMP trial period must have been initiated prior to March 1, 2010 • The loan must be secured by a one- to four-unit owner-occupied property • The borrower must have made all required payments in accordance with a HAMP trial period plan, including subsequent payments that may have been due while the servicer attempted to convert the trial period to a permanent modification • Any subsequent trial period payment(s) due from the borrower must be submitted prior to executing a permanent modification agreement

Saying that contacting borrowers in a timely manner is key to the success of the Alt Mod program, the letter sets forth a schedule for contact and follow up which includes mail, phone and direct contact and a door-knocking campaign.  Servicers who fail to comply with the guidelines could lose their own incentive payments.