Fannie Mae is bolstering the incentive fees paid to servicers modifying the GSE’s loans through the Home Affordable Modification Program (HAMP). The new incentives apply to all HAMP mods with a trial period effective date of October 1, 2011 or later.

In a servicing policy update issued just before the Labor Day holiday, Fannie Mae explained that it will begin paying servicers based on a tiered incentive structure that coincides with the number of days the mortgage loan has been delinquent when the trial plan starts.

The GSE says the new fee structure “encourages the servicer to identify and provide an appropriate solution to a borrower who is experiencing a financial hardship at the very early stages of the delinquency.”

For HAMP trials that are initiated at the 120-day delinquency mark or before, the incentive amount goes up to $1,600. It’s $1,200 for loans that are 121-210 days delinquent at the start of the trial, and $400 for loans that are more than 210 days past due.

Fannie Mae will no longer pay the additional $500 incentive fee on mortgage loans that are either current or less than 60 days delinquent, but facing imminent default.