The Home Affordable Foreclosure Alternatives (“HAFA”)
Program has been extended through 2013 pursuant to Supplemental Directive 12-02.
This extension is coupled with many changes to the Policies governing HAFA, effective
June 1, 2012, which servicers shall implement immediately. They are, including
but not limited to, the following:
1 )
Occupancy
Requirements:
None, although the following conditions exist: Borrower(s) must not have
purchased another residential property in the previous twelve (12) months, nor
can the property be owned or secured by a business entity.
2 )
Relocation
Assistance:
$3,000.00 is limited to the primary occupant of the premises at the time of execution
of the agreement (short-sale or deed-in-lieu). Occupants must vacate on or before closing. Vacant properties
are ineligible for this option.
3 ) Second Lien Maximum: Increased from $6,000.00 to $8,500.00.
3 ) Second Lien Maximum: Increased from $6,000.00 to $8,500.00.
4 )
Debt
to Income Ratio:
A borrower’s monthly mortgage payments are now permitted to exceed 31% of a borrower’s
grossly monthly income, allowing a servicer to accept full payment to keep the
borrower current on their mortgage.
5 ) Credit Bureau: If a deficiency is forgiven as a result of a short-sale or deed-in-lieu, the following Base Segment fields may be reported as follows, if applicable: Account Status Codes amended to 13 (Paid or closed account/zero balance) OR 65 (Account paid in full/foreclosure started).
The following
amendments to HAFA should greatly improve its goal of assisting borrowers in
need. Supplemental Directive 12-02 in its entirety can be found here: https://www.hmpadmin.com/5 ) Credit Bureau: If a deficiency is forgiven as a result of a short-sale or deed-in-lieu, the following Base Segment fields may be reported as follows, if applicable: Account Status Codes amended to 13 (Paid or closed account/zero balance) OR 65 (Account paid in full/foreclosure started).