Fannie Introduces Its Version Of HAFA

Posted by Orb Staff on June 02, 2010 No Comments
Categories : Mortgage Servicing

ong-anticipated move, Fannie Mae has formally introduced its version of Home Affordable Foreclosure Alternatives (HAFA), the federal short-sale and deed-in-lieu program. HAFA, introduced as loss mitigation backup to the Home Affordable Modification Program (HAMP), provides incentives to servicers, borrowers and investors to perform short sales or deeds-in-lieu of foreclosure in cases where a borrower does not qualify for HAMP. Like the non-government-sponsored enterprise version of HAFA, Fannie Mae's program uses borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis. Fannie Mae encourages its servicers to implement the HAFA policies and procedures immediately and requires full compliance by Aug. 1. Under the program, allowable payments to subordinate lienholders must not exceed $6,000 in aggregate. Each lienholder, in order of priority, may be paid 6% of the UPB of its loan, until the $6000 cap is reached. Servicers stand to receive $2,200 for a successful short sale and $1,500 for a successful DIL under Fannie Mae's HAFA program. A borrower's relocation assistance (i.e., cash-for-keys offer) is capped at $3,000. Fannie Mae's full Servicing Guide announcement is available [link=https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/svc1007.pdf]here[/link]. SOURCE: [link=https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2010/svc1007.pdf]Fannie Mae

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