For all who do not know HAFA has already changed the rules:
Updates to the HAFA program include increasing incentives for borrower relocation assistance, compensation to the servicer, reimbursement to the investor to pay off subordinate lien holders, increasing the cap amount investors can offer to subordinate lien holders. These incentives are retroactive and apply to any short sale or DIL completed as part of HAFA.
Some key changes:
- Changes borrower relocation from $1500 to $3000
- Each subordinate lien holder, in order of priority may be paid no more than 6% of the unpaid principal balance of their loan until the $6,000 aggregate cap is reached. (Previous cap was $3,000)
The changes to the initial directive can be found here:
https://www.hmpadmin.com/portal/docs/hafa/changetemplatesd0909r.pdf
The new revised 09-09 Supplemental Directive with the changes can be found here:
https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf
Also this Group appears to believe that HAFA in its current form applies to Fannie Mae and Freddie Mac loans which is not the case. They will be releasing their own set of rules which will be released later. This stems from several webinars located at the NAR website: www.realtor.org/shortsales
http://link.brightcove.com/services/player/bcpid74425227001 and https://realtors.webex.com/realtors/lsr.php?T=pb&SP=EC&rID=…
Also I have just found a great overview of the HAFA program NAR released and have attached it for anyone who wants it. (http://www.realtor.org/wps/wcm/connect/ef66df0041fa182e988ffcc7ba2f…)
Special note should be given to two things:
Contrary to what is being presented here, a borrower does not have to be participating in HAMP or even have requested a modification in order to request a short sale through HAFA.
- Servicers must consider HAMP-eligible borrowers for HAFA within 30 days after the borrower does at least one of the following:
- Does not qualify for a HAMP trial period plan
- Does not successfully complete a HAMP trial period plan
- Is delinquent on a HAMP modification (misses at least 2 consecutive payments)
- Requests a short sale or DIL
and
- Modified HAFA rules for loans owned or guaranteed by Fannie Mae or Freddie Mac are being developed (check www.realtor.org/shortsales for updates). HAFA does not apply to FHA or VA loans.
