Transcript HAFA Short Sales US Treasury, Fannie Mae & Freddie Mac

HAFA Short Sales
US Treasury, Fannie Mae &
Freddie Mac Programs
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Module 1:
HARP, HAMP &
HAFA Overview
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What the Heck are
HARP, HAMP & HAFA?
• Home Affordable
Refinance Program
• Home Affordable
Modification Program
• Home Affordable
Foreclosure Alternatives
• Short Sale
• Deed-in-Lieu
Note:
HAFA does not
apply to
FHA or VA loans
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Seller Advantages
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$3,000 cash to seller
Foreclosure suspension
Liability release
No notes or $$$ contributed
More $$$ for 2nd liens
Pre-approved short sale
Approval or denial in 10 Biz days
Deed-in-lieu possible with $3,000
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Advantages for
Real Estate Pros
• Standard forms
• No $$$ contribution
• No last minute
commission negotiations
• Quicker approval or denial
• Listing remarks
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HAFA Disadvantages
• Monthly
payments?
• Slow start
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June 2012 Changes-Overview
• Owner occupancy eliminated
• $3,000 available to owneroccupants or tenants
• $8,500 available for 2nd loans
• Credit reporting improved
• Extended thru 2013
• Sale must close by 9-30-2014
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Why REALTORS®
Need to Know HAFA
• Code of Ethics
• Risk Management
& Risk Reduction
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Terminology, Definitions &
Alphabet Soup
• Borrower
• Servicer
• Investor
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Alphabet Soup
• GSE
• GSE Loan (Fannie or
Freddie loan)
• Non-GSE Loan
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Alphabet Soup
• SSA
• RASS
• Alt. RASS
• DIL
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More Alphabet Soup
• MANP
• MI
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Supplemental Directives
• Supplemental Directives
• US Treasury
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Announcements & Bulletins
• Announcements
• Fannie Mae
• Bulletins
• Freddie Mac
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MHA Handbook &
Servicing Guides
• MHA Handbook
• Servicing Guides
• Fannie & Freddie
• Access through
“AllRegs” links
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www.HMPadmin.com
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www.efanniemae.com
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www.FreddieMac.com
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www.MakingHomeAffordable.gov
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HARP
Home Affordable
Refinance Program
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HARP Eligibility
–Owner or non-owner
occupied, 1-4 family
–Fannie or Freddie loan
–Payments current
–LTV 80% - no max
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HAMP
Home Affordable
Modification
Program
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HAMP Eligibility
Principal residence, 1-4 family
$729,750 max balance (SFR)
1st position loans
Originated on or before 1-1-09
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HAMP Eligibility
Payment on 1st loan exceeds
31% of gross income
Financial Hardship
Delinquent or default
reasonably foreseeable
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