On Aug. 9, the U.S. Department of the Treasury released Supplemental Directive 11-08: Home Affordable Foreclosure Alternatives Program (HAFA) – Policy Update containing updates to the program. Bank of America fully implemented these changes effective Oct. 15.
Policy enhancements impact agents and borrowers:
- An FAQ clearly defines program criteria and rules. Borrowers can access the information from the Home Loan Assistance website at bankofamerica.com/homeloanhelp by:
- Navigating to the Next Steps section or selectingFrequently Asked Questions from the Additional Support area.
- Look for the “If my mortgage is not owned by Fannie Mae or Freddie Mac…” question and select Home Affordable Foreclosure Alternatives Policies.
- Subordinate lien cap of $6,000 does not apply to non-mortgage subordinate liens; however, a portion of the gross proceeds may be negotiated toward payment of the non-mortgage subordinate liens.
- Defined process for property re-evaluation and for requesting value reconsiderations.
- Borrower relocation incentive may be used to pay transaction costs.
*Please Note: This guidance does not apply to mortgage loans that are owned or guaranteed by Fannie Mae or Freddie Mac, insured or guaranteed by the Veterans Administration, the Department of Agriculture’s Rural Housing Service or insured by the Federal Housing Administration.
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