Fannie Mae Introduces HAFA Program

On Tuesday, June 1, Fannie Mae issued Servicing Guide Announcement SVC-2010-07, introducing Fannie Mae’s Home Affordable Foreclosure Alternatives (HAFA) Program. It, like Treasury’s Home Affordable Foreclosure Alternatives Program, is designed to mitigate the impact of foreclosures on borrowers who are eligible for a loan modification under the Home Affordable Modification Program (HAMP) but ultimately are unsuccessful in obtaining one. Read more on HAFA.

Freddie Mac Revises HAMP Backup Modification Requirements

On June 18, 2010, Freddie Mac announced that it has revised certain eligibility, solicitation and reporting requirements for its HAMP Backup Modifications program. Under the revised Freddie Mac guidelines, if a borrower has made three HAMP Trial Period payments by June 18, 2010 and meets the Freddie Mac Backup Modification eligibility requirements, servicers must cancel the HAMP Trial Period Plan and evaluate the borrower for a Freddie Mac Backup Modification. Freddie Mac is requiring servicers to send an eligible borrower a Freddie Mac Backup Modification offer no later than 30 calendar days from the date of this notice, Bulletin 2010-14. Review the Bulletin.

June 30 Closing Date Update

The House of Representatives passed HR 5623, the Homebuyer Assistance and Improvement Act of 2010, on June 29 by a vote of 409-5. This bill would extend the deadline for closing tax credit eligible transactions from June 30 to September 30, 2010. The bill now moves to the Senate where the outcome is much less certain. NAR will continue to update you as the events move forward and will continue to aggressively push House and Senate leadership to extend the date. Read more on the tax credit.

Condominium Policy/Approval Process

NAR has urged the Federal Housing Administration (FHA) and the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, to develop policies that will give current homeowners and potential buyers of condos access to more flexible and affordable financing opportunities and a wider choice of approved condo developments. Find out all the details.