The Nuts and Bolts of HAFA – Which lenders are participating? Part 3 of 3
As we come to the final part of the series, and have learned about the details and the eligibility of the HAFA program; we have learned that it is beneficial to the homeowner who cannot qualify for loan modifications. And because the lenders typically will net more through a short sale than foreclosure, it makes financial sense for them to participate, especially in conjunction with the bonus components which have increase dramatically as of March 26, 2010.
So without further adieu, the list of lenders and servicers who have agreed to participate with the HAFA program are posted below. For the full detailed list, please click on the final link below.
Who is Supporting HAFA?
Lender and loan servicers participating in HAFA must have signed a servicer participation agreement with Fannie Mae – the program administrator and financial agent representing the United States in this case – to participate in HAMP by December 31, 2009. Therefore, most lenders are participating. As April 5 approaches, lenders are developing comprehensive programs in order to prepare for the expected flood of applications for short sale agreements and deeds-in-lieu of foreclosure that HAFA will unleash.
Bank of America
- Bank of America announced in March its commitment to participate in HAFA when it activates. It has been preparing for a more streamlined process for months though its support of HAMP.
- Bank of America’s short sale processor Equator has announced the launch of a brand-new best practices software workflow solutions directly related to HAFA.
Citibank
- Citibank is participating in HAMP which is a requirement for participating in HAFA
GMAC Financial Services
- GMAC has started a program to preemptively contact borrowers who are not eligible for loan modifications under HAMP and offering discussing alternatives through HAFA and claims a three-day turnaround on short sale applications
Lenders Asset Management Corporation (LAMCO)
- LAMCO has been training teams of specialists to support mortgage servicers comply with HAFA and quickly negotiate short sales
Wachovia
- Wachovia is participating in HAMP which is a requirement for participating in HAFA
Wells Fargo
- Wells Fargo is participating in HAMP which is a requirement for participating in HAFA
- Wells Fargo has been ramping up efforts to assist homeowners by actively contacting those who are facing hardships
NATIONAL PARTICIPATING SERVICERS
Currently, the HAFA Program has not been activated. Therefore, there is not yet an official list of participating lenders. Generally speaking, lenders who participate in HAFA are also participating in HAMP. For a full list of servicers participating in HAMP, visit Making Home Affordable’s Participating Servicers List.
Another Short Sale Approved!
Got another Short Sale approved today with no promissory note or contribution required from sellers. It’s was a good day. Sellers get to walk away from a house that is worth less than what they owe on it and the bank gets to sell for a price higher than the list price and not have to continue to pay for property taxes, HOA dues and other carrying costs and make a clean break.
Feeling good because one less family has to suffer under the burden of foreclosure and its consequences.
