Home Affordable Foreclosure Alternatives Program: Overview
The Home Affordable Foreclosure Alternatives (HAFA) Program provides additional options to avoid costly foreclosures and offers incentives to borrowers, servicers and investors who utilize a short sale or deed-in-lieu (DIL) to avoid foreclosures. HAFA alternatives are available to all HAMP-eligible borrowers who: 1) do not qualify for a Trial Period Plan; 2) do not successfully complete a Trial Period Plan; 3) miss at least two consecutive payment during a HAMP modification; or, 4) request a short sale or DIL.
In a short sale, the servicer allows the borrower to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a DIL. With a DIL, the borrower voluntarily transfers ownership of the property to the servicer - provided the title is free and clear of mortgages, liens and encumbrances. With either the HAFA short sale or DIL, the servicer may not require a cash contribution or promissory note from the borrower and must forfeit the ability to pursue a deficiency judgment against the borrower.
HAFA simplifies and streamlines the short sale and DIL process by providing a standard process flow, minimum performance timeframes and standard documentation.
The guidelines for HAFA are detailed further in the documents listed below.
MHA Handbook & Guidance | Annual Servicer Certification | Loan Reporting Documents | HAFA Matrix | MHA Compensation Matrix |IRS Guidance
MHA Handbook and Guidance
MHA Handbook and Guidance
The MHA Handbook is a consolidated reference guide outlining the requirements and guidelines for the Making Home Affordable (MHA) Program for non-GSE mortgages. The current version of the MHA Handbook replaces and supersedes all effective guidance contained in Supplemental Directives (SDs) and related frequently asked questions (FAQs); to the extent guidance is not effective as of the date of the of the current version of the MHA Handbook such guidance is not replaced and superseded. Previous SDs can now be found in the Archives tab on the Program Guidance page.
Making Home Affordable Handbook v4.4 - The MHA Handbook will be updated periodically to include additional guidance on related programs.
Access the MHA Handbook on AllRegs - Open to subscribing and non-subscribing AllRegs customers.
Please note: There may be a time delay for new MHA Handbook publication updates to appear in the AllRegs Library.
Supplemental Directives listed below are not incorporated, unless otherwise stated, in the current version of the MHA Handbook.
Annual Servicer Certification
Loan Reporting Documents
Servicing Transfer Data Dictionary - 04/28/2014 Release
The catalogue of all data elements and associated metadata for servicing transfers, including the names, definitions, allowable values, and data types. It also defines the functional areas where the data elements are being used.
(Last Updated: January 24, 2014
HAMP Reporting Tool User Guide
This User Guide provides comprehensive guidance on HAMP reporting. To access the Guide: 1) Click the link above; 2) Log in using your secure ID and password; 3) Navigate to the Support Tab.
HAFA Data Dictionary - 04/28/2014 Release
The catalogue of all data elements and associated metadata for the program, including the names, definitions, allowable values, and data types. It also defines the functional areas where the data elements are being used.
(Last Updated: 02/25/2014
This document provides an example of how the servicers' HAFA policies could be described.
MHA Compensation Matrix
This matrix provides a summary of servicer, investor, and borrower compensation by program. Frequency, payee/beneficiary, amounts, and timing are provided, as well as the data attributes used for each calculation.
For a complete listing of all MHA-related rulings, please visit the IRS website.
Dodd-Frank Certification - English
Dodd-Frank Certification - Spanish
To the extent servicers are not using the Request for Mortgage Assistance or Hardship Affidavit (each of which incorporates the certification under the Dodd-Frank Act), servicers must use this form to obtain certification from each borrower in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
(Last Updated: October 26, 2011
Non-Owner Occupant Certification
Borrowers who wish to request HAFA relocation assistance on behalf of non-owner occupants must ensure this certification is executed by each eligible non-owner occupant that is to receive relocation assistance and that this certification is delivered to the servicer. Servicers must notify borrowers of the availability of relocation assistance.
(Last Updated: July 13, 2012
MHA Third Party Authorization Form
Borrowers should use the form to provide authorization to third parties including but not limited to: the MHA Support Centers (HSC and MHA Help), attorneys, housing counselors, non-borrower family members, servicers, Housing Finance Agencies and any other non-borrower individuals or groups assisting the borrower with their loan modification, to provide and discuss the borrowers’ personal information. Servicers, subject to applicable law, must accept the form.
(Last Updated: January 22, 2014
As described in SD 12-07, servicers must use this document on and after February 1, 2013 and may begin using this document immediately.
(Last Updated: December 19, 2012
Short Sale Notice
As described in SD 12-07, servicers may begin to use this Short Sale Notice immediately. Effective February 1, 2013, this document will replace the Short Sale Agreement.
Short Sale Agreement
As described in SD 12-07, effective February 1, 2013, this document will no longer be effective or used in HAFA transactions.
Acknowledgment of Request for Short Sale
As described in SD 12-07, servicers may begin using this document immediately. Effective February 1, 2013, this document will replace the Request for Approval of Short Sale, Alternative Request for Approval of Short Sale and Alternative Request for Approval of Short Sale (Non-Profit Purchaser).
Deed-in-lieu of Foreclosure Agreement
As described in SD 12-07, servicers may begin using this document immediately and it will replace the current version of the Deed-in-lieu of Foreclosure Agreement effective February 1, 2013.
Deed-in-lieu of Foreclosure Agreement
This document incorporates guidance attributable to Supplemental Directives 12-02 and 12-05. Effective February 1, 2013 this document will be replaced by the updated Deed-in-lieu of Foreclosure Agreement as described above.
(Last Updated: August 7, 2012