Fannie Mae Lender Letter LL-2010-12
October 29th, 2010
Fannie Mae issued Lender Letter LL-2010-12 titled, Making Home Affordable: Interactions with Hardest-Hit Fund Unemployment and Reinstatement Programs.
Making Home Affordable: Interactions with Hardest-Hit Fund Unemployment and Reinstatement Programs
Introduction
The Treasury Department has awarded $7.6 billion in funding for innovative programs developed by state Housing Finance Agencies (HFAs) to prevent foreclosures and stabilize housing markets in 18 states and the District of Columbia. The Hardest-Hit Fund (HHF) programs include temporary relief for unemployed borrowers (HHF Unemployment Programs), and help for borrowers to become current on delinquent mortgage loans (HHF Reinstatement Programs). See financialstability.gov for a list of the participating HFAs and the program criteria.
On August 2, 2010, Treasury released Supplemental Directive 10-07, Making Home Affordable – Interactions with HFA Hardest-Hit Fund Programs, clarifying servicer roles and responsibilities regarding interactions between the HHF programs and the Making Home Affordable program.
Fannie Mae servicers must work closely with the HFAs as they assist borrowers in states with HHF programs. This Lender Letter provides guidance to servicers in connection with mortgage loans owned or guaranteed by Fannie Mae for HHF Unemployment Programs and HHF Reinstatement Programs.
Effective Date
Effective immediately, servicers must comply with this Lender Letter and accept funds from HFAs on mortgage loans held in Fannie Mae’s portfolio or in an MBS pool with the special servicing option or a shared-risk MBS pool for which Fannie Mae markets the acquired property.
To view the Lender Letter in its entirety, please click here
About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees and a handful of contractors performing services in the Midwest, to a national company with over 800 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.