With this Announcement, Fannie Mae is introducing a new loss mitigation option that is designed to cure the delinquency on a first lien mortgage loan when a repayment plan is not feasible. This loss mitigation option, HomeSaver Advance (HSA), is the preferred option to a capitalization-only modification.

This Announcement describes the requirements related to this new loss mitigation option. The HSA allows the delinquency on mortgage loans meeting certain eligibility criteria that are securitized by Fannie Mae, including a Pooled from Portfolio (PFP) mortgage loan, as well as whole loans held in our portfolio, to be cured at an earlier stage. This option will also allow MBS mortgage loans to remain in MBS pools.

The intent of HSA is to allow a delinquent borrower, who is able to make future scheduled payments but is unable to pay past due amounts immediately, to cure the delinquency by entering into a new unsecured loan for the arrearage amount. HSA is documented by the execution of an unsecured promissory note.

Fannie Mae’s Servicing Guide, Part VII, Chapter 5, Loss Mitigation Alternatives, will be amended to include the HSA as a standard loss mitigation option. All previous HSA delegations are now null and void. Servicers are permitted to agree to an HSA without prior Fannie Mae or mortgage insurer approval, provided that the first lien mortgage loan, the borrower, and the terms of the HSA Loan Documents (as defined in the full Announcements ) conform to the guidelines included in this Announcement (Delegated HSA). In addition, servicers must ensure they have the ability to originate and administrate HSA loans in accordance with all of the requirements of this Announcement.

Note: This Announcement also allows for Non-Delegated HSA loans, whereby loans can be submitted to Fannie Mae for review. Furthermore, this Announcement supersedes the HSA Servicing Delegation that some servicers may have been granted.

To view the Announcement 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 500 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.