Fannie and Freddie issue guidance implementing foreclosure hold for HAF applicants

Ballard Spahr LLP
Contact

Ballard Spahr LLP

As previously reported, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will require servicers to suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance from the Treasury Department’s Homeowner Assistance Fund (HAF).

Fannie Mae and Freddie Mac have issued guidance documents implementing this requirement in Updated Lender Letter 2021-01 and Bulletin 2022-8, respectively.  According to the guidance documents, effective immediately, servicers must delay/suspend initiating any judicial or non-judicial foreclosure, moving for a foreclosure judgment or order of sale, or executing a foreclosure sale, for up to 60 days if:

  • The servicer has been notified that the borrower has applied for assistance under HAF;
  • The servicer has sufficient time to delay initiation of the foreclosure process or moving for a foreclosure judgment or order of sale;
  • The servicer, in the case of a foreclosure sale, is notified at least 7 days before the sale; and
  • Any foreclosure proceeding or execution of a foreclosure sale can be delayed without dismissal of the action.

The guidance documents further note that if a servicer determines that it did not have sufficient time to delay initiation of the foreclosure process or moving for a foreclosure judgment or order of sale, the servicer must document in the loan file why it was unable to do so.

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Ballard Spahr LLP | Attorney Advertising

Written by:

Ballard Spahr LLP
Contact
more
less

Ballard Spahr LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.