Additional Flexibility Supports Your Work with HFAs and HUD
September 12, 2011
Freddie Mac is committed to the efforts of state Housing Finance Agencies (HFAs) and the Department of Housing and Urban Development (HUD) to provide homeowners with mortgage payment relief.
Freddie Mac Servicers are reminded that they must interact with and accept funds on behalf of borrowers participating in HUD's Emergency Homeowners' Loan Program (EHLP) and state HFAs' Hardest Hit Fund (HHF) mortgage reinstatement and unemployment assistance programs.
To support this work to assist at-risk borrowers, effective immediately, our September 12 Single-Family Seller/Servicer Guide (Guide) Bulletin 2011-16 revises our requirements for working with these agencies as follows:
HFAs' mortgage reinstatement and unemployment assistance programs under HHF
You may suspend a foreclosure referral or sale for a period exceeding 45 days if it is needed to facilitate the processing of mortgage assistance and receipt of funds, provided that you follow up with the HFA on a regular basis to determine whether the borrower is still eligible for assistance and when funds are expected. Further, you are reminded that you must comply with any state laws that require you to suspend a foreclosure for a period exceeding 45 days.
You may suspend foreclosure proceedings prior to being notified that a borrower has been approved for assistance through EHLP as needed, in order to comply with state law or your Memorandum of Understanding with HUD to participate in EHLP.
To fully understand our requirements for interacting with these agencies, it is important that you carefully review the following:
- Guide Bulletin 2011-16
- EHLP Guide Bulletin 2011-12
- Additional information on the EHLP program available on the HUD EHLP website
- HFA mortgage reinstatement and unemployment assistance program Guide Bulletin 2010-25 and Guide Bulletin 2011-5
- Our HFA mortgage assistance programs website and updated Q&A