Chase Home Affordable Foreclosure Alternative (HAFA) Matrix

Transcription

1 Chase Home Affordable Foreclosure Alternative (HAFA) Matrix All servicers that have signed agreements with the U.S. Department of the Treasury (Treasury) to participate in the Home Affordable Modification Program (HAMP) must consider non HAMP eligible customers for other foreclosure prevention options, including Home Affordable Foreclosure Alternatives (HAFA) which includes short s a l e a n d d e e d -in-lieu. Chase currently does not offer the option to pursue HAFA deed-in-lieus. However, each servicer has some discretion in determining additional customer eligibility criteria and certain program rules. In order to assist customers and their representatives in understanding any unique components of a servicer s HAFA Policy, Treasury has developed this HAFA Matrix. The summary information in this matrix is prepared solely by Chase and does not represent any determination by Treasury as to the servicer's compliance with Treasury's policies and guidance for HAFA. Treasury does not endorse any language or policy described in this matrix. Any questions regarding the information contained in this matrix should be directed solely to Chase. Updated July 2015 WHY SHOULD A CUSTOMER CONSIDER A HAFA SHORT SALE? If the customer owes more on the mortgage than the property is worth and is unable to keep up with the mortgage payments, a HAFA short sale may: Help the customer avoid foreclosure. Allow the customer to owe nothing more on the mortgage once the home is sold. Provide financial assistance of $10,000 to help with relocation expenses for the person occupying the property as a primary residence if they are required to vacate as a condition of the HAFA short sale. ELIGIBILITY HAFA Basic Eligibility The loan must be owned by Chase or by a private investor and serviced by Chase. The home secured by the mortgage is one of the following: o Currently Owner-Occupied o Currently Tenant-Occupied o Currently Vacant The property securing the mortgage is not condemned. The loan is a first lien mortgage that was originated on or before January 1, The mortgage is delinquent or default is reasonably foreseeable. The current unpaid principal balance not including arrearages is no more than: $729,750 for a single family property $934,200 for 2 units $1,129,250 for 3 units $1,403,400 for 4 units 1

2 ELIGIBILITY (Cont.) Note: The mortgage loan is secured by a one- to four-unit property The customer must be a natural person The customer must have a documented financial hardship, evidenced by a signed Hardship Affidavit or Request for Mortgage Assistance (RMA), in which the customer has represented that he or she does not have sufficient liquid assets to make the monthly mortgage payment. o For example, service members citing a Permanent Change of Station order as the basis for their financial hardship when requesting HAFA are eligible even if his or her income has not decreased, so long as the service member does not have sufficient liquid assets to make his or her monthly mortgage payments. If a customer was not previously considered for Home Affordable Modification Program (HAMP) and requests a short sale, Chase must evaluate the customer for HAFA. If, as part of this evaluation, Chase determines the customer also meets the HAMP eligibility requirements, Chase must notify the customer of the availability of HAMP and allow the customer 14 days from the date of the notification to contact Chase by verbal or written communication and request consideration for HAMP. Subordinate Liens o It is the responsibility of the customer to deliver clear marketable title to the purchaser or investor and to work with listing broker, settlement agent and/or lien holders to clear title impediments. o Chase may negotiate with subordinate lien holders on behalf of the customer upon receiving authorization from the customer. o Prior to releasing any funds to subordinate mortgage/lien holder(s), Chase through its agent must obtain written commitment from the subordinate lien holder that it will release the customer from all claims and liability relating to the subordinate lien in exchange for receiving the agreed upon payoff amount. Mortgage Insurance o A mortgage loan with mortgage insurance does not qualify for HAFA unless the mortgage insurer waives any right to collect additional sums from the customer (cash contribution or a promissory note). Foreclosure o If a foreclosure sale is scheduled within 60 days of the application date or has already occurred, the loan is not eligible for a HAFA short sale. Resale Restrictions o The buyer may not sell the property within 30 calendar days 2

3 ELIGIBILITY (Cont.) of closing, and for the period between 31 and 90 calendar days of the closing, the buyer is prohibited from selling the property for a gross sales price greater than 120% of the HAFA short sale price. o These Resale Restrictions must be included in the HAFA sales contract. Preapproved Short Sale Hardship Affidavit or Request for Mortgage Assistance (RMA) Evidence of occupancy and Dodd Frank Certification if the customer is requesting relocation incentive compensation for the customer or, for a rental property, for the tenant occupying the rental property as a principal residence o Chase may request one or more of the following to confirm principal residence: tax return, tax bill, utility bill, driver s license, resident card, lease agreement or bank statements. DOCUMENTATION VALUATIONS Subordinate lien status documentation o Payoff quote from subordinate lien holder o Full release of the lien Financial documentation, if required by the private investor or mortgage insurance company Third-Party Authorization, if applicable HAFA Affidavit Request for Short Sale Approval when Submitting an Executed Sales Contract that Has Not Been Pre-Approved Same documents as preapproved short sale plus: Signed offer to purchase contract with all related addenda Buyer s documentation of funds or pre-approval or commitment letter on letterhead from a lender Active listing agreement between customer and real estate agent HUD-1 Form or Closing Disclosure Financial documentation, if required by the private investor or mortgage insurance company RMA 4506-T or 4506-EZ Dodd Frank Certification Imminent Default (less than 60 days past due)-d o c u m e n t s l i s t e d a b o v e plus: Financial documentation, i.e. the two most recent pay stubs for each customer and two most recent bank statements for all accounts listed on the RMA Establishing Property Value Chase will, independently of the customer and any other parties to the transaction, assess the current value of the property. The value may be based on either: 1. An appraisal 2. One or more Broker Price Opinions (BPO) 3

4 VALUATIONS (Cont.) Disputed Valuations 3. The customer or their agent must gather supporting documentation including: o o o Customer name and subject property address A summary detailing the concern regarding the property valuation A copy of the active listing agreement between the customer and his or her real estate agent A recent (less than one month old) Comparative Market Analysis of the property, with interior and exterior photos o At least 5 comparables 4. The customer or their agent should contact the assigned Short Sale Negotiator or Customer Assistance Specialist (CAS) to request a review of the property value and submit documentation. 5. Chase will be unable to review a customer for a short sale if the customer does not grant Chase access to the property for evaluation upon request. Price Reduction Review During Marketing Period List price reviews initiated by the customer or the customer s agent during the 120-day marketing period are subject to Chase approval- Chase agents will contact the customer or the customer s agent every 30 days to provide updates and suggestions about the list price. Chase agents will contact the customer every 10 days until an underwriting decision has been made. MAXIMUM AMOUNT OF SALE PROCEEDS PAID TO SUBORDINATE MORTGAGE LIEN HOLDERS (AGGREGATE CAP) Chase on behalf of the investor, will authorize the settlement agent to allow a portion of the gross sale proceeds up to $12,000 to be used as payment(s) to subordinate mortgage/lien holder(s) in exchange for a lien release and full release of customer liability. 4

5 PAYMENTS DURING MARKETING PERIOD Customers are not required to make payments during the marketing period. AVERAGE TIMELINES The customer must have submitted a request (phone, mail, fax or ) for consideration for a short sale or, before pre-approval of a HAFA short sale, written request for approval of an executed sales contract on or before December 31, 2016 and the transaction closing date must be on or before September 30, Customer submission of required income/eligibility documentation: Minimum of 30 days Acknowledgment of receipt of request for short sale: 10 business days. Eligibility review to issuance of short sale notice: 30 calendar days. Marketing period (from the date the Short Sale Notice is mailed to the customer): 120 Days. Customer Submission of purchase contract: Within 3 business days following the receipt of an executed purchase contract, the customer or customer s agent should deliver to Chase executed purchase contract and other offer documents. Chase s approval of purchase contract: 30 calendar days or 10 calendar days if consistent with pre-approved terms. Customer s submission of Hardship Affidavit or other offer documentation: 14 calendar days Escrow and closing: Chase generally requires closing to take place 45 days from approval CONTACT INFORMATION Customer Assistance Specialist Short Sale Department Short Sale Department Fax: HOPE Hotline Number HOPE 5

6 SERVICER DISCLAIMER The matrix is a summary of the requirements related to Treasury s HAFA program for mortgage loans owned by Chase or by a private investor and serviced by Chase. Individual short sales are subject to all conditions of the HAFA program and Chase s policies related to the HAFA program. 6