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 eligible borrowers who do not qualify for HAMP for other foreclosure prevention options including Home Affordable Foreclosure Alternatives (HAFA) which includes short sale and deed-in-lieu. However, each servicer has some discretion in determining additional eligibility criteria and certain program rules. In order to assist borrowers 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 PennyMac and does not represent any determination by the Treasury as to the servicer's compliance with the 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 PennyMac.
Last Updated: March 19th, 2012
- The servicer of the loan participates in HAMP
- The loan is a first lien mortgage
- The loan is in default or default is imminent (imminent default is evaluated by PennyMac’s proprietary model)
- The property is 1-4 units, cooperative, condominium, or manufacturing homes including the land
- Borrowers who are in bankruptcy are eligible
- Borrower must deliver clear and marketable title (PennyMac will work with the borrower to clear subordinate liens)
- Loans with mortgage insurance require approval from the insurer
- The current Unpaid Principal Balance (UPB) of the mortgage loan not including arrearages is not greater than:
1 unit: $729,750
2 units: $934,200
3 units: $1,129,250
4 units: $1,403,400 - If the property is owner occupied, the borrower is eligible to receive $3,000 in relocation assistance at closing
- If the property is tenant occupied, the tenant is eligible to receive $3,000 in relocation assistance at closing
Documentation Required from the Borrower:
Preapproved Short Sale Agreement (SSA)
- Hardship Affidavit or Request for Modification and Affidavit (RMA)
- Evidence of occupancy
- Dodd Frank Certification
- Sign and return the Approval Letter
An Existing Offer Submitted Using an Alternative Request for Approval of Short Sale (Alternative RASS)
This is the same document as a Short Sale Agreement (SSA) plus:
- Accepted purchase contract
Establishing Property Value –
We will have one interior broker price opinion (BPO) and an appraisal desk review for the reconciled property value. Additional appraisal may be required in certain circumstances.
Disputed Valuations –
The borrower may dispute the property value following the requirements below:
- Contact the Loan Resolution Specialist assigned to the borrower and submit one of the following:
- A real estate property valuation, such as BPO or appraisal, conducted within the past 6 months.
- Evidence of 3 proximate and comparable closed sales not already considered by the PennyMac ordered valuation product. Include the address information so PennyMac can confirm the sale data through online resources such as Trulia, Zillow and Real Quest.
- PennyMac will
- Order a field review of the borrower supplied appraisal from an approved PennyMac vendor, if the borrower provided an interior appraisal.
- Order an interior appraisal from an approved PennyMac vendor, if the borrower provided any other supporting documentation other than a full interior appraisal.
- The results should be completed within 21 days if the appraisal is completed on a timely basis.
Price Reduction Review During Marketing Period – There is no list price review or reduction strategy. If there is no purchase offer at the listing price after 60 days, borrower should consider deed-in-lieu of foreclosure.
Deed-In-Lieu should be considered in all cases where the property does generate an acceptable short sale. The borrower may initiate a deed-in-lieu of foreclosure on the initial day, but no later than 90 days after the Short Sale Agreement (SSA) is assigned.
| Timeline | Action | Average Time |
|---|---|---|
| 1 | The borrower calls and PennyMac verbally prequalifies them over the phone | Immediately |
| 2 | PennyMac issues a welcome package | 24 hours |
| 3 | Borrower returns the welcome package | 7 days |
| 4 | Eligibility Review and Order Property Valuation | 7 days |
| 5 | Marketing Period | No longer than 30 days |
| 6 | Submission of purchase contracts from the borrower | 24 hours |
| 7 | PennyMac approval of purchase contract | 24 hours |
| 8 | Escrow and Closing | 45 days |
General HAFA questions:
Call Customer Service: (866) 545 9060
Upon receiving your package, you will be assigned a single point of contact. That individual will assist you throughout the Short Sale process. The single point of contact will be responsible for valuation appeals, transaction status and escalation of complaints concerns.
Point of Contact Information:
Call: Toll Free (877) 554-0376
M – F: 7:00am – 6:00pm Pacific
Sa: 7:00am – 11:00 am Pacific
Website: PennyMacUSA.com
email: propertyresolution@pnmac.com
Fax: Toll Free (866) 577-7205
Escalation Contact:
Mirella Hernandez
Customer Escalation Specialist
PennyMac Loan Services, LLC.
Toll Free: (866) 545-9070 ext. 8402
mirella.hernandez@pnmac.com
Payments:
PennyMac Loan Services
P.O. Box 30597Los Angeles, CA 90030-0597
Correspondence
P.O. Box 514387
Los Angeles, CA 90051
