HAFA Matrix

PennyMac 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 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. Each servicer, however, has some discretion in determining additional eligibility criteria and certain program rules.

To assist borrowers and their representatives in understanding any unique components of a servicer’s HAFA Policy, Treasury has developed a 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: July 10, 2015

Eligibility Requirements
  • The servicer of the loan participates in HAMP and HAFA.
  • The mortgage was originated before January 1, 2009 and is not made to or owned by a corporation, partnership, limited liability company, or other business entities.
  • 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 manufactured home including the land.
  • Property is not condemned or in uninhabitable condition.
  • Borrower must have a documented financial hardship.
  • Borrowers who are in bankruptcy are eligible with bankruptcy-court approval.
  • Borrower must deliver clear and marketable title (PennyMac may work with the borrower to clear subordinate liens).
  • Borrower has not been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.
  • Loans with mortgage insurance require approval from the insurer.
  • Some loans may require investor approval.
  • 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
Documentation Requirements
Documentation Required from the Borrower Upon Confirmation of Eligibility includes:

Signed Short Sale Agreement (SSA)

  • Hardship Affidavit or Request for Modification and Affidavit (RMA) and Dodd-Frank Certification
An Existing Offer Submitted Using an Alternative Request for Approval of Short Sale (Alternative RASS)

This is the same documentation as the Short Sale Agreement (SSA) plus:

  • Accepted purchase contract
  • Other documents as requested by PennyMac
Valuations
Establishing Property Value

Depending upon state requirements, PennyMac will order one interior broker price opinion (BPO) and an appraisal desk review for the reconciled property value. Additional valuations may be required in certain circumstances.

Disputed Valuations

A dispute with the valuation of the property will be escalated to a member of management within PennyMac’s Property Resolution department. PennyMac will review any information submitted by the borrower and/or their authorized 3rd party representative(s) and PennyMac’s response will be communicated to the borrower and/or their authorized 3rd party representative(s) within 30 days.

Information to be provided to PennyMac may include:

  • BPO
  • Appraisal
  • CMA (Comparative Market Analysis)

Borrowers and/or their authorized 3rd party representative(s) may contact their assigned Loan Resolution Specialist by phone or e-mail. They may also call (866) 573-9564 or e-mail propertyresolution@pnmac.com to discuss an adjustment to PennyMac’s valuation.

PennyMac will not reimburse any party for the cost of any appraisals, BPO’s, or other valuation products provided to PennyMac.

Price Reduction Review During Marketing Period

The Loan Resolution Specialist will work with the borrower and/or their authorized third party representatives(s) to assess the list price during the marketing period. If there is no purchase offer at the listing price after 60 days, borrower should consider deed-in-lieu of foreclosure.

Payments During Marketing Period

Not required. However, missed payments will be reported to the major credit reporting agencies as required by the Fair Credit Reporting Act. To learn more about credit scores, please visit the Federal Trade Commission.

Relocation Incentive

A borrower, tenant or other non-borrower occupant who occupies the property as a principal residence and is required to vacate as a condition of the HAFA short sale or deed-in-lieu of foreclosure (DIL) may be eligible to receive relocation assistance of $10,000 at closing. To establish eligibility, PennyMac must receive satisfactory evidence of occupancy, an executed Dodd-Frank Certification(s) and, if applicable, a Non-Owner Occupant Certification.

In the case of a rental property occupied by a tenant or other non-borrower occupant, the HAFA relocation assistance will be paid to the tenant or other non-borrower occupant (assuming the conditions of such payment are satisfied) and may not be reduced to pay any costs and expenses of the tenant or other non-borrower occupant; no portion of the $10,000 may be retained by a borrower.

Deed-in-Lieu of Foreclosure Policy

Deed-In-Lieu (DIL) is another option to avoid foreclosure if the customer cannot afford the mortgage payments. With a deed in lieu of foreclosure, the customer voluntarily transfers ownership of the house and all property secured by the loan to the lender to satisfy the total amount due on the mortgage. A DIL must be approved by the owner of the loan as well as any other lien holders, such as a home equity loan or home equity line of credit lender.

DIL may be considered in cases where the property does not generate an acceptable short sale.

Foreclosure

PennyMac will make every attempt to review the borrower for some form of a modification or foreclosure alternative such as short sale or deed in lieu before a foreclosure is initiated. If, however, the customer is in foreclosure, during the HAFA process, PennyMac will not complete a foreclosure sale:

  • While determining the borrower’s eligibility and qualification for HAFA
  • Until 5 days after PennyMac sends the borrower notification that they are not eligible or their eligibility has expired
  • While the terms of a pre-approved HAFA short sale are effective, or
  • Pending transfer of ownership for a PennyMac-approved sales contract
Average Timelines
Timeline
Action
Average Time
1.
The customer calls and PennyMac verbally prequalifies them over the phone.
Average time: Immediately
2.
PennyMac issues an application package via 2-day FedEx or e-mail.
Average time: 24 hours after all necessary information has been received.
3.
Customer returns the application package.
Average time: 14 days
4.
Eligibility Review and Order Property Valuation(if Property Valuation has not already been completed)
Average time: 7 days
5.
Marketing Period
Average time: Between 30-120 days
6.
Submission of purchase contracts from the borrower
Average time: 24 hours of receipt from potential buyer
7.
PennyMac approval, counter offer, or decline of purchase contract
Average time: 48 hours of receipt
8.
Escrow and Closing
Average time: 30-60 days
Contact Information
General HAFA questions before short-sale request

Call Customer Service: (866) 545-9070

Upon receiving your package, customer will be assigned a single point of contact. That individual will assist the customer throughout the Short Sale process. The single point of contact will be responsible for valuation appeals, transaction status, and escalation of complaints and concerns.

Point of Contact Information

Call: Toll Free (877) 554-0376
M – F: 6:00 a.m. – 6:00 p.m. Pacific
Sa: 7:00 a.m. – 11:00 a.m. Pacific
Website: PennyMacUSA.com
Email: propertyresolution@pnmac.com Fax: Toll Free (866) 577-7205

Escalation Contact

Customer Escalation Specialist
PennyMac Loan Services, LLC
Call: Toll Free (866) 545-9070
Email: hampesc@pnmac.com

Payments

PennyMac Loan Services
PO Box 30597
Los Angeles, CA 90030-0597

Correspondence

PennyMac Loan Services
PO Box 514387
Los Angeles, CA 90051
Notices of error or information requests must be mailed to this address.