It has been found that HAF assistance extended to a broader range of economically vulnerable and traditionally underserved homeowners than prior federal mortgage assistance and foreclosure prevention programs.įitch Ratings recently reported that from Q3 2022 to Q4 2022, bank and nonbank servicers reported a continuing decrease in loan modifications quarter over quarter, reaching 25% from 31%, and 16.5% from 17%, respectively. HAF’s purpose was to prevent mortgage delinquencies and defaults, foreclosures, loss of utilities or home energy services, and displacement of homeowners experiencing financial hardship after January 21, 2020. On March 11, 2021, President Joe Biden signed The American Rescue Plan Act of 2021 into law, which established the HAF, which was to provide up to $9.961 billion in financial relief for struggling homeowners nationwide. territories, and Tribal governments during the time of the pandemic. A recent white paper from Legal League 100’s Special Initiatives Working Group (SIWG), entitled The Homeowner Assistance Fund: The Current Status of the HAF Program in Select Jurisdictions, examined how the Homeowner Assistance Fund (HAF) provided relief for homeowners in U.S. And since March 2020, mortgage servicers have provided forbearance opportunities to approximately 7.9 million borrowers.Ĭollaboration between the servicing industry and government agencies proved to be successful for many Americans in providing home retention solutions during the time of the pandemic. The Mortgage Bankers Association’s (MBA) latest Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by two basis points from 0.51% of servicers’ portfolio volume in April 2023 to 0.49% as of May 31, 2023.Īccording to the MBA, an estimated 245,000 U.S. Forces are pushing and pulling at the housing industry from multiple angles as buyers struggle with affordability issues amid ongoing fears of an economic recession. ![]() When assessing the state of the mortgage servicing space midway through 2023, several factors come into play. This piece originally appeared in the July 2023 edition of MortgagePoint magazine, online now.
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