Servicing Guide

Published September 18, 2018

E-3.2-07: Impact of HFA Engagement (11/12/2014)

If an HFA notifies the servicer that a borrower has been approved for HFA assistance under unemployment mortgage assistance or a reinstatement program, the servicer must not refer the mortgage loan to foreclosure or conduct a scheduled foreclosure sale for 45 days.

The servicer may extend the suspension of foreclosure actions beyond 45 days, as necessary, to facilitate the processing of HHF program assistance, provided that

  • it continues to validate with the HFA that the borrower’s status has not changed,

  • the action is in compliance with its agreement with the HFA, and

  • it obtains Fannie Mae’s prior approval for any suspension beyond 60 days.

For additional information, see E-3.4-01, Suspending Foreclosure Proceedings for Workout Negotiations and D2-3.1-05, Interacting with Housing Finance Agencies and Hardest Hit Fund Programs.