The U.S. Treasury Department this week published Homeowner Assistance Fund (HAF) guidance that includes reverse mortgages on the list of eligible mortgage types that can receive federal assistance to help struggling homeowners stay in their homes.
The HAF program was established under the American Rescue Plan that was signed into law in March. States will use the HAF guidance to distribute nearly $10 billion to eligible homeowners, including reverse mortgage borrowers who are delinquent on their tax and/or insurance payments.
“This is very good news. NRMLA has worked very hard over the summer with various stakeholders to ensure that reverse mortgage borrowers who need help can qualify for these resources and stave off foreclosure,” says NRMLA President Steve Irwin.
The HAF website indicates that Treasury will soon open the HAF portal, through which states must submit their plans. The deadline for submission (or notification of a delayed submission) will be 14 days from the date the portal is made available.
NRMLA will continue to monitor these developments. In the meantime, if you have clients who need help, please instruct them to contact their servicer immediately for further instructions.