The state’s website is well done, he says. “But the technology piece can definitely be a barrier.” In addition to establishing an email address, applicants may need to upload documents using their cellphones, he says. Tenfold generally tries to identify family members or others who can help. Applicants must already have fallen behind on their payments to qualify for help from HAF, Capitao says. However, some borrowers have been reaching out for help from the fund before they get into trouble. “Most of them don’t want to get to the point where they’re actually late unless they have to and there’s no other way,” he says In those cases, counselors at Tenfold look for alternatives that can help borrowers stay current, Capitao says. They may be coping with rising prices for food and energy while living on a fixed income. In those cases, counselors may connect borrowers to food banks and utility assistance programs. “Sometimes that conversation leads to questions, like ‘Have you thought about a part-time job or a roommate?’” he says. In the Borrower’s Corner Because of the program’s slow pace so far, there is a risk that borrowers could wind up in foreclosure even as they are applying for aid, Mancini says. The Federal Housing Administration allows servicers to pause foreclosure when a state program notifies the servicer of a pending HAF application, Mancini notes. But that notification does not arrive until the state has done an initial review, which still takes time. States have established processes to expedite reviews for people in those situations, she says. But the results have been uneven. “We are not at all confident that the state programs are handling it sufficiently,” she says. And people could fall through the cracks for other reasons, she says. They may not know about HAF, may run into technical problems while applying or may be getting set for foreclosure before the state has done its initial review. Servicers can help by identifying borrowers in need and ensuring that the HAF application process moves as quickly as possible, Mancini says. “We need every effort to be made to get people approved.” Helping Reverse continued from page 21 22 REVERSE MORTGAGE / SEPTEMBER–OCTOBER 2022
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