Data released this week show that the Homeowners Assistance Fund (HAF), a program aimed at providing financial assistance to homeowners affected by the COVID-19 pandemic, has defaulted. It says it keeps more than 300,000 homeowners in their homes by resolving property and protecting them from foreclosures.by U.S. Treasury Department.
“As of March 31, the HAF program has paid approximately $3.7 billion to more than 318,000 homeowners at risk of foreclosure,” the Treasury Department said in a statement. “In the first quarter of 2023 alone, the HAF program distributed $1.2 billion in aid to households, a 50% increase over the fourth quarter of 2022, and the program is rapidly growing as designed. It shows that it continues to grow.”
The data also show that 14 states and two US territories spend more than 50% of HAF funding, excluding administrative costs. What’s more, the money is reaching more economically vulnerable people than before the federal mortgage relief.
“As of March 2023, 49% of HAF assistance has been provided to ultra-low-income homeowners, defined as those homeowners earning less than 50% of the regional median income,” the Treasury Department said. “Demographically, 35% of homeowners identify as Black, 23% identify as Hispanic/Latino, and 59% identify as female. ”
Undersecretary of the Treasury Wally Adiemo said the Treasury Department is working to ensure that the remaining funds are distributed.
“The Homeowners Assistance Fund has helped hundreds of thousands of families stay in their homes,” Adiemo said. “As state programs evaluate remaining HAF funds, the Department of Treasury will continue to work with recipients to ensure that these funds are quickly delivered to homeowners who need them most.”
Passed as part of the American Relief Plan Act in early 2021, the HAF program will help homeowners financially impacted by COVID-19 pay mortgages and other housing costs. It is an object. A $10 billion allocation has been made for the program, but the mortgage servicer has previously said spreading awareness of the program is a challenge.
This program is also available to reverse mortgage borrowers. The government-sponsored Home Equity Convertible Mortgage (HECM) requirement is for homeowners to keep their home in good repair condition while paying applicable property taxes, homeowners insurance and Homeowners Association (HOA) fees. is to keep
A reverse mortgage borrower may have defaulted on such payments and is eligible to receive HAF funds to cover those costs and prevent foreclosure.