The Owners Help Fund (HAF) — a program designed to supply monetary assist to householders impacted by the COVID-19 pandemic — has saved greater than 300,000 householders of their properties by curing defaults and maintaining them out of foreclosures, in keeping with information launched this week by the U.S. Division of the Treasury.
“As of March 31, HAF applications made roughly $3.7 billion in funds to greater than 318,000 householders vulnerable to foreclosures,” the Treasury Division stated in an announcement. “Within the first quarter of 2023 alone, HAF applications distributed $1.2 billion in help to households – a 50% improve over the fourth quarter of 2022 – demonstrating this system is continuous to scale quickly as designed.”
The info additionally reveals that 14 states and two U.S. territories have expended over 50% of their HAF funds, excluding administrative bills. As well as, the funding has reached a larger variety of economically weak folks than it did previous to the federal mortgage reduction efforts.
“As of March 2023, 49% of HAF help was delivered to very low-income householders, outlined as householders incomes lower than 50% of the realm median revenue,” the Treasury stated. “Demographically, 35% of house owners assisted self-identified as Black, 23% self-identified as Hispanic/Latino, and 59% self-identified as feminine.”
The Treasury Division is dedicated to making sure that the rest of the funds will likely be distributed, in keeping with Wally Adeyemo, deputy secretary of the Treasury.
“The House owner Help Fund has helped hold lots of of hundreds of households of their properties,” Adeyemo stated. “As state applications assess their remaining HAF funds, the Treasury Division will proceed working with recipients to make sure these funds are swiftly delivered to householders most in want.”
Handed as a part of the American Rescue Plan Act in early 2021, the HAF program is designed to assist householders who’ve been financially impacted by COVID-19 pay their mortgage or different residence bills. A $10 billion allocation was made for this system, however mortgage servicers beforehand acknowledged that spreading consciousness about this system has been a problem.
This system is also available for reverse mortgage debtors. A requirement of a government-sponsored Dwelling Fairness Conversion Mortgage (HECM) is that the house owner hold their residence in good restore whereas paying any relevant property taxes, householders insurance coverage and householders affiliation (HOA) charges.
Reverse mortgage debtors who could have fallen behind on such funds are eligible to obtain HAF funds to assist cowl the bills and hold them out of foreclosures.