Vendors Are Gearing Up For HAFA
The U.S. Treasury department introduced HAFA last November in its Supplemental Directive 09-09 to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program. HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure used to avoid foreclosure on a loan eligible for modification under HAMP, or also when the borrower does not qualify for a trial period, does not successfully complete a trial period plan or misses at least two consecutive payments during a HAMP modification. Servicers participating in HAMP are also required to comply with HAFA. And technology is helping those servicers comply.
For example, IndiSoft LLC has updated its RxOffice platform to meet Home Affordable Foreclosure Alternatives requirements. Additionally, the company's new RxOffice Realtor portal was launched. RxOffice Realtor Portal allows Realtors to manage the explosion in short sale real estate transactions. Nearly one in four mortgages are underwater, according to First American Core Logic. In February 2010, short sales accounted for 17% of all residential real estate sales.
Using the RxOffice Realtor portal, Realtors are able to help struggling homeowners with graceful exit from their current unaffordable mortgage commitment with minimal damage to their ability to borrow in future. Realtors can use the portal for only $10 per listing, which includes case management, HAFA-compliant document preparations as well as work flow management. "It is important that we provide our clients with the essential tools that are relevant and allow them to be compliant with all of the changing regulations and program options," said Sanjeev Dahiwadkar, president and CEO of IndiSoft. "Our newly enhanced RxOffice platform will allow companies to continue to do business as usual without any interruption and leverage the increased number of program options for struggling homeowners."
RxOffice gathers the HAFA-required offer and settlement agent information, tracks the HAFA workflow and produces documents based on HAFA templates, such as the Request for Short Sale Approval, Alternative Request for Short Sale Approval and Short Sale Agreement (SSA).