VA Secretary Joined Other Leaders Seek To Reduce Mortgage Hardships
Denis McDonough, VA Secretary, joined Housing and Urban Development Secretary Marcia L. Fudge, Agriculture Secretary Tom Vilsack, and Treasury Secretary Janet L. Yellen in demanding that companies that service federally backed mortgages take all necessary steps to avoid hardship or foreclosure while help is available.
The VA Secretary and the other three secretaries asked that mortgage providers put a pause on actions against homeowners behind on mortgage payments while Homeowners’ Assistance funds are available. These funds are provided through the American Rescue plan which awarded every US state millions of dollars to develop programs that will help eligible homeowners.
“We are strongly urging all servicers of federally backed mortgages to pause foreclosure proceedings when they are notified by a HAF program administration of a pending HAF application to avoid unnecessary harm to vulnerable homeowners,” they wrote. “During any such pause, we encourage homeowners and servicers to continue working together on loss mitigation options to ensure vulnerable homeowners eligible for assistance are able to choose the best path to staying in their homes and fully utilize available resources.”
The Homeowner Assistance Fund (HAF) is a $9.961 billion federal program that assists homeowners who have fallen behind on their mortgages or other housing-related expenses as a result of COVID-19’s The Homeowner Assistance Fund (HAF) is a federal program worth $9.961 billion that helps homeowners who have fallen behind on their mortgages or other housing-related expenses as a result of COVID-19’s effects. The HAF program is maintained by the states, territories, and tribes, and is overseen by the Treasury Department.