Wells Fargo HAFA Matrix

8/3/2019 Wells Fargo HAFA Matrix

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All servicers that have signed agreements with the U.S. Department o the Treasury (Treasury) to participate in theHome Aordable Modication Program (HAMP) must consider eligible borrowers who do not qualiy or HAMPor other oreclosure prevention options including Home Aordable Foreclosure Alternatives (HAFA) whichincludes short sale and deed-in-lieu. However, each servicer has some discretion in determining additional eligibilicriteria and certain program rules. In order to assist borrowers and their representatives in understanding anyunique components o a servicers HAFA Policy, Treasury, has developed this HAFA Matrix.

The summary inormation in this matrix is prepared solely by Wells Fargo and does not represent anydetermination by the Treasury as to the servicer's compliance with the Treasury's policies and guidance or HAFA.Treasury does not endorse any language or policy described in this matrix. Any questions regarding the inormatiocontained in this matrix should be directed solely to Wells Fargo.

Wells Fargo Home Aordable Foreclosure Alternatives

(HAFA) Matrix

Eligibilityrequirements

Treasury's guidelines state that a loan meets the basic eligibility criteria i the servicerveries that all o the ollowing conditions are met:

The property is the borrowers primary residence

The mortgage is a rst lien originated on or beore January 1, 2009

The mortgage is delinquent or deault is reasonable oreseeable

The current unpaid principal balance is less than or equal to:

$729,750 or a one-unit property

$934,200 or a two-unit property

$1,129,250 or a three-unit property

$1,403,400 or a our-unit property

The borrowers total monthly mortgage payment exceeds 31% o their gross income(only applicable i required by investor or insurer.)

The property is not vacant or condemned. (The property may be vacant providingcertain conditions have been met and can be validated by independent third partydocumentation.)

Additional important items to note:Treasury requires that a borrower have a documented nancial hardship, evidenced by asigned Hardship Afdavit or RMA, wherein the borrower has represented that he or she doenot have sufcient liquid assets to make the monthly mortgage payments.

I a borrower is current or less than 60 days delinquent and would like to be considered, themay still be eligible pending urther review o their nancial situation.


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Loans with a scheduled oreclosure date may still be considered or HAFA depending on thtiming o the scheduled oreclosure sale.

Please note that in addition to Treasurys standard HAFA eligibility requirements, WellsFargo must adhere to investor and mortgage insurance guidelines as well as all applicablelaws and regulations

DocumentationrequirementsDocuments required prior to Short Sale Agreement (SSA): Hardship Afdavit/RMA

Dodd Frank Certication

Conditional items based on investor requirements, imminent deault, and/or otherpotential actors, or example:

Evidence o residency in subject property.

Financial inormation (paystubs, bank statements, etc)

Documentation o hardship when required

Documents required i a purchase ofer has been made:Same documents as above, plus:

Alternative Request or Short Sale (i no SSA exists) or Request or Short Sale (i SSA exist

Purchase Agreement and Estimated HUD-1

Proo o buyer unds or buyers pre approval or commitment letter on lender letterhead

Second lien holder's written approval and agreement not to pursue deciency balance

Other documents per investor and insurer request

Valuations Establishing property valueValuation is obtained based on investor guidelines and typically consists o an interior BPOor ull interior appraisal. The valuation must be less than 90 days old at the time the ShortSale Agreement is issued.

Disputed valuationsWells Fargo ollows both its service provider and investor guidelines when determining whinormation is needed to dispute a value. A minimum o three sold comparables must besubmitted. These must be comparable to the subject property's square ootage, amenities,age and location, and must have closed within six months prior to the eective date o thedisputed valuation. I the dispute is based on repairs, an estimate o repairs prepared by alicensed contractor is required.

Periodic reassessment o valueWe order a new valuation every 90 days during the HAFA process. I the new value comesin lower, we will reduce the MNSP accordingly. I the new value comes in higher than theprior value, we will not change the MNSP.

Payments duringmarketing period

None required


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