Servicer Frequently Asked Questions (FAQ's)
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General Information
What is the Keep Your Home California program?
Is funding for the Keep Your Home California program limited?
How much money is available to assist eligible homeowners?
What types of foreclosure prevention programs were designed?
What is CalHFA MAC?
Eligibility
Who is eligible for the programs?
What types of properties are eligible for the programs?
Do homeowners need to be behind on their mortgage payments to be eligible for the Keep Your Home California programs?
Do homeowners need to have a CalHFA loan to qualify?
How does a homeowner receive KYHC program benefits?
How is eligibility determined for the Keep Your Home California programs?
What type of hardships will be considered?
If a homeowner qualifies for this assistance, do they have to pay it back?
Do homeowners need to pay a fee to take part in the Keep Your Home California programs?
Can homeowners apply for more than one program?
What will happen if a homeowner uses up all the funds provided and still does not have a job?
If a homeowner does not live in the house that secures the mortgage they would like to modify, is this mortgage eligible for a Keep Your Home California program?
If a renter is living in a home that is in default and is at risk of foreclosure, are they eligible for assistance through the Keep Your Home California programs?
If a homeowner has a mortgage on a duplex, lives in one unit and rents out the other unit, could they still be eligible for a Keep Your Home California program?
Is a Homeowner eligible to apply for KYHC assistance if they were offered a loan modification from their servicer but turned it down?
Where can I find additional information about the KYHC program?
Registration & Participation Process
Will California state and local agencies be pre-qualifying the homeowners?
Will servicers receive pre-qualified information packages from counselors for decisioning?
What types of program information will KYHC send to participating servicers during the transaction process?
What form of communication does KYHC plan to utilize to receive and send information?
What funds transfer mechanisms will CalHFA MAC utilize?
Will CalHFA MAC track program compliance conditions such as the examples below?
When KYHC program funds are depleted, who stops the flow of requests to servicers?
Will servicers be expected to implement all four of the KYHC programs at the same time?
Does homeowner eligibility criteria vary by KYHC program?
Are servicers required to offer a dollar for dollar matching contribution to participate in the KYHC program?
What should a servicer do if they want to register for one or more of the KYHC programs?
How much time will it take to get registered and begin participation in the program?
Will a servicer begin receiving KYHC assistance for a homeowner prior to program registration?
What are the servicer requirements for program participation?
Who should a servicer contact if they have general questions about the program but are not ready to register?
General Information & Funding
Q: What is the Keep Your Home California program?
A: Keep Your Home California (KYHC) is a federally funded program to help California homeowners struggling to pay their mortgages. California has received nearly $2 billion in federal funding and is working with housing counselors, servicers and housing advocates to provide assistance that will help prevent avoidable foreclosures and keep Californians in their homes. Full details on the program are available at www.KeepYourHomeCalifornia.org.
Q: Is funding for the Keep Your Home California program limited?
A: Yes, funding for KYHC is limited to approximately $2 billion. Some programs require servicers to contribute a dollar-for-dollar "match" which will increase the dollars available resulting in a greater impact for California families.
Q: How much money is available to assist eligible homeowners?
A: The KYHC program benefit cap of $50,000 per qualifying household. With matching servicer dollars, the maximum benefit a household could increase to $100,000 in assistance.
Q: What types of foreclosure prevention programs were designed?
A: KYHC contains four programs to assist California homeowners. Three of these programs are designed to help qualifying homeowners remain in their homes and avoid foreclosure:
- Unemployment Mortgage Assistance Program
- Mortgage Reinstatement Assistance Program
- Principal Reduction Program
The fourth program, the Transition Assistance Program, provides financial assistance for homeowners who can no longer afford their home and need help transitioning to other housing. The Transition Assistance Program may only be used in conjunction with a short sale or deed-in-lieu of foreclosure transaction.
For detailed descriptions of each of these foreclosure prevention programs, visit the website at www.KeepYourHomeCalifornia.org/programs.htm.
Q: What is CalHFA MAC?
A: CalHFA MAC is CalHFA Mortgage Assistance Corporation, a nonprofit organization whose Board of Directors and Officers are employees of CalHFA and receive no additional compensation for performing these duties. CalHFA MAC was created specifically to receive and disburse these federal funds to qualifying California homeowners; these funds cannot be commingled with or used for any other state budget purpose.
Eligibility
Q: Who is eligible for the programs?
A: General homeowner eligibility requirements for these programs include, but are not limited to, the following:
- California residents that own and occupy the home as their primary residence
- Current unpaid principal balance of first mortgage cannot exceed $729,750
- Meet low and moderate area income limits
- Complete and sign a Hardship Affidavit to document reason for hardship
- Mortgage loan is delinquent or in imminent default
- Adequate income to sustain modified mortgage payments according to participating servicer guidelines
For a more detailed discussion of eligibility requirements, visit http://keepyourhomecalifornia.org/qualify.aspx.
Q: What types of properties are eligible for the programs?
A: General property eligibility requirements for these programs include the following:
- Located in California
- Owner occupied; principal residence
- Mortgage is a first lien loan
- Property must not be abandoned, vacant, or condemned
Q: Do homeowners need to be behind on their mortgage payments to be eligible for the Keep Your Home California programs?
A: No. California homeowners who are struggling to remain current on their mortgage payments are eligible if they reasonably believe they are very likely to default on their mortgage soon (often referred to as "imminent default"). For example, if a homeowner has had (or will have) a significant increase in the mortgage payment (due to a payment adjustment or rate adjustment upwards), or has suffered a financial hardship such as unemployment that will make the mortgage unaffordable.
Q: Do homeowners need to have a CalHFA loan to qualify?
A: No. Any California homeowner who meets the KYHC program eligibility requirements can qualify.
Q: How does a homeowner receive KYHC program benefits?
A: All KYHC program benefits are sent directly to a homeowners first mortgage servicer. The servicer must be registered to participate in the program to ensure that funds are properly applied and reported. If you are a servicer interested in participating in the Keep Your Home California program, contact the Servicer Relations Manager, Sandra Gallagher, at 916.326.8057 or sgallagher@calhfa.ca.gov.
Q: How is eligibility determined for the Keep Your Home California programs?
A: Homeowner eligibility criteria is available on the KYHC Eligibility Calculator at http://keepyourhomecalifornia.org/qualify.aspx.
Q: What type of hardships will be considered?
A: Eligible homeowners who have suffered a severe reduction in their household income or are facing increased expenses beyond their control will be considered for assistance.
Q: If a homeowner qualifies for this assistance, do they have to pay it back?
A: This assistance will be provided to eligible homeowners as a conditional lien. They are not required to make payments; however, if the homeowner sells their home or fails to maintain their loan in good standing for three years from receiving the assistance, the lien becomes a loan and the homeowner may be required to pay it back.
Q: Do homeowners need to pay a fee to take part in the Keep Your Home California programs?
A: No. Homeowners will never be asked to pay a fee to participate in the Keep Your Home California programs and servicers are prohibited from collecting fees for this purpose.
Q: Can homeowners apply for more than one program?
A: Once a homeowner has qualified for one of the programs, they may be eligible to apply for a different program, depending on their particular financial situation; however, there is an overall assistance cap from KYHC of $50,000 per household (not including matching funds provided by servicers).
Q: What will happen if a homeowner uses up all the funds provided and still does not have a job?
A: They will then be eligible for free HUD foreclosure prevention counseling which could help them qualify for other programs. Some of these may include transition to other foreclosure alternatives, such as deed-in-lieu of foreclosure or short sale.
Q: If a homeowner does not live in the house that secures the mortgage they would like to modify, is this mortgage eligible for a Keep Your Home California program?
A: No. If the homeowner owns a house that is used as a vacation home or that is not their primary residence, the home is not eligible for assistance from any of the Keep Your Home California programs.
Q: If a renter is living in a home that is in default and is at risk of foreclosure, are they eligible for assistance through the Keep Your Home California programs?
A: No. The programs are for owner-occupied properties only.
Q: If a homeowner has a mortgage on a duplex, lives in one unit and rents out the other unit, could they still be eligible for a Keep Your Home California program?
A: Yes. Mortgages on two, three and four-unit properties can be eligible as long as the homeowner lives in one unit as their primary residence.
Q: Is a Homeowner eligible to apply for KYHC assistance if they were offered a loan modification from their servicer but turned it down?
A: Yes, as long as the homeowner currently meets the eligibility criteria, they are still eligible to apply for assistance through Keep Your Home California.
Q: Where can I find additional information about the KYHC program?
A: The www.KeepYourHomeCalifornia.org web site will be updated frequently. Servicers can also register for enews announcements by visiting the web site and clicking on "email updates" or you can follow us on Twitter (www.twitter.com/calhfa).
Servicers are also encouraged to contact the Keep Your Home California Servicer Relations Manager, Sandra Gallagher, at 916.326.8057 or sgallagher@calhfa.ca.gov.
Registration & Participation Process
Q: Will California state and local agencies be pre-qualifying the homeowners?
A: KYHC will qualify homeowners for the KYHC program at a general eligibility level; however, the servicer will be required to provide data that helps determine program-specific final approval. Examples of this include:
- UMA requires the servicer provide actual PITI+escrowed A (principal, interest, taxes, insurance and escrowed association fees, as applicable) payment information for each scheduled benefit payment period that may include changes that occur during the UMA benefit period (rate reset, escrow analysis and escrow shortage).
- MRAP requires that the servicer provide detailed reinstatement figures to calculate KYHC program final funding.
- PRP requires the servicer to provide information on a servicer worksheet or standardized flat file indicating all applicable trial payments have been made by the homeowner and the final modification has been approved.
- TAP requires the servicer to provide copies of the investor approval letter for a short sale and/or deed-in-lieu of foreclosure and scheduled transaction close date.
Q: Will servicers receive pre-qualified information packages from counselors for decisioning?
A: KYHC will determine general homeowner eligibility. Final approval will be determined once the servicer provides specific data and validations to KYHC.
Q: What types of program information will KYHC send to participating servicers during the transaction process?
A: KYHC will send program information to participating servicer for only those homeowners that meet the program's general eligibility criteria. The file will include information about the program benefit assistance and include a signed homeowner authorization and disclosure form and a KYHC pre-qualification award letter that shows the full amount of the KYHC funding available. Servicers will be required to provide certain information to the KYHC program including confirmation that they will accept benefit assistance on behalf of the eligible homeowner. The KYHC centralized processing center (CPC) will provide servicers with final program determination including information regarding when to expect benefit assistance payments.
Q: What form of communication does KYHC plan to utilize to receive and send information?
A: The CPC has a unique toll free number and staff assigned to manage transactions. Telephone, email, Secure File Transfer, and a KYHC web portal will be used to send/receive/share data necessary to process transactions. Each servicer will be required to provide a KYHC department/team to answer phone calls and emails in order to expedite KYHC transactions.
Q: What funds transfer mechanisms will CalHFA MAC utilize?
A: CalHFA MAC will use an ACH credit process to deliver KYHC funds to the servicer after the servicer has returned the required information and CalHFA MAC has performed a final review of and approved the transaction.
Q: Will CalHFA MAC track program compliance conditions such as the examples below?
- Years of forgiveness on second non-amortized loans
- Homeownership/occupancy
- Number of months of assistance remaining
- Homeowner re-employment status
A: Yes. CalHFA MAC is responsible for program compliance monitoring including loan forgiveness, homeowner occupancy, program assistance terms, and re-employment status.
Q: When KYHC program funds are depleted, who stops the flow of requests to servicers?
A: CalHFA MAC is responsible for tracking KYHC funding commitments through effective pipeline management. Program term sheets and disclosures state clearly the conditions of each pre-qualification award letter.
Q: Will servicers be expected to implement all four of the KYHC programs at the same time?
A: No. Participation in KYHC programs is strictly voluntary. During the enrollment process, servicers will be required to register for the programs in which they wish to participate. This will assist KYHC in effective communication and management of the program as it pertains to homeowner inquiries (e.g., if a homeowner calls the CPC and inquires about the principal reduction program and our records indicate that the servicer does not participate in this program, we will advise the homeowner accordingly).
Q: Does homeowner eligibility criteria vary by KYHC program?
A: Yes, homeowner eligibility criteria varies by program. Servicers will receive copies of all operational term sheets during the enrollment process. KYHC encourages servicers to become familiar with all of their registered programs.
Operational term sheets are available through the Keep Your Home California Servicer Relations Manager, Sandra Gallagher, at 916.326.8057 or sgallagher@calhfa.ca.gov.
Q: Are servicers required to offer a dollar for dollar matching contribution to participate in the KYHC program?
A: Participation in KYHC is strictly voluntary. At this time, participation in the PRP program generally requires servicers to match KYHC contributions dollar for dollar.
Q: What should a servicer do if they want to register for one or more of the KYHC programs?
A: Servicers should contact the Keep Your Home California Servicer Relations Manager, Sandra Gallagher, at 916.326.8057 or sgallagher@calhfa.ca.gov.
Q: How much time will it take to get registered and begin participation in the program?
A: The timing for registration varies by program and by individual servicer participation. Most servicers register and begin receiving KYHC benefit assistance for homeowners within 30 days from initial contact.
Q: Will a servicer begin receiving KYHC assistance for a homeowner prior to program registration?
A: No. A servicer will never receive KYHC assistance for a homeowner prior to completion of the registration process.
Q: What are the servicer requirements for program participation?
A: Participation by servicer in the KYHC program is voluntary. Servicers must designate which programs in which they wish to participate. Servicers are to establish specific points of contact for KYHC, to include both telephone and email contact information, dedicated staff familiar with the federal Make Home Affordable programs and the KYHC programs in which the servicer has agreed to participate.
KYHC programs will be conducted in accordance with program descriptions. Servicers must obtain all applicable investor and mortgage insurer approvals for a mortgage that receives any KYHC monies.
Servicers will waive late charges and non-sufficient funds (NSF) fees.
Servicers will provide KYHC with loan performance data for all homeowners who receive KYHC assistance as specified in the operational term sheets.
Q: Who should a servicer contact if they have general questions about the program but are not ready to register?
A: Contact the Keep Your Home California Servicer Relations Manager, Sandra Gallagher, at 916.326.8057 or sgallagher@calhfa.ca.gov.
888-954-KEEP(5337)