Date: March 13, 2023
Subject: HAF Amended Proof of Claim (APOC) Format
As our clients are seeing more and more borrowers taking advantage of HAF (Homeowner Assistance Fund) to reduce or eliminate mortgage delinquency, we want to make sure everyone is mindful of the impact on those loans that are in bankruptcy.
If you have filed a (Proof of Claim) POC in a bankruptcy case and money has been received from HAF, there may be a need to file an Amended POC (APOC).
For instance, if HAF money was applied to outstanding pre-petition arrearage in a Chapter 13 case, then an APOC is recommended to ensure this credit is applied to the arrearage in the claim. NOTE: Much like an APOC due to loan modification, any disbursements from the trustee paid before HAF should remain in arrearage on the APOC. If you do not reconcile with the trustee disbursements, the trustee will seek a refund of prior amounts paid.
To assist in uniform processing of these HAF APOCs, our firm is adopting the format attached to this memo. Special language is highlighted. We are using the description “HAF Adjustment” on the POC 410A form, and we are adding special language on the following addendum page. Here is the language for reference as well:
Please be advised HAF (Homeowner Assistance Fund) assistance was received on this loan and some/all of the original arrearage may have been credited. Any remaining arrearage on this claim reflects disbursements that were paid to the creditor before this loan assistance was received.
Please share this memo with any impacted team members to ensure alignment as to HAF APOC format. This is our firm’s standard format for this scenario. To the extent any creditor has a different required format, please let us know as soon as possible so we can integrate any client nuances into our process and technology.