HPP is a contract that protects borrowers in financing agreements (like rental, leases or mortgages) against payment default if they are unable to make their monthly payments due to a hardship, natural disaster or loss of income. Yes, HPP covers government shut downs and pandemics like COVID-19!
YES, COVID-19 is covered and is the type of unexpected hardship that HPP was designed to assist. If you lose your job, have a reduction in income or worse – lose a loved one – you are covered by HPP.
HPP covers most major hardships including death, disability, loss of employment, reduction in income, and natural disasters. HPP does not protect against voluntary or self-inflicted hardships.
HPP is designed to cover unexpected life events. HPP does not cover voluntary events like relocating, changing jobs or going back to school.
Filing a claim begins by submitting loss information and documentation here. Your submission will be reviewed by the our team and additional documentation will be requested, or an approval or denial will be issued. You will then have the option to work with a third-party counselor to review your situation.
Mortgage insurance doesn’t protect you. It only protects investors and insurers once you lose your home and it is sold after foreclosure. It does NOT protect you against a hardship, missed payment or for any other reason.
The cost of HPP is based on the cost of your home and/or your monthly housing payment. The one-time cost is just a fraction of your monthly payment. Certain geographies and credit scores increase the cost of HPP.
For mortgages, the cost for HPP is included in most financing agreements as a part of the closing costs. After the first year, the cost is billed automatically to your servicer and added to your monthly payment, just like other homeowners insurance.
HPP pays up to 50% of the total monthly rent or mortgage payment due for qualified claims. For mortgages, this payment includes the 'fully burdened' payment inclusive of principal, interest, mortgage insurance, property taxes, and homeowner's insurance. It does not cover homeowner's association dues or utilities.
HPP insures servicers of rental and mortgage agreements against non-payment.
Claims are paid directly to your mortgage or lease servicer for your financing agreement.
Mortgages are covered for 3 months per claim and 6 months per 3 years.
For approved claims, HPP pays up to 50% of your fully burdened rental or mortgage payment to your servicer. Coverage is active after 6 months following the closing date of your mortgage or move-in date from your rental agreement.
Ask your lender or landlord if HPP is included with your home. If not, have them contact firstname.lastname@example.org for information on how to participate.