MORTGAGE DEFAULT RESOLUTION PROGRAM

BRIEF DESCRIPTION The Arkansas Development Finance Authority (ADFA) will provide financial

assistance to eligible homeowners for: 

• Principal assistance to be combined with a loss mitigation option to 

eliminate past due payments and servicer-advances, reduce the rate of 

interest, recast or modify payment terms, as appropriate to result in a 

sustainable, affordable payment.

MAXIMUM AMOUNT 

OF ASSISTANCE PER 

HOMEOWNER

Homeowners are eligible to receive a one-time mortgage benefit of up to $50,000 per

household, to be used only for the homeowner’s primary residence.

Homeowners are ineligible for Mortgage Default Resolution assistance if they have 

previously received Mortgage Reinstatement assistance.

HOMEOWNER 

ELIGIBILITY CRITERIA 

AND 

DOCUMENTATION 

REQUIREMENTS

• Homeowner has experienced a financial hardship after January 21, 

2020 (including a hardship that began before January 21, 2020, but 

continued after that date), and provided an attestation describing the 

nature of the financial hardship

• Homeowner has incomes equal to or less than 150% of the area 

median income or 100% of the median income for the United States, 

whichever is greater

• Homeowner must be applying for assistance related to the dwelling that 

the homeowner owns and is the homeowner’s primary residence

• Property must be located within the state of Arkansas

• Property must not be vacant, abandoned or condemned

• Property must not be listed for sale or approved for a short sale 

or deed-in-lieu.

• Mortgage must be held by a lender/servicer with an NMLS number, 

which would include federally backed and privately funded 

mortgages. Private party mortgages are ineligible for assistance

• Identification for the Borrower & Co-borrower(s), as applicable

• Income documents for the Borrower & Co-borrower(s), as applicable, 

(e.g., federal tax return, W-2s, other wage statements, unemployment, 

short-term disability, social security statements, etc., unless exempt 

based on fact-specific proxy)

o Household income will be determined based on Borrower & Coborrower(s) income only, as those represent the individuals 

financially responsible for the mortgage

• Proof of homeownership, ONLY if cannot be determined by HAF based 

on publicly available ownership records
• Documents from mortgage servicer demonstrating delinquency. 

Documents should indicate the account number, payment amount, 

payment due date, total past due amount, type of loan, and payment

remittance address (e.g., most recent mortgage statement, letters from 

mortgage holders, etc.)

• Original mortgage to determine if the unpaid principal balance of which

was, at the time of origination, not more than the conforming loan limit

o This will ONLY be required from applicant if cannot be determined 

by the program based on publicly available records or 

coordination with the servicers

Additional documents that may be required based on individual situations:

• Power of attorney or probate documents, if applicable

• Zero income attestation form, if applicable

• Self-employment attestation form, if applicable

Documents to be completed within the system as part of application:

• Third-party authorization form

• Financial hardship self-attestation form

• Acknowledgement of Program Terms and Conditions

NOTE: For program documents, if the applicant needs certain accommodations, the

forms can be provided in other formats (e.g., paper application, additional languages, etc.)

LOAN ELIGIBILITY 

CRITERIA SPECIFIC TO 

THE PROGRAM

• Loan must delinquent by at least two payments, including any payments 

during a forbearance period.
MORTGAGE REINSTATEMENT PROGRAM

BRIEF DESCRIPTION The Arkansas Development Finance Authority (ADFA) will provide financial

assistance for eligible homeowners to:

• Eliminate delinquent mortgage payments and other delinquent 

amounts, including payments in forbearance, on forward mortgage or 

loans secured by manufactured homes.

• Bring the loan fully current with no remaining delinquent amounts, and 

repay amounts advanced by the lender or servicer for property 

charges, including property taxes, property insurance, ground rents, 

condominium and cooperative maintenance fees, planned unit 

development fees, and other fees the servicer may have paid to

protect the lien position. 

• Receive up to six (6) months of mortgage payment assistance –

provided to households with annual median income <100%.

• Receive up to three (3) months of mortgage payment assistance –

provided to households with annual median income between 100 % -

150%

MAXIMUM AMOUNT 

OF ASSISTANCE PER 

HOMEOWNER

Homeowners are eligible to receive a one-time mortgage reinstatement, which may 

include monthly payment assistance, the total of which may not exceed $50,000 per

household, to be used only for the homeowner’s primary residence.

Homeowners are ineligible for Mortgage Reinstatement, which may include 

monthly payment assistance, if they have previously received Mortgage Default 

Resolution assistance
HOMEOWNER 

ELIGIBILITY CRITERIA 

AND 

DOCUMENTATION 

REQUIREMENTS

• Homeowner has experienced a financial hardship after January 21, 

2020 (including a hardship that began before January 21, 2020, but 

continued after that date), and provided an attestation describing the 

nature of the financial hardship

• Homeowner has incomes equal to or less than 150% of the area 

median income or 100% of the median income for the United States, 

whichever is greater

• Homeowner must be applying for assistance related to the dwelling that 

the homeowner owns and is the homeowner’s primary residence

• Property must be located within the state of Arkansas

• Property must not be vacant, abandoned or condemned

• Property must not be listed for sale or approved for a short sale 

or deed-in-lieu

• Mortgage must be held by a lender/servicer with an NMLS number, 

which would include federally backed and privately funded 

mortgages. Private party mortgages are ineligible for assistance

• Identification for the Borrower & Co-borrower(s), as applicable

• Income documents for the Borrower & Co-borrower(s), as applicable, 

(e.g., federal tax return, W-2s, other wage statements, unemployment, 

short-term disability, social security statements, etc., unless exempt 

based on fact-specific proxy)

o Household income will be determined based on Borrower & Coborrower(s) income only, as those represent the individuals 

financially responsible for the mortgage

• Proof of homeownership, ONLY if cannot be determined by HAF based 

on publicly available ownership records

• Documents from mortgage servicer demonstrating delinquency. 

Documents should indicate the account number, payment amount, 

payment due date, total past due amount, type of loan, and payment

remittance address (e.g., most recent mortgage statement, letters from 

mortgage holders, etc.)

• Original mortgage to determine if the unpaid principal balance of which

was, at the time of origination, not more than the conforming loan limit

o This will ONLY be required from applicant if cannot be determined 

by the program based on publicly available records or 

coordination with the servicers

Additional documents that may be required based on individual situations:

• Power of attorney or probate documents, if applicable

• Zero income attestation form, if applicable

• Self-employment attestation form, if applicable

Documents to be completed within the system as part of application:

• Third-party authorization form

• Financial hardship self-attestation form

• Acknowledgement of Program Terms and Conditions

NOTE: For program documents, if the applicant needs certain accommodations, the
forms can be provided in other formats (e.g., paper application, additional languages, etc.)

LOAN ELIGIBILITY 

CRITERIA SPECIFIC TO 

THE PROGRAM

• Loan must delinquent by at least two payments, including any payments 

during a forbearance period.

FORM OF ASSISTANCE Assistance will be structured as a non-recourse grant.

PAYMENT 

REQUIREMENTS

Payments will be disbursed directly to mortgage lenders and servicers.

REVERSE MORTGAGE REINSTATEMENT PROGRAM

BRIEF DESCRIPTION The Arkansas Development Finance Authority (ADFA) will provide financial

assistance for eligible homeowners to: 

• Assist senior homeowners who are in danger of losing their home to 

foreclosure due to their inability to pay required property expenses 

associated with their reverse mortgage loan.

• Reimburse reverse mortgage servicers for amounts advanced on behalf 

of senior homeowners to pay property taxes, homeowner’s insurance, 

homeowner’s association dues or assessments and other ADFA 

approved property-related expenses. These amounts will “reinstate” 

the reverse mortgage and stop the default condition and impending 

foreclosure. 

• Provide an advance of the approved property expenses for an 

additional twelve (12) months to enable the homeowner time to work 

with a HUD counselor and develop a plan to recover of their hardship. 

MAXIMUM AMOUNT 

OF ASSISTANCE PER 

HOMEOWNER

• Senior homeowners are eligible to receive a one-time mortgage

reinstatement of past due property charges and up to twelve (12) months of 

future property charge expenses, the total of which may not exceed $50,000

per household, to be used only for the senior homeowner’s primary

residence.

• Senior homeowners are ineligible for forward Mortgage Reinstatement, 

which may include monthly payment assistance, and/or forward Mortgage 

Default Resolution Assistance if they have previously received a Mortgage 

Reinstatement for a Reverse Mortgage. 

HOMEOWNER 

ELIGIBILITY CRITERIA 

AND 

DOCUMENTATION 

REQUIREMENTS

• Homeowner has experienced a financial hardship after January 21, 

2020 (including a hardship that began before January 21, 2020, but 

continued after that date), and provided an attestation describing the 

nature of the financial hardship

• Homeowner has incomes equal to or less than 150% of the area 

median income or 100% of the median income for the United States, 

whichever is greater

• Homeowner must be applying for assistance related to the dwelling that 

the homeowner owns and is the homeowner’s primary residence

• Property must be located within the state of Arkansas

• Property must not be vacant, abandoned or condemned

• Property must not be listed for sale or approved for a short sale 

or deed-in-lieu

• Mortgage must be held by a lender/servicer with an NMLS number, 

which would include federally backed and privately funded 

mortgages. Private party mortgages are ineligible for assistance

• Identification for the Borrower & Co-borrower(s), as applicable
• Income documents for the Borrower & Co-borrower(s), as applicable, 

(e.g., federal tax return, W-2s, other wage statements, unemployment, 

short-term disability, social security statements, etc., unless exempt 

based on fact-specific proxy)

o Household income will be determined based on Borrower & Coborrower(s) income only, as those represent the individuals 

financially responsible for the mortgage

• Proof of homeownership, ONLY if cannot be determined by HAF based 

on publicly available ownership records

• Documents from reverse mortgage servicer demonstrating delinquency

associated with advance property expenses. Documents should indicate 

the account number, advanced amount, date of property expense 

advance(s), type of loan, and payment remittance address. 

• Reverse mortgage documentation to determine if the original loan 

amount, at the time of origination, is not more than the conforming loan 

limit

o This will ONLY be required from applicant if cannot be determined 

by the program based on publicly available records or 

coordination with the servicers

 Additional documents that may be required based on individual situations:

• Power of attorney or probate documents, if applicable

• Zero income attestation form, if applicable

• Self-employment attestation form, if applicable

 Documentsto be completed within the system as part of application:

• Third-party authorization form

• Financial hardship self-attestation form

• Acknowledgement of Program Terms and Conditions

 NOTE: For program documents, if the applicant needs certain accommodations, the 

forms can be provided in other formats (e.g., paper application, additional languages, etc.)

LOAN ELIGIBILITY 

CRITERIA SPECIFIC TO 

THE PROGRAM

• Reverse mortgage loan must be in default as evidenced by reverse 

mortgage lender advancement of delinquent property charges. 

FORM OF ASSISTANCE • Assistance will be structured as a non-recourse grant.

PAYMENT 

REQUIREMENTS • Payments will be disbursed directly to reverse mortgage lenders and 

servicers.