Code of Massachusetts Regulations
761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY
Title 761 CMR 22.00 - Servicer's Guide
LOAN SERVICING
Section 22.22 - Acquired Properties; Disposition

Universal Citation: 761 CMR 22.00 MA Code of Regs 22.22
Current through Register 1531, September 27, 2024

Servicer shall be responsible for the maintenance and security of properties acquired through foreclosure of Mortgage Loans for a period of 60 days following the date of acquisition of such earlier date as MHMFA shall specify in writing to Servicer. Servicer shall make regular inspection of the condition and occupancy of each acquired property and report the same to MHMFA, take protective action when necessary, collect and remit rents, and pay minor expenses.

Servicer shall notify the insurance carrier of changes in occupancy and ownership. If the property is vacant, Servicer shall promptly investigate the availability and cost of vandalism and malicious mischief insurance and make a recommendation thereon to MHMFA. Any accidents or incidents occurring on the property must be immediately reported to MHMFA , in writing, by Servicer.

In the case of Conventional Mortgage Loans insured by private mortgage insurer, Servicer shall make timely application for the benefits of such insurance and ascertain whether the property is to be conveyed to the insurance carrier or the claim otherwise settled. Servicer shall work closely with MHMFA and take all action necessary to obtain for MHMFA the benefits of such insurance. After receipt of payment from the insurance carrier, Servicer shall remit the MHMFA ratable portion with the next remittance scheduled.

With respect to properties acquired pursuant to FHA/ VA Mortgage Loans, Servicer shall arrange for the prompt transfer of the property to the FHA or VA within the period prescribed by FHA or VA, shall file the necessary notices, and satisfy all FHA or VA requirements. Servicer shall promptly process the claim for FHA insurance or VA guaranty benefits on behalf of MHMFA and arrange for payment directly to MHMFA. Whenever possible, MHMFA prefers that foreclosed property be deeded directly to FHA or VA.

Copies of all notices relating to a claim for benefits sent to the FHA or VA or private mortgage insurer must be simultaneously sent to MHMFA. Copies of responses from the FHA or VA or private mortgage insurer must immediately be forwarded to MHMFA along with recommendations of actions to be taken, if necessary.

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