Pennsylvania Code
Title 10 - BANKING AND SECURITIES
Part IV - Bureau of Consumer Credit Agencies
Chapter 59 - MORTGAGE SERVICING
Section 59.10 - General servicing policies, procedures, and requirements
Universal Citation: 10 PA Code ยง 59.10
Current through Register Vol. 54, No. 12, March 23, 2024
(a) Reasonable policies and procedures. A servicer shall maintain policies and procedures that are reasonably designed to achieve the objectives set forth in paragraph (b) of this section.
(b) Objectives.
(1)
Accessing and providing timely
and accurate information. The policies and procedures required by
paragraph (a) of this section shall be reasonably designed to ensure that the
servicer can:
(i) Provide accurate and timely
disclosures to a borrower as required by this chapter or other applicable
law;
(ii) Investigate, respond to,
and, as appropriate, make corrections in response to complaints asserted by a
borrower;
(iii) Provide a borrower
with accurate and timely information and documents in response to the
borrower's requests for information with respect to the borrower's mortgage
loan;
(iv) Provide owners or
assignees of mortgage loans with accurate and current information and documents
about all mortgage loans they own;
(v) Submit documents or filings required for
a foreclosure process, including documents or filings required by a court of
competent jurisdiction, that reflect accurate and current information and that
comply with applicable law; and
(vi)
(A)
Upon receiving notice of the death of a borrower or of any transfer of the
property securing a mortgage loan, promptly facilitate communication with any
potential or confirmed successors in interest regarding the property;
(B) Upon receiving notice of the existence of
a potential successor in interest, promptly determine the documents the
servicer reasonably requires to confirm that person's identity and ownership
interest in the property and promptly provide to the potential successor in
interest a description of those documents and how the person may submit a
written request under §
59.8(i) (relating
to requests for information) (including the appropriate address); and
(C) Upon the receipt of such documents,
promptly make a confirmation determination and promptly notify the person, as
applicable, that the servicer has confirmed the person's status, has determined
that additional documents are required (and what those documents are), or has
determined that the person is not a successor in interest.
(2)
Properly evaluating
loss mitigation applications. The policies and procedures required by
paragraph (a) of this section shall be reasonably designed to ensure that the
servicer can:
(i) Provide accurate information
regarding loss mitigation options available to a borrower from the owner or
assignee of the borrower's mortgage loan;
(ii) Identify with specificity all loss
mitigation options for which borrowers may be eligible pursuant to any
requirements established by an owner or assignee of the borrower's mortgage
loan;
(iii) Provide prompt access
to all documents and information submitted by a borrower in connection with a
loss mitigation option to servicer personnel that are assigned to assist the
borrower pursuant to §
59.12 (relating to continuity of
contact);
(iv) Identify documents
and information that a borrower is required to submit to complete a loss
mitigation application and facilitate compliance with the notice required
pursuant to §
59.13(b)(2)(i)(B)
(relating to loss mitigation procedures); and
(v) Properly evaluate a borrower who submits
an application for a loss mitigation option for all loss mitigation options for
which the borrower may be eligible pursuant to any requirements established by
the owner or assignee of the borrower's mortgage loan and, where applicable, in
accordance with the requirements of § 59.13.
(vi) Promptly identify and obtain documents
or information not in the borrower's control that the servicer requires to
determine which loss mitigation options, if any, to offer the borrower in
accordance with the requirements of § 59.13(c)(4).
(3)
Facilitating oversight of, and
compliance by, service providers. The policies and procedures required
by paragraph (a) of this section shall be reasonably designed to ensure that
the servicer can:
(i) Provide appropriate
servicer personnel with access to accurate and current documents and
information reflecting actions performed by service providers;
(ii) Facilitate periodic reviews of service
providers, including by providing appropriate servicer personnel with documents
and information necessary to audit compliance by service providers with the
servicer's contractual obligations and applicable law; and
(iii) Facilitate the sharing of accurate and
current information regarding the status of any evaluation of a borrower's loss
mitigation application and the status of any foreclosure proceeding among
appropriate servicer personnel, including any personnel assigned to a
borrower's mortgage loan account as described in § 59.12, and appropriate
service provider personnel, including service provider personnel responsible
for handling foreclosure proceedings.
(4)
Facilitating transfer of
information during servicing transfers. The policies and procedures
required by paragraph (a) of this section shall be reasonably designed to
ensure that the servicer can:
(i) As a
transferor servicer, timely transfer all information and documents in the
possession or control of the servicer relating to a transferred mortgage loan
to a transferee servicer in a form and manner that ensures the accuracy of the
information and documents transferred and that enables a transferee servicer to
comply with the terms of the transferee servicer's obligations to the owner or
assignee of the mortgage loan and applicable law; and
(ii) As a transferee servicer, identify
necessary documents or information that may not have been transferred by a
transferor servicer and obtain such documents from the transferor
servicer.
(iii) For the purposes of
this paragraph (b)(4), transferee servicer means a servicer, including a master
servicer or a subservicer, that performs or will perform servicing of a
mortgage loan and transferor servicer means a servicer, including a master
servicer or a subservicer, that transfers or will transfer the servicing of a
mortgage loan.
(5)
Informing borrowers of the written error resolution and information
request procedures. The policies and procedures required by paragraph
(a) of this section shall be reasonably designed to ensure that the servicer
informs borrowers of the procedures for submitting written notices of error set
forth in §
59.7 (relating to error resolution
procedures) and written information requests set forth in §
59.8.
(c) Standard requirements.
(1)
Record retention. A servicer shall retain records that
document actions taken with respect to a borrower's mortgage loan account until
one year after the date a mortgage loan is discharged or servicing of a
mortgage loan is transferred by the servicer to a transferee
servicer.
(2)
Servicing
file. A servicer shall maintain the following documents and data on
each mortgage loan account serviced by the servicer in a manner that
facilitates compiling such documents and data into a servicing file within five
days:
(i) A schedule of all transactions
credited or debited to the mortgage loan account, including any escrow account
as defined in 12 CFR
1024.17(b) (relating to
escrow accounts) and any suspense account;
(ii) A copy of the security instrument that
establishes the lien securing the mortgage loan;
(iii) Any notes created by servicer personnel
reflecting communications with the borrower about the mortgage loan
account;
(iv) To the extent
applicable, a report of the data fields relating to the borrower's mortgage
loan account created by the servicer's electronic systems in connection with
servicing practices; and
(v) Copies
of any information or documents provided by the borrower to the servicer in
accordance with the procedures set forth in § 59.7 or §
59.13.
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