Current through Register Vol. 54, No. 12, March 23, 2024
(a)
Enforcement and limitations. A borrower may enforce the
provisions of this section pursuant to section 6(f) of Real Estate Settlement
Procedures Act of 1974 (12
U.S.C.A. §
2605(f)).
Nothing in this Section imposes a duty on a servicer to provide any borrower
with any specific loss mitigation option. Nothing in this Section should be
construed to create a right for a borrower to enforce the terms of any
agreement between a servicer and the owner or assignee of a mortgage loan,
including with respect to the evaluation for, or offer of, any loss mitigation
option or to eliminate any such right that may exist pursuant to applicable
law.
(b)
Receipt of a loss
mitigation application.
(1)
Complete loss mitigation application. A complete loss
mitigation application means an application in connection with which a servicer
has received all the information that the servicer requires from a borrower in
evaluating applications for the loss mitigation options available to the
borrower. A servicer shall exercise reasonable diligence in obtaining documents
and information to complete a loss mitigation application.
(2)
Review of loss mitigation
application submission.
(i)
Requirements. If a servicer receives a loss mitigation
application 45 days or more before a foreclosure sale, a servicer shall:
(A) Promptly upon receipt of a loss
mitigation application, review the loss mitigation application to determine if
the loss mitigation application is complete; and
(B) Notify the borrower in writing within 5
days (excluding legal public holidays, Saturdays, and Sundays) after receiving
the loss mitigation application that the servicer acknowledges receipt of the
loss mitigation application and that the servicer has determined that the loss
mitigation application is either complete or incomplete. If a loss mitigation
application is incomplete, the notice shall state the additional documents and
information the borrower must submit to make the loss mitigation application
complete and the applicable date pursuant to paragraph (b)(2)(ii) of this
section. The notice to the borrower shall include a statement that the borrower
should consider contacting servicers of any other mortgage loans secured by the
same property to discuss available loss mitigation options.
(ii)
Time period
disclosure. The notice required pursuant to paragraph (b)(2)(i)(B) of
this section must include a reasonable date by which the borrower should submit
the documents and information necessary to make the loss mitigation application
complete.
(3)
Determining protections. To the extent a determination of
whether protections under this section apply to a borrower is made on the basis
of the number of days between when a complete loss mitigation application is
received and when a foreclosure sale occurs, such determination shall be made
as of the date a complete loss mitigation application is received.
(c)
Evaluation of loss
mitigation applications.
(1)
Complete loss mitigation application. Except as provided in
paragraph (c)(4)(ii) of this section, if a servicer receives a complete loss
mitigation application more than 37 days before a foreclosure sale, then,
within 30 days of receiving the complete loss mitigation application, a
servicer shall:
(i) Evaluate the borrower for
all loss mitigation options available to the borrower; and
(ii) Provide the borrower with a notice in
writing stating the servicer's determination of which loss mitigation options,
if any, it will offer to the borrower on behalf of the owner or assignee of the
mortgage. The servicer shall include in this notice the amount of time the
borrower has to accept or reject an offer of a loss mitigation program as
provided for in paragraph (e) of this section, if applicable, and a
notification, if applicable, that the borrower has the right to appeal the
denial of any loan modification option as well as the amount of time the
borrower has to file such an appeal and any requirements for making an appeal,
as provided for in paragraph (h) of this section.
(2)
Incomplete loss mitigation
application evaluation.
(i)
In general. Except as set forth in paragraphs (c)(2)(ii),
(iii), (v) and (vi) of this section, a servicer shall not evade the requirement
to evaluate a complete loss mitigation application for all loss mitigation
options available to the borrower by offering a loss mitigation option based
upon an evaluation of any information provided by a borrower in connection with
an incomplete loss mitigation application.
(ii)
Reasonable time.
Notwithstanding paragraph (c)(2)(i) of this section, if a servicer has
exercised reasonable diligence in obtaining documents and information to
complete a loss mitigation application, but a loss mitigation application
remains incomplete for a significant period of time under the circumstances
without further progress by a borrower to make the loss mitigation application
complete, a servicer may, in its discretion, evaluate an incomplete loss
mitigation application and offer a borrower a loss mitigation option. Any such
evaluation and offer is not subject to the requirements of this section and
shall not constitute an evaluation of a single complete loss mitigation
application for purposes of paragraph (i) of this section.
(iii)
Short-term loss mitigation
options. Notwithstanding paragraph (c)(2)(i) of this section, a
servicer may offer a short-term payment forbearance program or a short-term
repayment plan to a borrower based upon an evaluation of an incomplete loss
mitigation application. Promptly after offering a payment forbearance program
or a repayment plan under this paragraph (c)(2)(iii), unless the borrower has
rejected the offer, the servicer must provide the borrower a written notice
stating the specific payment terms and duration of the program or plan, that
the servicer offered the program or plan based on an evaluation of an
incomplete application, that other loss mitigation options may be available,
and that the borrower has the option to submit a complete loss mitigation
application to receive an evaluation for all loss mitigation options available
to the borrower regardless of whether the borrower accepts the program or plan.
A servicer shall not make the first notice or filing required by applicable law
for any judicial or non-judicial foreclosure process, and shall not move for
foreclosure judgment or order of sale or conduct a foreclosure sale, if a
borrower is performing pursuant to the terms of a payment forbearance program
or repayment plan offered pursuant to this paragraph (c)(2)(iii). A servicer
may offer a short-term payment forbearance program in conjunction with a
short-term repayment plan pursuant to this paragraph (c)(2)(iii).
(iv)
Facially complete application.
A loss mitigation application shall be considered facially complete
when a borrower submits all the missing documents and information as stated in
the notice required under paragraph (b)(2)(i)(B) of this section, when no
additional information is requested in such notice, or once the servicer is
required to provide the borrower a written notice pursuant to paragraph
(c)(3)(i) of this section. If the servicer later discovers that additional
information or corrections to a previously submitted document are required to
complete the application, the servicer must promptly request the missing
information or corrected documents and treat the application as complete for
the purposes of paragraphs (f)(2) and (g) of this section until the borrower is
given a reasonable opportunity to complete the application. If the borrower
completes the application within this period, the application shall be
considered complete as of the date it first became facially complete, for the
purposes of paragraphs (d), (e), (f)(2), (g), and (h) of this section, and as
of the date the application was actually complete for the purposes of this
paragraph (c). A servicer that complies with this paragraph (c)(2)(iv) will be
deemed to have fulfilled its obligation to provide an accurate notice under
paragraph (b)(2)(i)(B) of this section.
(v)
Certain COVID-19-related loss
mitigation options.
(A)
Notwithstanding subparagraph (i), a servicer may offer a borrower a loss
mitigation option based upon evaluation of an incomplete application, provided
that all of the following criteria are met:
(I) The loss mitigation option permits the
borrower to delay paying covered amounts until the mortgage loan is refinanced,
the mortgaged property is sold, the term of the mortgage loan ends or for a
mortgage loan insured by the Federal Housing Administration, the mortgage
insurance terminates. For purposes of this subclause, "covered amounts"
includes, without limitation, all principal and interest payments forborne
under a payment forbearance program made available to borrowers experiencing a
COVID-19-related hardship, including a payment forbearance program made under
section 4022 of the Coronavirus Economic Stabilization Act (15 U.S.C. §
9056) ; the term also includes, without
limitation, all other principal and interest payments that are due and unpaid
by a borrower experiencing a COVID-19-related hardship. For purposes of this
subclause, "the term of the mortgage loan" means the term of the mortgage loan
according to the obligation between the parties in effect when the borrower is
offered the loss mitigation option.
(II) Any amounts that the borrower may delay
paying as described in subclause (I) do not accrue interest; the servicer does
not charge any fee in connection with the loss mitigation option; and the
servicer waives all existing late charges, penalties, stop payment fees or
similar charges promptly upon the borrower's acceptance of the loss mitigation
option.
(III) The borrower's
acceptance of an offer made under this clause ends any pre-existing delinquency
on the mortgage loan.
(B)
Once the borrower accepts an offer made under clause (A), the servicer is not
required to comply with subsection (b)(1) or (2) with regard to any loss
mitigation application the borrower submitted prior to the servicer's offer of
the loss mitigation option described in clause (A).
(vi)
Certain COVID-19-related loan
modification options.
(A)
Notwithstanding subparagraph (i), a servicer may offer a borrower a loan
modification based upon evaluation of an incomplete application, provided that
all of the following criteria are met:
(I)
The loan modification extends the term of the loan by no more than 480 months
from the date the loan modification is effective and, for the entire modified
term, does not cause the borrower's monthly required principal and interest
payment to increase beyond the monthly principal and interest payment required
prior to the loan modification.
(II) If the loan modification permits the
borrower to delay paying certain amounts until the mortgage loan is refinanced,
the mortgaged property is sold, the loan modification matures or, for a
mortgage loan insured by the Federal Housing Administration, the mortgage
insurance terminates, those amounts do not accrue interest.
(III) The loan modification is made available
to borrowers experiencing a COVID-19-related hardship.
(IV) Either the borrower's acceptance of an
offer under this clause ends any preexisting delinquency on the mortgage loan
or the loan modification offered under this clause is designed to end any
preexisting delinquency on the mortgage loan upon the borrower satisfying the
servicer's requirements for completing a trial loan modification plan and
accepting a permanent loan modification.
(V) The servicer does not charge any fee in
connection with the loan modification, and the servicer waives all existing
late charges, penalties, stop payment fees or similar charges that were
incurred on or after March 1, 2020, promptly upon the borrower's acceptance of
the loan modification.
(B) Once the borrower accepts an offer made
under clause (A), the servicer is not required to comply with subsection (b)(1)
or (2) with regard to any loss mitigation application the borrower submitted
prior to the servicer's offer of the loan modification described in clause (A).
However, if the borrower fails to perform under a trial loan modification plan
offered under clause (A) or requests further assistance, the servicer must
immediately resume reasonable diligence efforts as required under subsection
(b)(1) with regard to any loss mitigation application the borrower submitted
prior to the servicer's offer of the trial loan modification plan and must
provide the borrower with the notice required under this clause with regard to
the most recent loss mitigation application the borrower submitted prior to the
servicer's offer of the loan modification described in clause (A), unless the
servicer has already provided such notice to the borrower.
(3)
Notice of complete
application.
(i) Except as provided
in paragraph (c)(3)(ii) of this section, within 5 days (excluding legal public
holidays, Saturdays, and Sundays) after receiving a borrower's complete loss
mitigation application, a servicer shall provide the borrower a written notice
that sets forth the following information:
(A)
That the loss mitigation application is complete;
(B) The date the servicer received the
complete application;
(C) That the
servicer expects to complete its evaluation within 30 days of the date it
received the complete application;
(D) That the borrower is entitled to certain
foreclosure protections because the servicer has received the complete
application, and, as applicable, either:
(I)
If the servicer has not made the first notice or filing required by applicable
law for any judicial or non-judicial foreclosure process, that the servicer
cannot make the first notice or filing required to commence or initiate the
foreclosure process under applicable law before evaluating the borrower's
complete application; or
(II) If
the servicer has made the first notice or filing required by applicable law for
any judicial or non-judicial foreclosure process, that the servicer has begun
the foreclosure process, and that the servicer cannot conduct a foreclosure
sale before evaluating the borrower's complete application;
(E) That the servicer may need
additional information at a later date to evaluate the application, in which
case the servicer will request that information from the borrower and give the
borrower a reasonable opportunity to submit it, the evaluation process may take
longer, and the foreclosure protections could end if the servicer does not
receive the information as requested; and
(F) That the borrower may be entitled to
additional protections under State or Federal law.
(ii) A servicer is not required to provide a
notice pursuant to paragraph (c)(3)(i) of this section if:
(A) The servicer has already provided the
borrower a notice under paragraph (b)(2)(i)(B) of this section informing the
borrower that the application is complete and the servicer has not subsequently
requested additional information or a corrected version of a previously
submitted document from the borrower pursuant to paragraph (c)(2)(iv) of this
section;
(B) The application was
not complete or facially complete more than 37 days before a foreclosure sale;
or
(C) The servicer has already
provided the borrower a notice regarding the application under paragraph
(c)(1)(ii) of this section.
(4)
Information not in the borrower's
control.
(i)
Reasonable
diligence. If a servicer requires documents or information not in the
borrower's control to determine which loss mitigation options, if any, it will
offer to the borrower, the servicer must exercise reasonable diligence in
obtaining such documents or information.
(ii)
Effect in case of delay.
(A)
(1) Except as provided in paragraph
(c)(4)(ii)(A)(2) of this section, a servicer must not deny a complete loss
mitigation application solely because the servicer lacks required documents or
information not in the borrower's control.
(2) If a servicer has exercised reasonable
diligence to obtain required documents or information from a party other than
the borrower or the servicer, but the servicer has been unable to obtain such
documents or information for a significant period of time following the 30-day
period identified in paragraph (c)(1) of this section, and the servicer, in
accordance with applicable requirements established by the owner or assignee of
the borrower's mortgage loan, is unable to determine which loss mitigation
options, if any, it will offer the borrower without such documents or
information, the servicer may deny the application and provide the borrower
with a written notice in accordance with paragraph (c)(1)(ii) of this section.
When providing the written notice in accordance with paragraph (c)(1)(ii) of
this section, the servicer must also provide the borrower with a copy of the
written notice required by paragraph (c)(4)(ii)(B) of this section.
(B) If a servicer is unable to
make a determination within the 30-day period identified in paragraph (c)(1) of
this section as to which loss mitigation options, if any, it will offer to the
borrower because the servicer lacks required documents or information from a
party other than the borrower or the servicer, the servicer must, within such
30-day period or promptly thereafter, provide the borrower a written notice,
informing the borrower:
(1) That the servicer
has not received documents or information not in the borrower's control that
the servicer requires to determine which loss mitigation options, if any, it
will offer to the borrower on behalf of the owner or assignee of the
mortgage;
(2) Of the specific
documents or information that the servicer lacks;
(3) That the servicer has requested such
documents or information; and
(4)
That the servicer will complete its evaluation of the borrower for all
available loss mitigation options promptly upon receiving the documents or
information.
(C) If a
servicer must provide a notice required by paragraph (c)(4)(ii)(B) of this
section, the servicer must not provide the borrower a written notice pursuant
to paragraph (c)(1)(ii) of this section until the servicer receives the
required documents or information referenced in paragraph (c)(4)(ii)(B)(2) of
this section, except as provided in paragraph (c)(4)(ii)(A)(2) of this section.
Upon receiving such required documents or information, the servicer must
promptly provide the borrower with the written notice pursuant to paragraph
(c)(1)(ii) of this section.
(d)
Denial of loan modification
options. If a borrower's complete loss mitigation application is
denied for any trial or permanent loan modification option available to the
borrower pursuant to paragraph (c) of this section, a servicer shall state in
the notice sent to the borrower pursuant to paragraph (c)(1)(ii) of this
section the specific reason or reasons for the servicer's determination for
each such trial or permanent loan modification option and, if applicable, that
the borrower was not evaluated on other criteria.
(e)
Borrower response.
(1)
In general. Subject to
paragraphs (e)(2)(ii) and (iii) of this section, if a complete loss mitigation
application is received 90 days or more before a foreclosure sale, a servicer
may require that a borrower accept or reject an offer of a loss mitigation
option no earlier than 14 days after the servicer provides the offer of a loss
mitigation option to the borrower. If a complete loss mitigation application is
received less than 90 days before a foreclosure sale, but more than 37 days
before a foreclosure sale, a servicer may require that a borrower accept or
reject an offer of a loss mitigation option no earlier than 7 days after the
servicer provides the offer of a loss mitigation option to the
borrower.
(2)
Rejection.
(i)
In
general. Except as set forth in paragraphs (e)(2)(ii) and (iii) of
this section, a servicer may deem a borrower that has not accepted an offer of
a loss mitigation option within the deadline established pursuant to paragraph
(e)(1) of this section to have rejected the offer of a loss mitigation
option.
(ii)
Trial Loan
Modification Plan. A borrower who does not satisfy the servicer's
requirements for accepting a trial loan modification plan, but submits the
payments that would be owed pursuant to any such plan within the deadline
established pursuant to paragraph (e)(1) of this section, shall be provided a
reasonable period of time to fulfill any remaining requirements of the servicer
for acceptance of the trial loan modification plan beyond the deadline
established pursuant to paragraph (e)(1) of this section.
(iii)
Interaction with appeal
process. If a borrower makes an appeal pursuant to paragraph (h) of
this section, the borrower's deadline for accepting a loss mitigation option
offered pursuant to paragraph (c)(1)(ii) of this section shall be extended
until 14 days after the servicer provides the notice required pursuant to
paragraph (h)(4) of this section.
(f)
Prohibition on foreclosure
referral.
(1)
Pre-foreclosure review period. A servicer shall not make the
first notice or filing required by applicable law for any judicial or
non-judicial foreclosure process unless:
(i) A
borrower's mortgage loan obligation is more than 120 days delinquent;
(ii) The foreclosure is based on a borrower's
violation of a due-on-sale clause; or
(iii) The servicer is joining the foreclosure
action of a superior or subordinate lienholder.
(2)
Application received before
foreclosure referral. If a borrower submits a complete loss mitigation
application during the pre-foreclosure review period set forth in paragraph
(f)(1) of this section or before a servicer has made the first notice or filing
required by applicable law for any judicial or non-judicial foreclosure
process, a servicer shall not make the first notice or filing required by
applicable law for any judicial or non-judicial foreclosure process unless:
(i) The servicer has sent the borrower a
notice pursuant to paragraph (c)(1)(ii) of this section that the borrower is
not eligible for any loss mitigation option and the appeal process in paragraph
(h) of this section is not applicable, the borrower has not requested an appeal
within the applicable time period for requesting an appeal, or the borrower's
appeal has been denied;
(ii) The
borrower rejects all loss mitigation options offered by the servicer;
or
(iii) The borrower fails to
perform under an agreement on a loss mitigation option.
(3)
Temporary Special COVID-19 Loss
Mitigation Procedural Safeguards.
(i)
In general. To give a
borrower a meaningful opportunity to pursue loss mitigation options, a servicer
must ensure that one of the procedural safeguards described in subparagraph
(ii) has been met before making the first notice or filing required by
applicable law for any judicial or non-judicial foreclosure process because of
a delinquency under paragraph (1)(i) if:
(A)
the borrower's mortgage loan obligation became more than 120 days delinquent on
or after March 1, 2020; and
(B) The
statute of limitations applicable to the foreclosure action being taken in the
laws of the state where the property securing the mortgage loan is located
expires on or after January 1, 2022.
(ii)
Procedural safeguards.
A procedural safeguard is met if any of the following apply:
(A)
Complete loss mitigation
application evaluated. The borrower submitted a complete loss
mitigation application, remained delinquent at all times since submitting the
application and paragraph (2) permitted the servicer to make the first notice
or filing required for foreclosure.
(B)
Abandoned property. The
property securing the mortgage loan is abandoned according to the laws of the
state or municipality where the property is located when the servicer makes the
first notice or filing required by applicable law for any judicial or
non-judicial foreclosure process.
(C)
Unresponsive borrower.
The servicer did not receive any communications from the borrower for at least
90 days before the servicer makes the first notice or filing required by
applicable law for any judicial or non-judicial foreclosure process and all of
the following conditions are met:
(I) The
servicer made good faith efforts to establish live contact with the borrower
after each payment due date, as required by
12 CFR
1024.39(a) (relating to Real
Estate Settlement Procedures Act (Regulation X)), during the 90-day period
before the servicer makes the first notice or filing required by applicable law
for any judicial or non-judicial foreclosure process.
(II) The servicer sent the written notice
required by 12 CFR
1024.39(b) at least 10 days
and no more than 45 days before the servicer makes the first notice or filing
required by applicable law for any judicial or non-judicial foreclosure
process.
(III) The servicer sent
all notices required by this section, as applicable, during the 90-day period
before the servicer makes the first notice or filing required by applicable law
for any judicial or non-judicial foreclosure process.
(IV) The borrower's forbearance program, if
applicable, ended at least 30 days before the servicer makes the first notice
or filing required by applicable law for any judicial or non-judicial
foreclosure process.
(iii)
Sunset date. This
subparagraph does not apply if a servicer makes the first notice or filing
required by applicable law for any judicial or non-judicial foreclosure process
on or after January 1, 2022.
(g)
Prohibition on foreclosure sale.
If a borrower submits a complete loss mitigation application after a
servicer has made the first notice or filing required by applicable law for any
judicial or non-judicial foreclosure process but more than 37 days before a
foreclosure sale, a servicer shall not move for foreclosure judgment or order
of sale, or conduct a foreclosure sale, unless:
(1) The servicer has sent the borrower a
notice pursuant to paragraph (c)(1)(ii) of this section that the borrower is
not eligible for any loss mitigation option and the appeal process in paragraph
(h) of this section is not applicable, the borrower has not requested an appeal
within the applicable time period for requesting an appeal, or the borrower's
appeal has been denied;
(2) The
borrower rejects all loss mitigation options offered by the servicer;
or
(3) The borrower fails to
perform under an agreement on a loss mitigation option.
(h)
Appeal process.
(1)
Appeal process required for loan
modification denials. If a servicer receives a complete loss
mitigation application 90 days or more before a foreclosure sale or during the
period set forth in paragraph (f) of this section, a servicer shall permit a
borrower to appeal the servicer's determination to deny a borrower's loss
mitigation application for any trial or permanent loan modification program
available to the borrower.
(2)
Deadlines. A servicer shall permit a borrower to make an
appeal within 14 days after the servicer provides the offer of a loss
mitigation option to the borrower pursuant to paragraph (c)(1)(ii) of this
section.
(3)
Independent
evaluation. An appeal shall be reviewed by different personnel than
those responsible for evaluating the borrower's complete loss mitigation
application.
(4)
Appeal
determination. Within 30 days of a borrower making an appeal, the
servicer shall provide a notice to the borrower stating the servicer's
determination of whether the servicer will offer the borrower a loss mitigation
option based upon the appeal and, if applicable, how long the borrower has to
accept or reject such an offer or a prior offer of a loss mitigation option. A
servicer may require that a borrower accept or reject an offer of a loss
mitigation option after an appeal no earlier than 14 days after the servicer
provides the notice to a borrower. A servicer's determination under this
paragraph is not subject to any further appeal.
(i)
Duplicative requests. A
servicer must comply with the requirements of this section for a borrower's
loss mitigation application, unless the servicer has previously complied with
the requirements of this section for a complete loss mitigation application
submitted by the borrower and the borrower has been delinquent at all times
since submitting the prior complete application.
(j)
Small servicer requirements.
A small servicer shall be subject to the prohibition on foreclosure
referral in paragraph (f)(1) of this section. A small servicer shall not make
the first notice or filing required by applicable law for any judicial or
non-judicial foreclosure process and shall not move for foreclosure judgment or
order of sale, or conduct a foreclosure sale, if a borrower is performing
pursuant to the terms of an agreement on a loss mitigation option.
(k)
Servicing transfers.
(1)
In general.
(i)
Timing of compliance.
Except as provided in paragraphs (k)(2) through (4) of this section, if a
transferee servicer acquires the servicing of a mortgage loan for which a loss
mitigation application is pending as of the transfer date, the transferee
servicer must comply with the requirements of this section for that loss
mitigation application within the timeframes that were applicable to the
transferor servicer based on the date the transferor servicer received the loss
mitigation application. All rights and protections under paragraphs (c) through
(h) of this section to which a borrower was entitled before a transfer continue
to apply notwithstanding the transfer.
(ii)
Transfer date defined.
For purposes of this paragraph (k), the transfer date is the date on which the
transferee servicer will begin accepting payments relating to the mortgage
loan, as disclosed on the notice of transfer of loan servicing pursuant to
§
59.5(b)(4)(iv)
(relating to mortgage servicing transfers).
(2)
Acknowledgment notices.
(i)
Transferee servicer
timeframes. If a transferee servicer acquires the servicing of a
mortgage loan for which the period to provide the notice required by paragraph
(b)(2)(i)(B) of this section has not expired as of the transfer date and the
transferor servicer has not provided such notice, the transferee servicer must
provide the notice within 10 days (excluding legal public holidays, Saturdays,
and Sundays) of the transfer date.
(ii)
Prohibitions. A
transferee servicer that must provide the notice required by paragraph
(b)(2)(i)(B) of this section under this paragraph (k)(2):
(A) Shall not make the first notice or filing
required by applicable law for any judicial or non-judicial foreclosure process
until a date that is after the reasonable date disclosed to the borrower
pursuant to paragraph (b)(2)(ii) of this section, notwithstanding paragraph
(f)(1) of this section. For purposes of paragraph (f)(2) of this section, a
borrower who submits a complete loss mitigation application on or before the
reasonable date disclosed to the borrower pursuant to paragraph (b)(2)(ii) of
this section shall be treated as having done so during the pre-foreclosure
review period set forth in paragraph (f)(1) of this section.
(B) Shall comply with paragraphs (c), (d),
and (g) of this section if the borrower submits a complete loss mitigation
application to the transferee or transferor servicer 37 or fewer days before
the foreclosure sale but on or before the reasonable date disclosed to the
borrower pursuant to paragraph (b)(2)(ii) of this section.
(3)
Complete loss
mitigation applications pending at transfer. If a transferee servicer
acquires the servicing of a mortgage loan for which a complete loss mitigation
application is pending as of the transfer date, the transferee servicer must
comply with the applicable requirements of paragraphs (c)(1) and (4) of this
section within 30 days of the transfer date.
(4)
Applications subject to appeal
process. If a transferee servicer acquires the servicing of a mortgage
loan for which an appeal of a transferor servicer's determination pursuant to
paragraph (h) of this section has not been resolved by the transferor servicer
as of the transfer date or is timely filed after the transfer date, the
transferee servicer must make a determination on the appeal if it is able to do
so or, if it is unable to do so, must treat the appeal as a pending complete
loss mitigation application.
(i)
Determining appeal. If a transferee servicer is required under
this paragraph (k)(4) to make a determination on an appeal, the transferee
servicer must complete the determination and provide the notice required by
paragraph (h)(4) of this section within 30 days of the transfer date or 30 days
of the date the borrower made the appeal, whichever is later.
(ii)
Servicer unable to determine
appeal. A transferee servicer that is required to treat a borrower's
appeal as a pending complete loss mitigation application under this paragraph
(k)(4) must comply with the requirements of this section for such application,
including evaluating the borrower for all loss mitigation options available to
the borrower from the transferee servicer. For purposes of paragraph (c) or
(k)(3) of this section, as applicable, such a pending complete loss mitigation
application shall be considered complete as of the date the appeal was received
by the transferor servicer or the transferee servicer, whichever occurs first.
For purposes of paragraphs (e) through (h) of this section, the transferee
servicer must treat such a pending complete loss mitigation application as
facially complete under paragraph (c)(2)(iv) as of the date it was first
facially complete or complete, as applicable, with respect to the transferor
servicer.
(5)
Pending loss mitigation offers. A transfer does not affect a
borrower's ability to accept or reject a loss mitigation option offered under
paragraph (c) or (h) of this section. If a transferee servicer acquires the
servicing of a mortgage loan for which the borrower's time period under
paragraph (e) or (h) of this section for accepting or rejecting a loss
mitigation option offered by the transferor servicer has not expired as of the
transfer date, the transferee servicer must allow the borrower to accept or
reject the offer during the unexpired balance of the applicable time
period.
The provisions of this § 59.13 amended under
7
Pa.C.S. §
6141(a)(2).
This section cited in 10 Pa. Code §
59.7 (relating to error resolution
procedures); 10 Pa. Code §
59.10 (relating to general
servicing policies, procedures, and requirements); and 10 Pa. Code §
59.12 (relating to continuity of
contact).