Current through Register Vol. 24-18, September 15, 2024
(1) The obligation to assign an individual
servicer representative with the information and authority to answer questions
and resolve disputes and to act as a single point of contact for the homeowner
during loss mitigation attaches when the borrower requests loss mitigation.
This individual servicer representative must have the authority and ability to
perform the following duties:
(a) Explain
loss mitigation options and requirements;
(b) Track documents submitted by the
homeowner and documents provided to the homeowner;
(c) Inform the homeowner of the status of
their loss mitigation process;
(d)
Ensure the homeowner is considered for all loss mitigation options;
and
(e) Access individuals with the
authority to delay or stop foreclosure proceedings.
(2) You must comply with all timelines and
requirements for the federal HAMP or GSE modification programs if applicable,
including denials and dual tracking prohibitions. For any modification program,
you must:
(a) Develop an electronic system, or
add to an existing system, the ability for borrowers to check the status of
their loan modification, at no cost. The system must also allow communication
from housing counselors. The system must be updated every ten business
days.
(b) Review and make a
determination on a borrower's completed loan modification application within
thirty days of receipt.
(c) Provide
in the loan modification denial notice the reasons for denial and an
opportunity for the homeowner to rebut the denial within thirty days. If the
denial is due to the terms of an agreement between you and an investor, you
must provide the name of the investor and a summary of the reason for the
denial. If the denial is based on a net present value (NPV) model, you must
provide the data inputs used to determine the NPV. Any loan modification
denials must be reviewed internally by an independent evaluation process within
thirty days of the denial determination or the mailing of the notice of denial
to the borrower, whichever occurs earlier. See subsection (3) of this section
for additional requirements on borrower appeals.
(d) Review and consider any complete loan
modification application before referring a delinquent loan to
foreclosure.
(e) Give a homeowner
ten business days from your notice to them to correct any deficiencies in their
loan modification application.
(f)
Stop the foreclosure from proceeding further if you receive a complete loan
modification application. See (h) and (i) of this subsection.
(g) If the borrower accepts a loan
modification verbally, in writing, or by making the first trial payment, you
must suspend the foreclosure proceeding until such time as the borrower may
fail to perform the terms of the loan modification.
(h) Review and consider a complete loan
modification application if received prior to thirty-seven days before a
scheduled foreclosure sale. If you offer the borrower a loan modification, you
must delay a pending foreclosure sale to provide the borrower with fourteen
days in which to accept or deny the loan modification offer. If the borrower
accepts a loan modification, you must suspend the foreclosure proceeding until
such time as the borrower may fail to perform the terms of the loan
modification.
(i) Perform an
expedited review of any complete loan modification application submitted
between thirty-seven and fifteen days before the scheduled foreclosure sale. If
you offer the borrower a loan modification, you must delay a pending
foreclosure sale to provide the borrower with fourteen days in which to accept
or deny the loan modification offer. If the borrower accepts a loan
modification, you must suspend the foreclosure proceeding until such time as
the borrower may fail to perform the terms of the loan modification.
(3) As to borrower appeals of loan
modification denials you must:
(a) Give the
borrower thirty days from your written notice of denial to request an appeal
unless the denial is due to:
(i) An ineligible
mortgage;
(ii) An ineligible
property;
(iii) The borrower did
not accept the offer; or
(iv) The
loan was previously modified.
(b) Give the borrower the opportunity to
obtain a full appraisal for purposes of contesting appraisal data used in a
denial based on NPV.
(c) Respond to
the borrower's appeal within thirty days of receipt.
(d) Provide the borrower with a description
of any other loss mitigation option available if you uphold the
denial.
(4) When a loan
modification is granted, you must provide the borrower with a copy of the fully
executed loan modification agreement within thirty days of receipt of the
signed agreement from the borrower. A loan modification granted orally must be
reduced to a written document with a summary of all of the terms and must be
provided to the borrower within thirty days of approval of the loan
modification.
(5) If a loan payment
forbearance is granted, you must provide the borrower with, at a minimum, a
confirming letter of approval. The letter must contain the essential terms of
the forbearance and must contain the name and contact information of specialist
who is the borrower's primary or contact with the company.
(6) You must maintain adequate staffing
levels and systems to comply with this section, including staffing and systems
to track and maintain loan modification documents submitted by
homeowners.
(7) You must make
public all necessary information to inform homeowners about and allow
homeowners to apply for your proprietary first and second lien
modifications.
(8) You must make
public all necessary information to inform homeowners about your short sale
requirements.
(9) You must allow a
homeowner to apply for and receive a short sale determination before the
homeowner puts a house on the market.
