If a servicer withholds documents relied upon because it has determined that such documents constitute confidential, proprietary or privileged information, the servicer must notify the borrower of its determination in writing within 15 days (excluding legal public holidays, Saturdays, and Sundays) of receipt of the borrower's request for such documents. See interpretation of 41(c)(4)(i) Diligence requirements. If a borrower has not obtained an approved short sale transaction at the end of any marketing or listing period, a servicer may determine that a borrower has failed to perform under an agreement on a loss mitigation option. Such documents may include documents reflecting information entered in a servicer's collection system. Information not in the borrower's control. A transferee servicer may be unable to make a determination on an appeal when, for example, the transferor servicer denied a borrower for a loan modification option that the transferee servicer does not offer or when the transferee servicer receives the mortgage loan through an involuntary transfer and the transferor servicer failed to maintain proper records such that the transferee servicer lacks sufficient information to review the appeal. RESPA is an existing enterprise solution that meets Regulatory & SCM Requirements for Life Science vertical. 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. In this circumstance, a reasonable date may occur less than 30 days, but not less than seven days, after the date the transferee servicer provides the written notice pursuant to 1024.41(b)(2)(i)(B). Implementation requires a servicer to renew the borrower's hazard insurance regardless of escrow funds availability or stage of delinquency, unless they receive a cancellation notice for reasons other than non-payment of premium, or if the property is known to be vacant. in Supplement I. in Supplement I. 1. ii. (v) Certain COVID-19-related loss mitigation options. 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. In the course of gathering documents and information from a borrower to complete a loss mitigation application, a servicer may stop collecting documents and information for a particular loss mitigation option after receiving information confirming that, pursuant to any requirements established by the owner or assignee of the borrower's mortgage loan, the borrower is ineligible for that option. The prohibition on a servicer moving for judgment or order of sale includes making a dispositive motion for foreclosure judgment, such as a motion for default judgment, judgment on the pleadings, or summary judgment, which may directly result in a judgment of foreclosure or order of sale. 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. 3. First notice or filing. Official interpretation of Paragraph 41(b)(2)(i)(B). (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. The transfer date is not necessarily the same date as either the effective date of the transfer of servicing as disclosed on the notice of transfer of loan servicing pursuant to 1024.33(b)(4)(i) or the sale date identified in a servicing transfer agreement. A servicer is not required to comply with the requirements of paragraphs (d), (e), and (i) of this section if the servicer reasonably determines that any of the following apply: See interpretation of 35(g)(1) In general. Comment for 1024.32 - General Disclosure Requirements. 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. Examples of overbroad notices of error. The act requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures regarding the nature and costs of the real estate settlement process. (However, if you requested the identity, address, or other contact information for the owner of your mortgage loan, the servicer must respond within ten business days.). Making a QWR Under RESPA | RESPA Violations and Foreclosure | AllLaw Official interpretation of 41(b) Receipt of a loss mitigation application. 1024.41 Loss mitigation procedures. | Consumer Financial Protection Official interpretation of 41(c)(2)(i) In general. Section 1024.41(c)(4)(ii)(A)(2) permits a servicer to deny a complete loss mitigation application (in accordance with applicable investor requirements) if, after exercising reasonable diligence to obtain the required documents or information from a party other than the borrower or the servicer, the servicer has been unable to obtain such documents or information for a significant period of time and the servicer cannot complete its determination without the required documents or information. 1024.33 Mortgage servicing transfers. in Supplement I. Where a servicer violates RESPAs standards, a borrower may be entitled to recover actual damages, extra damages up to $2,000 (if there is a pattern or practice of servicer noncompliance), and attorneys fees and costs. The notice shall include a statement that the borrower must use the established address to assert an error. 2. Official interpretation of 41(c)(2)(iv) Facially complete application. 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. 2. See interpretation of 41(c)(2)(iv) Facially complete application. (11) Any other error relating to the servicing of a borrower's mortgage loan. (4) Either the borrowers acceptance of an offer pursuant to paragraph (c)(2)(vi)(A) of this section ends any preexisting delinquency on the mortgage loan or the loan modification offered pursuant to paragraph (c)(2)(vi)(A) of this section is designed to end any preexisting delinquency on the mortgage loan upon the borrower satisfying the servicers requirements for completing a trial loan modification plan and accepting a permanent loan modification. RESPA requires the servicer to react to your QWR within certain time frames. Near the end of a short-term payment forbearance program offered based on an evaluation of an incomplete loss mitigation application pursuant to 1024.41(c)(2)(iii), and prior to the end of the forbearance period, if the borrower remains delinquent, a servicer must contact the borrower to determine if the borrower wishes to complete the loss mitigation application and proceed with a full loss mitigation evaluation. in Supplement I, (2) Review of loss mitigation application submission , See interpretation of 41(b)(2)Review of loss mitigation application submission. (a) Notice of error. A notice of error is submitted by a borrower if the notice of error is submitted by an agent of the borrower. . For example, if an owner or assignee has limited a pilot program to a certain geographic area or to a limited number of participants, and the servicer determines that a borrower is not eligible based on any such requirement, the servicer shall inform the borrower that the investor requirement for the program is the basis for the denial. 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. For example, if you tell the servicer you believe it made a mistake on the account but dont describe that mistake and ask for all of the servicers data on your account, the servicer is unlikely to react. In such circumstances, 1024.41(c)(3) requires the transferee servicer to provide a notice of complete application that discloses the date the transferor servicer received the documents and information constituting the complete application. in Supplement I. A servicer shall not charge a fee, or require a borrower to make any payment that may be owed on a borrower's account, as a condition of responding to a notice of error. Under 1024.41(i), a servicer must comply with 1024.41 with respect to a loss mitigation application unless the servicer has previously done so 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. For example, if a borrower is less than 50 days before a foreclosure sale, an application remaining incomplete for 15 days may be a more significant period of time under the circumstances than if the borrower is still less than 120 days delinquent on a mortgage loan obligation. 1. A small servicer shall be subject to the prohibition on foreclosure referral in paragraph (f)(1) of this section. 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. RESPA Flashcards | Quizlet Service Provider Requirements: Information or Error Correction. Read More. For purposes of 1024.41(b)(2)(ii), subject to the restriction described in comment 41(b)(2)(ii)-3, the reasonable date must be no later than the earliest of: i. At a minimum and without limitation, a servicer must request such documents or information from the appropriate party: i. If a servicer establishes an address that a borrower must use to assert an error, a servicer must provide that address to the borrower in the following contexts: i. A statement that the denial of a loan modification option is based on an investor requirement, without additional information specifically identifying the relevant investor or guarantor and the specific applicable requirement, is insufficient. If a servicer complies with the requirements of 1024.41 for a complete loss mitigation application submitted by a potential successor in interest before confirming that person's identity and ownership interest in the property, 1024.41(i)'s limitation on duplicative requests applies to that person, provided the servicer's evaluation of loss mitigation options available to the person would not have resulted in a different determination due to the person's confirmation as a successor in interest if it had been conducted after the servicer confirmed the person's status as a successor in interest. Assume applicable requirements established by the owner or assignee of the mortgage loan provide that a borrower is ineligible for home retention loss mitigation options if the borrower states a preference for a short sale and provides evidence of another applicable hardship, such as military Permanent Change of Station orders or an employment transfer more than 50 miles away. (7) Failure to provide accurate information to a borrower regarding loss mitigation options and foreclosure, as required by 1024.39. 1 / 29 Flashcards Learn Test Match Created by bayleemccann ABA 2021 Terms in this set (29) Riley's manager had a reasonable basis to believe Ms. Hamilton had failed to maintain hazard insurance and directed Riley to start the force placement procedures. Examples of inquiries that are not applications. See interpretation of 41(k)(2)(ii) Prohibitions. A transferee servicer is not required to provide notices under 1024.41 with respect to a particular loss mitigation application that the transferor servicer provided prior to the transfer. If an application was complete with respect to the transferor servicer, but is not complete with respect to the transferee servicer, the transferee servicer must treat the application as facially complete under 1024.41(c)(2)(iv) as of the date the application was complete with respect to the transferor servicer. If the servicer does not receive the borrower's payment within . ii. in Supplement I. ii. A servicer offers a borrower a short-term payment forbearance program or a short-term repayment plan based on an evaluation of an incomplete loss mitigation application and provides the borrower the written notice pursuant to 1024.41(c)(2)(iii). Such a letter may constitute an information request under 1024.36(a) that triggers an obligation by the servicer to provide an annual escrow statement. Official interpretation of Paragraph 35(g)(1)(ii). Section 1024.41(k)(1)(ii) provides that 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 1024.33(b)(4)(iv). Applications first complete upon transfer. 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. c. Compare, contrast, and discuss the amount of dividends (calculated in part b) associated with each of the three capital expenditure amounts. Official interpretation of 41(k)(1)(i) Timing of compliance. 2. 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. However, an error relating to the failure to transfer accurately and timely information relating to the servicing of a borrower's mortgage loan account to a transferee servicer is an error for purposes of 1024.35. When 1024.41(k)(2)(i) applies, however, the transferee servicer may sometimes provide the notice after the date that is 38 days before a foreclosure sale. (b) Receipt of a loss mitigation application . A short-term repayment plan for purposes of 1024.41(c)(2)(iii) allows for the repayment of no more than three months of past due payments and allows a borrower to repay the arrearage over a period lasting no more than six months. in Supplement I. 1024.34 Timely escrow payments and treatment of escrow account balances. 2. The notice to the borrower shall set forth the basis under paragraph (g)(1) of this section upon which the servicer has made such determination. Internet intake of notices of error. 2. 1024.14 Prohibition against kickbacks and unearned fees. (1) In general. in Supplement I. (1) Early correction. See interpretation of 41(b)(1) Complete loss mitigation application. Official interpretation of 41(c)(4) Information not in the borrower's control. 3. A servicer complies with 1024.41(c)(3)(i)(B) by disclosing on the notice the most recent date the servicer received the complete loss mitigation application. An application that was facially complete under 1024.41(c)(2)(iv) with respect to the transferor servicer remains facially complete under 1024.41(c)(2)(iv) with respect to the transferee servicer as of the date it was facially complete with respect to the transferor servicer. Reasonable date when no milestones remain. Learn more about MAO's history in Supplement I. When a servicer is required to comply with the requirements of 1024.41 for such a subsequent loss mitigation application, the servicer must comply with all applicable requirements of 1024.41. Requests for Information If a servicer receives a loss mitigation application from a potential successor in interest before confirming that person's identity and ownership interest in the property, the servicer may, but need not, review and evaluate the loss mitigation application in accordance with the procedures set forth in 1024.41. 1. A transferee servicer and a transferor servicer, however, are not the same servicer. An approved short sale transaction is a short sale transaction that has been approved by all relevant parties, including the servicer, other affected lienholders, or insurers, if applicable, and the servicer has received proof of funds or financing, unless circumstances otherwise indicate that an approved short sale transaction is not likely to occur. Applicability of loss mitigation provisions. (i) In general. Third-party delay. For example, if the procedural safeguards are met due to an unresponsive borrower determination as described in 1024.41(f)(3)(ii)(C), the servicer must maintain records demonstrating that the servicer did not receive communications from the borrower during the relevant time period and that all four elements of 1024.41(f)(3)(ii)(C) were met. For example, a servicer may designate an address to receive notices of error for borrowers located in California and a separate address to receive notices of errors for borrowers located in Texas. (ii) Overbroad notice of error. For purposes of 1024.41(c) through (h), a transferee servicer must consider documents and information that constitute a complete loss mitigation application for the transferee servicer to have been received as of the date such documents and information were received by the transferor servicer, even if such documents and information were received by the transferor servicer after the transfer date. A servicer has received a communication from the borrower if the communication is from an agent of the borrower. 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). A transferee servicer that must provide the notice required by paragraph (b)(2)(i)(B) of this section under this paragraph (k)(2): 1. Consequently, the transferee servicer must comply with the applicable requirements of 1024.41(c)(1) and (4) within 30 days of the transfer date. Section 1024.41(c)(2)(iv) requires a servicer to treat a facially complete application as complete for the purposes of paragraphs (f)(2) and (g) until the borrower has been given a reasonable opportunity to complete the application. A borrower is deemed to be performing under an agreement on a short sale, or other similar loss mitigation option, during the term of a marketing or listing period. New and material information means information that was not reviewed by the servicer in connection with investigating a prior notice of the same error and is reasonably likely to change the servicer's prior determination about the error. Section 1024.41(c)(3)(i)(D)(1) and (2) sets forth different requirements depending on whether the servicer has made the first notice or filing under applicable law for any judicial or non-judicial foreclosure process at the time the borrower submits a complete loss mitigation application. Assertions of errors in a form that is not reasonably understandable or is included with voluminous tangential discussion or requests for information, such that a servicer cannot reasonably identify from the notice of error any error for which 1024.35 requires a response. Mortgage Servicing Rules under the Real Estate Settlement Procedures Act (Regulation X) AGENCY: Bureau of Consumer Financial Protection. 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. Section 1024.41(k)(2)(ii)(A) prohibits a servicer from making 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 1024.41(b)(2)(ii), notwithstanding 1024.41(f)(1). When this occurs, the transferee servicer must determine the reasonable date when none of the four specified milestones remain. 1024.35 Error resolution procedures. - Consumer Financial Protection (F) That the borrower may be entitled to additional protections under State or Federal law. (B) Conducting a reasonable investigation and providing the borrower with a written notification that includes a statement that the servicer has determined that no error occurred, a statement of the reason or reasons for this determination, a statement of the borrower's right to request documents relied upon by the servicer in reaching its determination, information regarding how the borrower can request such documents, and contact information, including a telephone number, for further assistance. See interpretation of 41(b)(2)(ii) Time period disclosure. If a servicer's systems establish a hierarchy of eligibility criteria and reach the first criterion that causes a denial but do not evaluate the borrower based on additional criteria, a servicer complies with the rule by providing only the reason or reasons with respect to which the borrower was actually evaluated and rejected as well as notification that the borrower was not evaluated on other criteria. Real Estate Settlement Procedures Act (Regulation X) | NCUA
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