Mod 5-7 - Loss Mit

Question 1

What is a borrower solicitation package? What does it include?

Answer 1

A borrower solicitation package is a set of documents provided by the servicer to the borrower who is in default or facing financial hardship with the goal of offering available solutions that will aid the borrower in avoiding default or foreclosure as well as providing a clear understanding of the available options.

It includes:
* Borrower solicitation letter (Form 745)
* Mortgage Assistance Application (Form 710)

Question 2

What is a complete Borrower Response Package (BRP)?

Answer 2

• completed MAAp (Form 710)
• evidence of hardship
• supporting income documentation for all borrowers on the note within 90 days of when the first BRP was submitted
• Form 4506C Request for Transcript of Tax Returns

Question 3

Must a servicer receive a complete BRP to evaluate a borrower for loss mitigation options? Please describe?

Answer 3

No. If they receive sufficient documentation to evaluate a borrower for loss mitigation options they should do so.

Question 4

When the subservicer has not obtained QRPC by when must the subservicer send the delinquent borrower a Borrower’s Solicitation Letter/Package if not sent before?

Answer 4

Day 45 of delinquency

Question 5

Explain what dual tracking is. Can the servicer practice dual tracking?

Answer 5

Dual tracking occurs when the subservicer continues to foreclose on a borrower’s home while considering a loan for loss mitigation or loan modification.

No

Question 6

What is the criteria for imminent default

Answer 6

• the loan must be current or less than 60 days delinquent as of the evaluation date
• subject property is occupied as a principal residence by at least one borrower; cannot be investment or 2nd home
• the borrower submits a complete BRP
• the borrower’s non-retirement cash reserves are less than $25,000 based on the MAAp provided
• the borrower has a hardship as documented in the MAAp

Question 7

Is it appropriate that the person deciding the loss mitigation review the case upon appeal by the borrower?

Answer 7

No, it must be reviewed by someone who wasn’t responsible for the initial evaluation decision

Question 8

What are the appeal rights of a borrower when the servicer receives the first complete BRP 89 days prior to the foreclosure sale?

Answer 8

The borrower does not have appeal rights but the servicer will still decision the package

Question 9

Name all of the Loss Mitigation Retention Options

Answer 9

• forbearancem
• reinstateemnt
• repayment plan
• payment deferral / disaster paymenty deferrral / COVID 19 payment deferral
• loan modification