Mortgage Servicing (Delinquent Borrowers) Flashcards
What is the early intervention rule in mortgage servicing?
A rule requiring live contact by 36th day of delinquency and written notice by 45th day.
When must servicers establish live contact with delinquent borrowers?
By the 36th day of delinquency.
When must servicers provide written notice about loss mitigation?
By the 45th day of delinquency.
What does live contact mean in the context of delinquent borrowers?
Contact that gets a response, such as a phone call or meeting.
What information should the written loss mitigation notice include?
Contact details, description of loss mitigation options, and counseling resources.
When should a modified notice be provided for delinquent borrowers in bankruptcy?
Within 45 days of bankruptcy filing or 45 days after first delinquency.
How long should staff assist delinquent borrowers under loss mitigation?
Until borrower makes two timely consecutive payments under the agreement.
What is the purpose of a model loss mitigation notice?
To encourage delinquent borrowers to contact servicers and learn about options.
What options may a servicer suggest in a loss mitigation notice?
Refinance, loan modification, payment forbearance, or selling the home.
Where can borrowers find information about housing counselors?
Through CFPB or HUD websites and toll-free numbers.
What does the written notice exemption flow chart provide?
Guidance on exemptions for written notices under Regulation X and Z.
What does cease communication mean under the FDCPA?
Servicers must stop contacting a debtor upon written request.
When is a borrower considered delinquent?
As soon as a payment is not made on the due date.
What is early intervention?
Requirement for early advice to delinquent borrowers to avoid foreclosure.
What does FDCPA stand for and what does it regulate?
Fair Debt Collection Practices Act, regulating third-party debt collector behavior.
