(a) Enforcement and limitations. A borrower may enforce the provisions
of this section pursuant to section 6(f) of RESPA (12 U.S.C. 2605(f)).
Nothing in section 1024.41 imposes a duty on a servicer to provide
any borrower with any specific loss mitigation option. Nothing in
section 1024.41 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
paragraph (c)(2)(i) of this section, 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:
(1) 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 paragraph (c)(2)(v)(A)(1), “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 pursuant to the Coronavirus Economic Stabilization Act,
section 4022 (15 U.S.C. 9056); it 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 paragraph (c)(2)(v)(A)(1), “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.
(2) Any amounts that the borrower may delay paying as described
in paragraph (c)(2)(v)(A)(1) of this section 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.
(3) The borrower’s
acceptance of an offer made pursuant to paragraph (c)(2)(v)(A) of
this section ends any preexisting delinquency on the mortgage loan.
(B) Once the
borrower accepts an offer made pursuant to paragraph (c)(2)(v)(A)
of this section, the servicer is not required to comply with paragraph
(b)(1) or (2) of this section with regard to any loss mitigation application
the borrower submitted prior to the servicer’s offer of the
loss mitigation option described in paragraph (c)(2)(v)(A) of this
section.
(vi) Certain
COVID-19-related loan modification options.
(A) Notwithstanding
paragraph (c)(2)(i) of this section, 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:
(1) 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.
(2) 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.
(3) The loan modification
is made available to borrowers experiencing a COVID-19-related hardship.
(4) Either the borrower’s
acceptance of an offer pursuant to this paragraph (c)(2)(vi)(A) ends
any preexisting delinquency on the mortgage loan or the loan modification
offered pursuant to this paragraph (c)(2)(vi)(A) 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.
(5) 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
pursuant to paragraph (c)(2)(vi)(A) of this section, the servicer
is not required to comply with paragraph (b)(1) or (2) of this section
with regard to any loss mitigation application the borrower submitted
prior to the servicer’s offer of the loan modification described
in paragraph (c)(2)(vi)(A) of this section. However, if the borrower
fails to perform under a trial loan modification plan offered pursuant
to paragraph (c)(2)(vi)(A) of this section or requests further assistance,
the servicer must immediately resume reasonable diligence efforts
as required under paragraph (b)(1) of this section 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 by paragraph (b)(2)(i)(B)
of this section with regard to the most recent loss mitigation application
the borrower submitted prior to the servicer’s offer of the
loan modification described in paragraph (c)(2)(vi)(A) of this section,
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:
(1) 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
(2) 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 paragraph (f)(3)(ii)
of this section 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 (f)(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:
(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
(f)(2) of this section 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; or
(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:
(1) The servicer
made good faith efforts to establish live contact with the borrower
after each payment due date, as required by section 1024.39(a), during
the 90-day period before the servicer makes the first notice or filing
required by applicable law for any judicial or nonjudicial foreclosure
process;
(2) The
servicer sent the written notice required by section 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;
(3) 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; and
(4) 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 paragraph (f)(3) does
not apply if a servicer makes the first notice or filing required
by applicable law for any judicial or nonjudicial 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 determina tion 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 section 1024.33(b)(4)(iv).
(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.
