(a) Live contact. Except as otherwise provided in this section, a servicer shall establish
or make good faith efforts to establish live contact with a delinquent
borrower no later than the 36th day of a borrower's delinquency and
again no later than 36 days after each payment due date so long as
the borrower remains delinquent. Promptly after establishing live
contact with a borrower, the servicer shall inform the borrower about
the availability of loss mitigation options, if appropriate, and take
the actions described in paragraph (e) of this section, if applicable.
(b) Written notice.
(1) Notice required. Except as otherwise provided in this section,
a servicer shall provide to a delinquent borrower a written notice
with the information set forth in paragraph (b)(2) of this section
no later than the 45th day of the borrower’s delinquency and
again no later than 45 days after each payment due date so long as
the borrower remains delinquent. A servicer is not required to provide
the written notice, however, more than once during any 180-day period.
If a borrower is 45 days or more delinquent at the end of any 180-day
period after the servicer has provided the written notice, a servicer
must provide the written notice again no later than 180 days after
the provision of the prior written notice. If a borrower is less than
45 days delinquent at the end of any 180-day period after the servicer
has provided the written notice, a servicer must provide the written
notice again no later than 45 days after the payment due date for
which the borrower remains delinquent.
(2) Content of
the written notice. The notice required by paragraph (b)(1) of
this section shall include:
(i) A statement encouraging the borrower
to contact the servicer;
(ii) The telephone number to access
servicer personnel assigned pursuant to section 1024.40(a) and the
servicer’s mailing address;
(iii) If applicable, a statement providing
a brief description of examples of loss mitigation options that may
be available from the servicer;
(iv) If applicable, either application
instructions or a statement informing the borrower how to obtain more
information about loss mitigation options from the servicer; and
(v) The Web site to
access either the Bureau list or the HUD list of homeownership counselors
or counseling organizations, and the HUD toll-free telephone number
to access homeownership counselors or counseling organizations.
(3) Model clauses. Model clauses MS-4(A), MS-4(B),
and MS-4(C), in appendix MS-4 to this part may be used to comply with
the requirements of this paragraph (b).
(c) Borrowers in bankruptcy.
(1) Partial exemption. While any borrower on a mortgage loan is a debtor in bankruptcy
under title 11 of the United States Code, a servicer, with regard
to that mortgage loan:
(i) Is exempt from the requirements
of paragraph (a) of this section;
(ii) Is exempt from the requirements
of paragraph (b) of this section if no loss mitigation option is available,
or if any borrower on the mortgage loan has provided a notification
pursuant to the Fair Debt Collection Practices Act (FDCPA) section
805(c) (15 U.S.C. 1692c(c)) with respect to that mortgage loan as
referenced in paragraph (d) of this section; and
(iii) If the conditions of paragraph
(c)(1)(ii) of this section are not met, must comply with the requirements
of paragraph (b) of this section, as modified by this paragraph (c)(1)(iii):
(A) If a borrower is delinquent when the borrower becomes a debtor
in bankruptcy, a servicer must provide the written notice required
by paragraph (b) of this section not later than the 45th day after
the borrower files a bankruptcy petition under title 11 of the United
States Code. If the borrower is not delinquent when the borrower files
a bankruptcy petition, but subsequently becomes delinquent while a
debtor in bankruptcy, the servicer must provide the written notice
not later than the 45th day of the borrower’s delinquency. A
servicer must comply with these timing requirements regardless of
whether the servicer provided the written notice in the preceding
180-day period.
(B) The
written notice required by paragraph (b) of this section may not contain
a request for payment.
(C) A servicer is not required to provide the written notice required
by paragraph (b) of this section more than once during a single bankruptcy
case.
(2) Resuming
compliance.
(i) Except as provided in paragraph
(c)(2)(ii) of this section, a servicer that was exempt from paragraphs
(a) and (b) of this section pursuant to paragraph (c)(1) of this section
must resume compliance with paragraphs (a) and (b) of this section
after the next payment due date that follows the earliest of the following
events:
(A) The bankruptcy case is dismissed;
(B) The bankruptcy case is closed;
and
(C) The borrower reaffirms
personal liability for the mortgage loan.
(ii) With respect to a
mortgage loan for which the borrower has discharged personal liability
pursuant to 11 U.S.C. 727, 1141, 1228, or 1328, a servicer:
(A) Is not required
to resume compliance with paragraph (a) of this section; and
(B) Must resume compliance with
paragraph (b) of this section if the borrower has made any partial
or periodic payment on the mortgage loan after the commencement of
the borrower’s bankruptcy case.
(d) Fair Debt
Collection Practices Act—partial exemption. With regard
to a mortgage loan for which any borrower has provided a notification
pursuant to the Fair Debt Collection Practices Act (FDCPA) section
805(c) (15 U.S.C. 1692c(c)), a servicer subject to the FDCPA with
respect to that borrower’s loan:
(1) Is exempt from the requirements of
paragraph (a) of this section;
(2) Is exempt from the requirements of
paragraph (b) of this section if no loss mitigation option is available,
or while any borrower on that mortgage loan is a debtor in bankruptcy
under title 11 of the United States Code as referenced in paragraph
(c) of this section; and
(3) If the conditions of paragraph (d)(2) of this section are not
met, must comply with the requirements of paragraph (b) of this section,
as modified by this paragraph (d)(3):
(i) In
addition to the information required pursuant to paragraph (b)(2)
of this section, the written notice must include a statement that
the servicer may or intends to invoke its specified remedy of foreclosure.
Model clause MS-4(D) in appendix MS-4 to this part may be used to
comply with this requirement.
(ii) The written notice may not contain
a request for payment.
(iii) A servicer is prohibited from providing the written notice
more than once during any 180-day period. If a borrower is 45 days
or more delinquent at the end of any 180-day period after the servicer
has provided the written notice, a servicer must provide the written
notice again no later than 190 days after the provision of the prior
written notice. If a borrower is less than 45 days delinquent at the
end of any 180-day period after the servicer has provided the written
notice, a servicer must provide the written notice again no later
than 45 days after the payment due date for which the borrower remains
delinquent or 190 days after the provision of the prior written notice,
whichever is later.
(e) Temporary COVID-19-related live contact. Until October 1, 2022, in complying with the requirements described
in paragraph (a) of this section, promptly after establishing live
contact with a borrower the servicer shall take the following actions:
(1) Borrowers not in forbearance programs at the time of live contact. At the time the servicer establishes live contact pursuant to paragraph
(a) of this section, if the borrower is not in a forbearance program
and the owner or assignee of the borrower's mortgage loan makes a
forbearance program available to borrowers experiencing a COVID-19-related
hardship, the servicer shall inform the borrower of the following
information:
(i)
That forbearance programs are available for borrowers experiencing
a COVID-19-related hardship and, unless the borrower states that they
are not interested in receiving information about such programs, the
servicer shall list and briefly describe to the borrower any such
forbearance programs made available at that time and the actions the
borrower must take to be evaluated for such forbearance programs.
(ii) At least one way that the
borrower can find contact information for homeownership counseling
services, such as referencing the borrower's periodic statement.
(2) Borrowers in forbearance programs at the time
of live contact. If the borrower is in a forbearance program
made available to borrowers experiencing a COVID-19-related hardship,
during the live contact established pursuant to paragraph (a) of this
section that occurs at least 10 days and no more than 45 days before
the scheduled end of the forbearance program or, if the scheduled
end date of the forbearance program occurs between August 31, 2021
and September 10, 2021, during the first live contact made pursuant
paragraph (a) of this section after August 31, 2021, the servicer
shall inform the borrower of the following information:
(i) The date the borrower's current
forbearance program is scheduled to end;
(ii) A list and brief description of
each of the types of forbearance extension, repayment options, and
other loss mitigation options made available to the borrower by the
owner or assignee of the borrower's mortgage loan at the time of the
live contact, and the actions the borrower must take to be evaluated
for such loss mitigation options; and
(iii) At least one way that the borrower
can find contact information for homeownership counseling services,
such as referencing the borrower's periodic statement.
