A Hot Topic Gets Hotter
BY JONATHAN KOLODZIEJ, ESQ.
XZNEW MORTGAGE SERVICING RULES
THE 2016 FINAL RULE amended Regulation X’s loss mitigation procedures, imposing additional obligations that may be entirely new to mortgage servicers. For example, in the short-term forbearance and repayment
context (where there previously was little guidance and structure),
servicers are required to send a written notice confirming the terms of
any short-term plan that is offered to a borrower. Servicers also now
have specific procedures to follow in the area of loss mitigation if and
when 1) all required loss mitigation documentation and information
in a borrower’s control has been received, but 2) information needed
from a third party is missing.