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Requirements for Loss Mitigation Application Notice
Tuesday, November 8, 2016 6:45 AM

With a little less than a year remaining before the Consumer Financial Protection Bureau’s new mortgage servicing rule goes into effect on Oct. 19, credit unions should know about the rule’s new notice requirement to send to borrowers when a complete loss mitigation application is received.

This notice must be sent within five business days after receiving the borrower’s complete loss mitigation application.

The notice must include certain information, including confirmation that the application is complete and the date the credit union received the complete application. The credit union must also inform the borrower that it expects to complete its evaluation within 30 days of receiving the complete application.

The credit union must also inform the borrower:

  • That the borrower is entitled to certain foreclosure protections because the credit union has received the complete application;
     
  • That the credit union may need additional information at a later date to evaluate the application; and
     
  • That the borrower may be entitled to additional protections under state or federal law.

For more details on the notice requirements, see CUNA’s CompBlog.