Source: http://archive.regulationroom.org/mortgage-protection/draft-summary/for-borrowers-in-trouble-early-intervention-help/
Timestamp: 2018-05-24 10:05:38
Document Index: 244750568

Matched Legal Cases: ['§2', '§3', '§4', '§5', '§2', '§4']

§2. Need;earlier trigger?
§3. Recurring themes
§4. Mechanics; small servicer concerns
§5. Follow-up written notice
This is a summary of discussion on the “For Borrowers in Trouble: “Early Intervention” Help” post from August 10 to October 3, 2012. (On that date, the post was closed to further discussion.) It was written by the Regulation Room team. This version is a DRAFT. Please help make sure that nothing is missing, wrong, or unclear. You can propose changes to this version until October 8.
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§2. Need for proposal; possibly, earlier trigger for requiring servicer attention
“We were able to salvage our loan six years ago, but unanswered phone calls, lack of replies to mailing and requests for assistance plunged us deeper and deeper into debt. … At the beginning of our struggle all we wanted was to convert our option ARM loan to a 30 year fixed at a lower interest. Our calls were ignored for months and we were transferred to one person after another, each time we had to begin again with our explanation and information! When at last we had to get another loan to avoid the continuing financial slide, Countrywide sends us e-mails telling us what a good customer we were and offering us a 30 year fixed rate. Too little…too late.”
§4. Mechanics of required notice and concerns of small servicers
1. Phone calls: One commenter (self-identified as having worked for the mortgage servicing industry in the past for a company whose customers come from across the country and/or from other countries) queried how the proposed 3-try standard would apply if “on the first call, the lender finds out the phone is disconnected or they have a wrong number.” S/he suggested that CFPB consider mirroring the Fair Debt Collection Act approach.
The same commenter who suggested the Fair Debt Collection Act approach urged that emails and text messages be used in addition to (but should not replace) phone calls. S/he suggested that “a great customer service option” would be allowing the borrower to opt in to text messaging: e.g., ‘Your mortgage payment is now due. Payment must be received by (insert last day of grace period) to avoid any late fees or collection efforts. If you are unable to make your payment, please contact (servicer’s name) at (servicer’s phone #) for alternative options.’”
Another commenter (consumer whose household makes less than $100,000/year) added:
“Maybe the answer is to have the consumer set up their account with an email alert. Most of the larger servicers offer internet access to your account, so set up the alert. If this is left to the servicer to send emails, I can just see the next round. Say a couple gets divorced, the servicer only has the wife’s email address, she is not happy doesn’t inform husband who is living in the house. Husband sues servicer for no contact via email. We all need to take a deep breath and realize that the consumer has to take some responsibility here. If you know you[r] house payment is due and the 1st and you don’t pay it – you’re late! And don’t forget not everyone has a computer or cares to get one, what to do about them, at least sending a notice in writing is keeping the postal service somewhat alive.”
A consumer commenter (got or refinanced a mortgage in past 10 years; personal or family experience having a hard time making payments; household makes less than $100,000/year) reacted to the interchange: “Although some of these regulations are burdensome, email notification and communication is paramount in this age. My servicer does not allow me to communicate via email which makes record keeping difficult for me – unilateral for them since the conversations are recorded.”
One consumer commenter (got or refinanced a mortgage in past 10 years; personal or family experience having a hard time making payments; household makes less than $100,000/year) reiterated warnings that appear elsewhere in the larger discussion about the importance of a written record: “Phone calls are great but in my experience, the caller does not document accounts thoroughly if at all. All correspondence regarding past due mortgages should be in writing via email or letter. It should be dated and time stamped and posted to view by both parties on the customer’s account. Everything would be there in black and white.”