Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-11 - RESIDENTIAL MORTGAGE BROKERS, LENDERS AND ORIGINATORS › Subject 80-11-6 - MORTGAGE SERVICING › Rule 80-11-6-.02 - Mortgage Servicing Standards

Current through Rules and Regulations filed through June 27, 2024
(1) The standards set forth in this Rule apply only to persons licensed, registered, or required to be licensed or registered under Article 13 of Chapter 1 of Title 7 of the Official Code of Georgia Annotated.
(2) Except as set forth in paragraph (7) of this Rule, any person who services a closed-end mortgage loan ("servicer"):
(a) Shall act with reasonable skill, care, and diligence;
(b) Shall not charge fees for:
1. Handling borrower disputes;
2. Facilitating routine borrower collections;
3. Arranging repayment or forbearance plans;
4. Sending borrowers notice of nonpayment;
5. Updating records to reinstate a mortgage loan; and
6. Late payment in excess of the initial late payment fee, as provided by 12 C.F.R. §
												1026.36(c)(2).
(c) Except as set forth in section (d) below, shall not commence a foreclosure process while a borrower's complete loss mitigation application is pending ("dual-tracking");
(d) Shall not conduct a foreclosure sale before evaluating the borrower's complete loss mitigation application in the event the complete loss mitigation application is received after a foreclosure process has been commenced and more than 37 days before the foreclosure sale.
(e) Shall consider loss mitigation whenever possible and, at a minimum:
1. Acknowledge receipt of a borrower's initial loss mitigation application within 5 business days of receipt;
2. Upon receipt of a borrower's initial loss mitigation application, provide name, address, and a collect call or toll-free telephone number for an employee or department of the servicer that can be contacted by the borrower regarding loss mitigation application inquiries;
3. Upon receipt of a borrower's initial loss mitigation application, identify requirements for loss mitigation options, if available; and
4.
(i) Evaluate a borrower's eligibility for available loss mitigation options within 30 days of receipt of loss mitigation application if a servicer receives that loss mitigation application more than 37 days before a foreclosure sale or
(ii) In the event a servicer is not required to evaluate the loss mitigation application under subsection (i), the servicer shall either notify the borrower that the loss mitigation application was not timely or evaluate the loss mitigation application.
(f) Shall have a process for borrowers to appeal loss mitigation disputes, including, but not limited to, a formal review of loss mitigation options, to personnel different than those responsible for previous evaluations or provide an option for borrowers to mediate such disputes if the loss mitigation application was received 90 days or more before a foreclosure sale;
(g) Shall have an error resolution process for all borrowers, unless expressly excluded pursuant to 12 C.F.R. §
											1024.35(g), which must, at a minimum:
1. Acknowledge receipt of a borrower's notice of error within 5 business days of receipt;
2. Conduct a reasonable investigation; and
3. Within 45 days, except where prompter compliance is required by 12 C.F.R. §
												1024.35(e)(3) or alternative compliance is provided in 12 C.F.R. §
												1024.35(f), provide a borrower with a written notification of:
(i) the correction of error or
(ii) the servicer's determination that no error occurred and the reason for such determination.
(h) Shall apply payments to the principal and interest first, rather than the insurance, taxes, and fees of the mortgage loan, except where inconsistent with federal law;
(i) Shall not assess on a borrower any charge or fee related to force-placed insurance, unless the servicer has a reasonable basis to believe the borrower has failed to comply with the mortgage contract's requirements to maintain insurance; and
(j) Shall not obtain force-placed insurance for a borrower that imposes an unreasonable charge or fee related to the force-placed insurance.