Mississippi Administrative Code › Title 25 - Military and Veterans - Veterans' Home Purchase Board › Part 202 - Loan Policies › Chapter 18 - Delinquent Early Intervention Rule Policy › Rule 25-202-18.1 - Delinquency

Current through June 25, 2024
Delinquency begins on the day a payment sufficient to cover
				  principal, interest and escrow for a given billing cycle is due and
				  unpaid.
It is the policy of the VHPB that once a borrower is
				  delinquent for at least 36 days, the Agency's servicing department will make a
				  good faith effort to establish live contact with the borrower and if
				  appropriate, inform the borrower about the availability of loss mitigation
				  options. A good faith effort to establish live contact consists of reasonable
				  steps under the circumstances to reach the borrower. For delinquencies that
				  begin on or after January 10, 2014, the VHPB will consider the following
				  communications reasonable steps under the circumstances to establish live
				  contact:
A. A borrower working with the
				VHPB servicing department to obtain loss mitigation. The live contact
				requirement is satisfied with regard to a case in which a borrower is
				delinquent in consecutive billing cycles if the VHPB's representative has
				established and is maintaining ongoing contract with regard to the borrower's
				completion of a loss mitigation application and the service department's
				evaluation of that borrower for loss mitigation options.
B. A borrower stops paying under a loss
				mitigation plan or becomes delinquent after curing a prior default. A borrower
				is not delinquent under the rule if performing as agreed under a loss
				mitigation option designed to bring the borrower current on a previously missed
				payment. This includes forbearance plans and trial modifications. If the
				borrower fails to make a loss mitigation payment, a new delinquency begins and
				the VHPB should make good faith efforts to contact the borrower within 36 days
				of the start of the delinquency and for each of any subsequent billing periods
				for which the borrower's obligation is due and unpaid. Similarly, if a borrower
				successfully cures a prior default but becomes delinquent again, the VHPB's
				representative should make a good faith effort to contact the borrower within
				36 days for each of the subsequent billing periods for which borrower's
				obligation is due and unpaid.
C.
				Communication in conjunction with other contact. Live contact is established
				when the borrower initiates contact with the VHPB. Early Intervention Rule
				contact is satisfied by combining contacts made with the borrower for other
				reasons, by adding a brief script to collection calls or other contacts to
				inform the borrower that loss mitigation options may be available in accordance
				with the rule.
D. A borrower is
				unresponsive. When the borrower fails to respond to the Agency's attempts to
				make live contact, a statement to contact the Agency's servicing department
				regarding the delinquency may be included in the periodic statement or in an
				electronic communication. Such efforts are appropriate when there is little
				hope of the home retention by the borrower.
Miss. Code Ann. §
										35-7-7