New York Codes, Rules and Regulations › Title 3 - BANKING › Chapter III - SUPERINTENDENT'S REGULATIONS › Subchapter B - NON-BANKING ORGANIZATIONS › Part 419 - SERVICING MORTGAGE LOANS: BUSINESS CONDUCT RULES › Section 419.7 - Residential mortgage loan delinquencies and loss mitigation efforts

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
In
				  general.
A servicer shall make reasonable and good faith efforts, in
					 accordance with the requirements set forth in Civil Practice Laws and Rules
					 section 3408, to provide appropriate loss mitigation options to help borrowers
					 avoid foreclosure consistent with usual and customary industry standards, the
					 lawful terms of the note, mortgage or contract for the servicing of a mortgage
					 loan, and subdivision (c) of this section.
(b)
Single point of contact.
(1) Servicers shall assign a single point of
				  contact to any borrower who is at least 30 days delinquent or has requested a
				  loss mitigation application (or earlier at a servicer's option).
(2) The single point of contact shall attempt
				  to initiate contact with the borrower promptly following the assignment of the
				  single point of contact to the borrower.
(3) The single point of contact shall have
				  access to all records containing current information about the borrower's
				  account, including, but not limited to, records relating to loss mitigation
				  applications, pending foreclosure actions, documentation requests, and details
				  of missing or incomplete documentation.
(4) The single point of contact shall have
				  primary responsibility for coordinating the servicer's actions to resolve the
				  borrower's delinquency or imminent risk of delinquency until all available home
				  retention and non-foreclosure liquidation options have been exhausted and for
				  communicating those actions to the borrower. The single point of contact's
				  responsibilities shall include:
(i)
				  communicating the loss mitigation options available to the borrower, the
				  actions the borrower must take to be considered for loss mitigation, detailed
				  information on the eligibility criteria for any given loss mitigation option,
				  and the status of the servicer's evaluation of the borrower for loss mitigation
				  options;
(ii) coordinating tracking
				  and maintenance of all documents associated with loan modification or loss
				  mitigation activities so that the borrower will not be unreasonably required to
				  resubmit the same documented information, and that the borrower is notified
				  promptly of the need for additional information;
(iii) being knowledgeable about the
				  borrower's situation throughout the entire delinquency or imminent risk of
				  delinquency resolution process; and
(iv) coordinating with other personnel
				  (in-house or third-party provider) responsible for ensuring that a borrower is
				  considered for all available loss mitigation options, including proprietary
				  loss mitigation options.
(5) The single point of contact shall have
				  direct and immediate access to personnel with the authority to stop foreclosure
				  proceedings to comply with section 419.10(a)(4) and (5)  of this Part, and an
				  obligation to communicate immediately to such personnel any information
				  received by the single point of contact indicating that it may be necessary or
				  appropriate to stop a foreclosure proceeding as required by section
				  419.10(a)(4) and (5)  of this Part.
(6) The single point of contact shall
				  transfer a borrower to an appropriate supervisor upon the request of the
				  borrower. Such transfer shall comply with section 419.6(e)(5)  of this
				  Part.
(7) The single point of
				  contact shall remain assigned and available to the borrower until the
				  borrower's account becomes current or the servicer determines that all loss
				  mitigation options offered by, or through, the servicer have been
				  exhausted.
(8) A servicer may
				  assign a group of people to be a borrower's single point of contact provided
				  that the servicer shall ensure that each member of the group is knowledgeable
				  about the borrower's situation and current status in the loss mitigation
				  process, including the content and outcome of any communication with the
				  borrower.