Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part IV - Bureau of Consumer Credit Agencies › Chapter 59 - MORTGAGE SERVICING › Section 59.13 - Loss mitigation procedures

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Enforcement and limitations.
A borrower may enforce the
				provisions of this section pursuant to section 6(f) of Real Estate Settlement
				Procedures Act of 1974 (12
				U.S.C.A. §
										2605(f)).
				Nothing in this Section imposes a duty on a servicer to provide any borrower
				with any specific loss mitigation option. Nothing in this Section should be
				construed to create a right for a borrower to enforce the terms of any
				agreement between a servicer and the owner or assignee of a mortgage loan,
				including with respect to the evaluation for, or offer of, any loss mitigation
				option or to eliminate any such right that may exist pursuant to applicable
				law.
(b)
Receipt of a loss
				mitigation application.
(1)
Complete loss mitigation application.
A complete loss
				mitigation application means an application in connection with which a servicer
				has received all the information that the servicer requires from a borrower in
				evaluating applications for the loss mitigation options available to the
				borrower. A servicer shall exercise reasonable diligence in obtaining documents
				and information to complete a loss mitigation application.
(2)
Review of loss mitigation
				application submission.
(i)
Requirements.
If a servicer receives a loss mitigation
				application 45 days or more before a foreclosure sale, a servicer shall:
(A) Promptly upon receipt of a loss
				mitigation application, review the loss mitigation application to determine if
				the loss mitigation application is complete; and
(B) Notify the borrower in writing within 5
				days (excluding legal public holidays, Saturdays, and Sundays) after receiving
				the loss mitigation application that the servicer acknowledges receipt of the
				loss mitigation application and that the servicer has determined that the loss
				mitigation application is either complete or incomplete. If a loss mitigation
				application is incomplete, the notice shall state the additional documents and
				information the borrower must submit to make the loss mitigation application
				complete and the applicable date pursuant to paragraph (b)(2)(ii) of this
				section. The notice to the borrower shall include a statement that the borrower
				should consider contacting servicers of any other mortgage loans secured by the
				same property to discuss available loss mitigation options.
(ii)
Time period
				disclosure.
The notice required pursuant to paragraph (b)(2)(i)(B) of
				this section must include a reasonable date by which the borrower should submit
				the documents and information necessary to make the loss mitigation application
				complete.
(3)
Determining protections.
To the extent a determination of
				whether protections under this section apply to a borrower is made on the basis
				of the number of days between when a complete loss mitigation application is
				received and when a foreclosure sale occurs, such determination shall be made
				as of the date a complete loss mitigation application is received.