Past Due or Defaulted Mortgage Loan Borrowers – Understanding the Compliance Rules

Date Recorded: April 30, 2024
Presenter: Ginger McCullough, CRCM, Manager, Forvis, LLP.

A two-hour webinar that covers federal compliance rules that regulate how you interact with and what disclosures you provide to troubled borrowers.

All a creditor wants is its money back. So, a borrower becoming delinquent on their payments or otherwise defaulting on their obligations is an always-present worry that creditors have. Given the claims of an upcoming recession and an unpredictable workforce, creditors currently may be even more worried. Although much of an institution’s actions when a borrower becomes defaulted is based on state and contract law, there are some federal lending compliance rules that can apply depending on the circumstances and the servicer.

This webinar will discuss the various compliance regulations that speak to how institutions treat borrowers who have become delinquent or in default on a mortgage loan: whether an institution must continue providing regular disclosures, having to provide additional disclosures, dispute provisions, and specific loss mitigation requirements.  As some rules exempt small servicers, we will distinguish specifically those rules that apply to small servicers and those that apply to large servicers.  Finally, the webinar will include a brief note as to the interaction of safety and soundness and secondary market requirements with federal compliance regulations, as well as a brief overview of the applicability of various collection laws.

HERE IS WHAT YOU WILL LEARN:

• RESPA/Regulation X
  • Exceptions from escrow rules
  • Dispute procedures
  • Force-placement
  • Early intervention, continuity of contact, loss mitigation

• TILA/Regulation Z
  • Periodic statements
  • ARM notices with certain loan modifications

• Other Rules
  • Fair Credit Reporting Act notification and dispute procedures
  • Homeownership counseling notification
  • Private mortgage insurance
  • Servicemember Civil Relief Act

• Successor-in-Interest provisions

• UDAAP/FDCPA

• Quick overview of the Uniform Retail Credit Classification Act; Troubled Debt Restructuring guidance; IRS Forms 1099-A and 1099-C