12 CFR §1024.41 — Loss mitigation procedures

reg-x-1024-41

Regulation X §1024.41 sets the loss-mitigation procedural framework for mortgage servicers: acknowledgment of receipt, 30-day evaluation of complete applications, denial-reason disclosures, 14-day appeal rights, the 120-day pre-foreclosure-referral hold, and the prohibition on foreclosure judgment/sale during evaluation (the anti-dual-tracking rules).

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Verbatim regulatory text (10)

Verbatim provisions from 12 CFR §1024.41 — Loss mitigation procedures — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

12 CFR §1024.41(b)(2)(i) — Acknowledgment of receipt of 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:

Source: 12 CFR §1024.41(b)(2)(i) · source URL · snapshot 5c36d490608d55af

12 CFR §1024.41(c)(1) — 30-day evaluation of complete loss mitigation application

(c) Evaluation of loss mitigation applications —(1) Complete loss mitigation application. Except as provided in paragraph (c)(4)(ii) of this section, if a servicer receives a complete loss mitigation application more than 37 days before a foreclosure sale, then, within 30 days of receiving the complete loss mitigation application , a servicer shall:

Source: 12 CFR §1024.41(c)(1) · source URL · snapshot 5c36d490608d55af

12 CFR §1024.41(c)(4)(i) — Reasonable diligence for third-party information

(4) Information not in the borrower's control —(i) Reasonable diligence. If a servicer requires documents or information not in the borrower's control to determine which loss mitigation options, if any, it will offer to the borrower, the servicer must exercise reasonable diligence in obtaining such documents or information.

Source: 12 CFR §1024.41(c)(4)(i) · source URL · snapshot 5c36d490608d55af

12 CFR §1024.41(d) — Denial of loan modification options: specific reasons

(d) Denial of loan modification options. If a borrower's complete loss mitigation application is denied for any trial or permanent loan modification option available to the borrower pursuant to paragraph (c) of this section, a servicer shall state in the notice sent to the borrower pursuant to paragraph (c)(1)(ii) of this section the specific reason or reasons for the servicer 's determination for each such trial or permanent loan modification option and, if applicable, that the borrower was not evaluated on other criteria.

Source: 12 CFR §1024.41(d) · source URL · snapshot 5c36d490608d55af

12 CFR §1024.41(f)(1) — Pre-foreclosure 120-day review period

(f) Prohibition on foreclosure referral —(1) Pre-foreclosure review period. A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless:

Source: 12 CFR §1024.41(f)(1) · source URL · snapshot 5c36d490608d55af

12 CFR §1024.41(g) — Prohibition on foreclosure sale (anti-dual-tracking)

(g) Prohibition on foreclosure sale. If a borrower submits a complete loss mitigation application after a servicer has made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process but more than 37 days before a foreclosure sale, a servicer shall not move for foreclosure judgment or order of sale, or conduct a foreclosure sale, unless:

Source: 12 CFR §1024.41(g) · source URL · snapshot 5c36d490608d55af

12 CFR §1024.41(h) — Appeal process for loan modification denials

(h) Appeal process —(1) Appeal process required for loan modification denials. If a servicer receives a complete loss mitigation application 90 days or more before a foreclosure sale or during the period set forth in paragraph (f) of this section, a servicer shall permit a borrower to appeal the servicer 's determination to deny a borrower's loss mitigation application for any trial or permanent loan modification program available to the borrower.

Source: 12 CFR §1024.41(h) · source URL · snapshot 5c36d490608d55af

12 CFR §1024.41(c)(1) — 30-day evaluation of complete loss mitigation application — enumerated items (chapeau recall fix)

(i) Evaluate the borrower for all loss mitigation options available to the borrower; and (ii) Provide the borrower with a notice in writing stating the servicer 's determination of which loss mitigation options, if any, it will offer to the borrower on behalf of the owner or assignee of the mortgage . The servicer shall include in this notice the amount of time the borrower has to accept or reject an offer of a loss mitigation program as provided for in paragraph (e) of this section, if applicable, and a notification, if applicable, that the borrower has the right to appeal the denial of any loan modification option as well as the amount of time the borrower has to file such an appeal and any requirements for making an appeal, as provided for in paragraph (h) of this section.

Source: 12 CFR §1024.41(c)(1) · source URL · snapshot 5c36d490608d55af

12 CFR §1024.41(f)(1) — Pre-foreclosure 120-day review period — enumerated items (chapeau recall fix)

(i) A borrower's mortgage loan obligation is more than 120 days delinquent; (ii) The foreclosure is based on a borrower's violation of a due-on-sale clause; or (iii) The servicer is joining the foreclosure action of a superior or subordinate lienholder.

Source: 12 CFR §1024.41(f)(1) · source URL · snapshot 5c36d490608d55af

12 CFR §1024.41(g) — Prohibition on foreclosure sale (anti-dual-tracking) — enumerated items (chapeau recall fix)

(1) The servicer has sent the borrower a notice pursuant to paragraph (c)(1)(ii) of this section that the borrower is not eligible for any loss mitigation option and the appeal process in paragraph

Source: 12 CFR §1024.41(g) · source URL · snapshot 5c36d490608d55af