# SAMPLE Loss Mitigation P&P — to update

> A SAMPLE loss-mitigation policy from Compliance for Claude. Upload it together with the regs and ask your AI to bring it current. Edit it, or swap in your own P&P.

---

# Servicing Loss Mitigation Program

_Federal loss-mitigation program covering Reg X early-intervention, continuity-of-contact, loss-mit application review, dual-tracking prohibitions, and program-specific overlays for FHA loans (HUD Mortgagee Letters), conventional Fannie/Freddie investor rules, and SCRA / bankruptcy stays._

**Lender:** [LENDER]  
**Version date:** 2026-05-26  

## How to use this draft

Each clause below is drawn directly from federal statute or regulation. The compliance team must:

1. Review every line against the lender's actual operational practice — adopt, modify, or document an explicit exclusion.
2. Verify each cited source is still current (every clause links to the regulator-direct source URL and shows the date it was fetched).
3. Replace `[LENDER]` placeholders with the lender's voice and incorporate into the formal P&P manual.

## Table of contents

1. Early Intervention with Delinquent Borrowers
2. Continuity of Contact
3. Loss Mitigation Procedures
4. General Servicing Policies, Procedures, and Requirements
5. FHA Permanent Loss-Mit Framework (HUD ML 2025-12)
6. FHA CWCOT Sales-Period Framework (HUD ML 2025-13)
7. SCRA Foreclosure Stay (Servicemember Protections)
8. Bankruptcy Automatic Stay
9. Chapter 13 Plan Cure of Arrearages
10. FNMA Servicing Guide D1-1 — General Default-Servicing Standards
11. FNMA Servicing Guide D2-1 — Working with a Borrower Facing Default
12. FNMA Servicing Guide D2-2 — Requirements for Contacting a Borrower
13. FNMA Servicing Guide D2-3 — Home Retention and Liquidation Workout Options
14. FHLMC Single-Family Guide Chapter 9101 — Delinquency Management
15. FHLMC Single-Family Guide Chapter 9201 — Loss Mitigation Evaluation Hierarchy
16. FHLMC Single-Family Guide Chapter 9203 — Reinstatements and Relief Options
17. FHLMC Single-Family Guide Chapter 9204 — Freddie Mac Workout Options
18. HUD Handbook 4000.1 III.A.2.h — Loss Mitigation Program (FHA)
19. HUD Handbook 4000.1 III.A.2.i — Loss Mitigation Home Retention Options
20. HUD Handbook 4000.1 III.A.2.j — Home Disposition Options
21. Ginnie Mae MBS Guide Chapter 18 — Mortgage Delinquency and Default
22. USDA HB-1-3555 Chapter 17 — Regular Servicing (Performing Loans)
23. USDA HB-1-3555 Chapter 18 — Servicing Non-Performing Loans (Loss Mitigation)
24. VA Servicer Handbook M26-4 Chapter 5 — Loss Mitigation
25. HUD Handbook 4000.1 III.A.1 — Servicing of FHA-Insured Mortgages (Foundations)
26. HUD Handbook 4000.1 III.A.2 — Default Servicing (Definitions, Late Charges, CRA/IRS Reporting)
27. HUD Handbook 4000.1 III.A.2 — FHA Loss Mitigation Program (9-Option Waterfall + 90-Day Review)
28. FNMA Servicing Guide D2-2 — QRPC + Outbound Contact + Payment Reminder
29. FNMA Servicing Guide D2-3.1 — Workout Conditions + Group Home Servicing
30. FNMA Servicing Guide A4-1-01 — Servicer Staffing/Training/QC Foundations

## Related P&P documents

- Notice of Error / RFI Resolution Program (Reg X §§1024.35/.36)
- Periodic Statements P&P (Reg Z §1026.41)
- Force-Placed Insurance Policy (Reg X §1024.37)

## §1. Early Intervention with Delinquent Borrowers

_12 CFR §1024.39 — Early intervention requirements for certain borrowers_

**Obligation:** [LENDER], as servicer, shall establish or make good faith efforts to
establish live contact with a delinquent borrower no later than the 36th
day of delinquency and again no later than 36 days after each subsequent
payment due date so long as the borrower remains delinquent. Promptly
after establishing live contact, [LENDER] shall inform the borrower
about the availability of loss mitigation options, if appropriate.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-delinquency-cycle

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.39(a)](https://www.law.cornell.edu/cfr/text/12/1024.39)  
  Fetched `2026-05-22T11:32:18Z` · Hash `sha256:44861510e9ba0f7e…`  
  > (a) Live contact. Except as otherwise provided in this section, a servicer shall establish or make good faith efforts to establish live contact with a delinquent borrower no later than the 36th day of a borrower's delinq…

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 39(a)-2:_ 2. Establishing live contact. Live contact provides servicers an opportunity to discuss the circumstances of a borrower's delinquency. Live contact with a borrower includes speaking on the telephone or conducting an in-person meeting with the borrower but not leaving a recorded phone message. A servicer may rely on liv…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_
>
> _Supplement I to 12 CFR Part 1024 — Comment 39(a)-3:_ 3. Good faith efforts. Good faith efforts to establish live contact consist of reasonable steps, under the circumstances, to reach a borrower and may include telephoning the borrower on more than one occasion or sending written or electronic communication encouraging the borrower to establish live contact with the serv…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 3 pathways below (within a pathway, all items required):_

**Pathway A: Live contact achieved within 36-day window**

- **Record:** Servicing-system call/contact log showing date and time of live contact (telephone conversation or in-person meeting) with the delinquent borrower on or before day 36 of delinquency. Recorded phone messages do NOT count per Comment 39(a)-2.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.A.1_
  - Evidence ID: `csh-ev-reg-x-1024.39-a-live-contact-call-log`
- **Document:** Servicing-note or written follow-up confirming that, promptly after live contact, [LENDER] informed the borrower about available loss mitigation options (if appropriate).
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.A.2_
  - Evidence ID: `csh-ev-reg-x-1024.39-a-loss-mit-information-provided`

**Pathway B: Live contact NOT achieved — but good-faith-effort record meets §1024.39(a)**

- **Record:** Servicing-system contact-attempt log showing reasonable steps to establish live contact under the circumstances — e.g., telephoning the borrower on more than one occasion at different times of day, with documented outcome (no answer, voicemail, etc.).
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.A.1_
  - Evidence ID: `csh-ev-reg-x-1024.39-a-multi-attempt-log`
- **Document:** Copy of written or electronic communication sent to the borrower encouraging them to establish live contact with the servicer (per Comment 39(a)-3).
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.A.1_
  - Evidence ID: `csh-ev-reg-x-1024.39-a-written-or-electronic-outreach`

**Pathway C: [LENDER] qualifies as small servicer under §1024.30(b) — §1024.39 does not apply**

- **Third-party attestation:** [LENDER]'s annual attestation that it serviced 5,000 or fewer mortgage loans for which it (or an affiliate) is the creditor or assignee, OR qualifies as a Housing Finance Agency (per §1024.30(b)).
  - Retention rule: `reg-x-1024.30`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.A.0_
  - Evidence ID: `csh-ev-reg-x-1024.39-a-small-servicer-attestation`

> **How to select your pathway:** Three pathways selected by facts of the loan: (A) live contact was actually achieved; (B) live contact was not achieved but good-faith efforts were documented (multiple call attempts + written/electronic outreach); (C) [LENDER] qualifies as a small servicer and is exempt from §1024.39 entirely. Pathway A and B are evaluated per-loan per-delinquency-cycle; pathway C is institution-level and pre-empts the per-loan obligation.

<sub>Derivation: `snapshot_extract` · Source: 12 CFR §1024.39(a) · Snapshot: `b07433ccd2b6a743` · Fetched: 2026-05-22T11:32:18Z</sub>


---

**Obligation:** [LENDER], as servicer, shall provide to a delinquent borrower a written
early-intervention notice containing the §1024.39(b)(2) content no later
than the 45th day of delinquency and again no later than 45 days after
each subsequent payment due date so long as the borrower remains
delinquent — subject to the once-per-180-day frequency cap and the
follow-on timing rules in §1024.39(b)(1).


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-delinquency-cycle

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.39(b)(1)](https://www.law.cornell.edu/cfr/text/12/1024.39)  
  Fetched `2026-05-22T11:32:18Z` · Hash `sha256:44861510e9ba0f7e…`  
  > (b) Written notice —(1) Notice required. Except as otherwise provided in this section, a servicer shall provide to a delinquent borrower a written notice with the information set forth in paragraph (b)(2) of this section…

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 39(b)(1)-2:_ 2. Frequency of the written notice. A servicer need not provide the written notice under § 1024.39(b) more than once during a 180-day period beginning on the date on which the written notice is provided. A servicer must provide the written notice under § 1024.39(b) at least once every 180 days to a borrower who is 45 d…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_
>
> _Supplement I to 12 CFR Part 1024 — Comment 39(b)(1)-5:_ 5. Servicing transfers. A transferee servicer is required to comply with the requirements of § 1024.39(b) regardless of whether the transferor servicer provided a written notice to the borrower in the preceding 180-day period. However, a transferee servicer is not required to provide a written notice under § 1024.39(b)…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 3 pathways below (within a pathway, all items required):_

**Pathway A: Written early-intervention notice sent by day 45 of delinquency**

- **Timestamp:** System-of-record timestamp marking day 1 of borrower delinquency.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.1_
  - Evidence ID: `csh-ev-reg-x-1024.39-b1-delinquency-start`
- **Document:** Copy of §1024.39(b)(2)-compliant written notice mailed or delivered no later than the 45th day of delinquency, with delivery-method record and addressee verification.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.2_
  - Evidence ID: `csh-ev-reg-x-1024.39-b1-written-notice-sent`

**Pathway B: Written notice not due — already provided within prior 180-day window**

- **Document:** Copy of prior §1024.39(b) written notice sent within the preceding 180 days, demonstrating the once-per-180-day frequency-cap exemption per Comment 39(b)(1)-2 applies.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.3_
  - Evidence ID: `csh-ev-reg-x-1024.39-b1-prior-notice-record`

**Pathway C: [LENDER] qualifies as small servicer under §1024.30(b) — §1024.39 does not apply**

- **Third-party attestation:** [LENDER]'s annual small-servicer attestation per §1024.30(b).
  - Retention rule: `reg-x-1024.30`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.A.0_
  - Evidence ID: `csh-ev-reg-x-1024.39-b1-small-servicer-attestation`

> **How to select your pathway:** Three pathways: A — first §1024.39(b) notice in this delinquency cycle (or first since ≥180 days), sent by day 45; B — notice already sent within prior 180 days, so frequency cap suspends current obligation; C — [LENDER] is a small servicer and §1024.39 is institutionally inapplicable.

<sub>Derivation: `snapshot_extract` · Source: 12 CFR §1024.39(b)(1) · Snapshot: `b07433ccd2b6a743` · Fetched: 2026-05-22T11:32:18Z</sub>


---

**Obligation:** [LENDER]'s §1024.39(b) written notice shall include: a statement
encouraging the borrower to contact the servicer; the §1024.40(a)
continuity-of-contact telephone number and the servicer's mailing
address; if applicable, brief examples of loss mitigation options;
if applicable, application instructions or how to obtain more
information about loss mit options; and the Bureau or HUD homeownership-
counselor website plus the HUD toll-free counselor phone number.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.39(b)(2)](https://www.law.cornell.edu/cfr/text/12/1024.39)  
  Fetched `2026-05-22T11:32:18Z` · Hash `sha256:44861510e9ba0f7e…`  
  > (2) Content of the written notice. The notice required by paragraph (b)(1) of this section shall include:

---

**Obligation:** While any borrower on a mortgage loan is a debtor in bankruptcy under
title 11 of the United States Code, [LENDER]: is exempt from the (a)
live-contact requirement; is exempt from the (b) written-notice
requirement if no loss mitigation option is available, or if any
borrower has provided an FDCPA §805(c) cease-communication notice;
and otherwise must comply with (b) as modified by §1024.39(c)(1)(iii).


**Responsible role:** default_servicing_analyst (secondary: bankruptcy_specialist)

**Cadence:** per-bankruptcy-event

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.39(c)(1)](https://www.law.cornell.edu/cfr/text/12/1024.39)  
  Fetched `2026-05-22T11:32:18Z` · Hash `sha256:44861510e9ba0f7e…`  
  > (c) Borrowers in bankruptcy —(1) Partial exemption. While any borrower on a mortgage loan is a debtor in bankruptcy under title 11 of the United States Code, a servicer , with regard to that mortgage loan:

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 39(c)-2:_ 2. Adapting requirements in bankruptcy. Section 1024.39(c) does not require a servicer to communicate with a borrower in a manner that would be inconsistent with applicable bankruptcy law or a court order in a bankruptcy case. If necessary to comply with such law or court order, a servicer may adapt the requirements of…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** [LENDER] that was exempt from (a) and (b) under (c)(1) must resume
compliance with (a) and (b) after the next payment due date following
the earliest of: bankruptcy case dismissal, case closure, or borrower
reaffirmation of personal liability — subject to the §1024.39(c)(2)(ii)
exception for loans where the borrower discharged personal liability
under 11 U.S.C. §§727, 1141, 1228, or 1328.


**Responsible role:** default_servicing_analyst (secondary: bankruptcy_specialist)

**Cadence:** per-bankruptcy-exit

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.39(c)(2)](https://www.law.cornell.edu/cfr/text/12/1024.39)  
  Fetched `2026-05-22T11:32:18Z` · Hash `sha256:44861510e9ba0f7e…`  
  > (2) Resuming compliance.

---

**Obligation:** When any borrower has provided an FDCPA §805(c) (15 U.S.C. §1692c(c))
cease-communication notice on a mortgage loan, [LENDER] (if subject to
the FDCPA on that loan): is exempt from (a) live-contact; is exempt
from (b) written-notice if no loss-mit option is available or while
any borrower is in bankruptcy; otherwise must comply with (b) as
modified by §1024.39(d)(3) — including the foreclosure-intent statement
in the notice, the prohibition on payment requests, and the once-per-
180-day frequency cap with the 190-day re-issue rule.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-event

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.39(d)](https://www.law.cornell.edu/cfr/text/12/1024.39)  
  Fetched `2026-05-22T11:32:18Z` · Hash `sha256:44861510e9ba0f7e…`  
  > (d) Fair Debt Collection Practices Act — partial exemption. With regard to a mortgage loan for which any borrower has provided a notification pursuant to the Fair Debt Collection Practices Act (FDCPA) section 805(c) ( 15…

---

## §2. Continuity of Contact

_12 CFR §1024.40 — Continuity of contact_

**Obligation:** [LENDER], as servicer, shall maintain policies and procedures that are
reasonably designed to achieve the objectives in §1024.40(a)(1)–(3):
assign personnel to a delinquent borrower by the time the §1024.39(b)
written notice is provided but in any event not later than the 45th
day of delinquency; make those personnel available by telephone; and
ensure a timely live response when the borrower contacts the assigned
personnel.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.40(a)](https://www.law.cornell.edu/cfr/text/12/1024.40)  
  Fetched `2026-05-22T11:32:19Z` · Hash `sha256:18932c262bb2293a…`  
  > (a) In general. A servicer shall maintain policies and procedures that are reasonably designed to achieve the following objectives:

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 40(a)-2:_ 2. Assignment of personnel. A servicer has discretion to determine whether to assign a single person or a team of personnel to respond to a delinquent borrower. The personnel a servicer assigns to the borrower as described in § 1024.40(a)(1) may be single-purpose or multi-purpose personnel. Single-purpose personnel are…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** [LENDER]'s continuity-of-contact policies must ensure assigned personnel
are assigned to a delinquent borrower by the time the §1024.39(b)
written notice is provided, and in any event not later than the 45th
day of the borrower's delinquency.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-delinquency-cycle

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.40(a)(1)](https://www.law.cornell.edu/cfr/text/12/1024.40)  
  Fetched `2026-05-22T11:32:19Z` · Hash `sha256:18932c262bb2293a…`  
  > (1) Assign personnel to a delinquent borrower by the time the servicer provides the borrower with the written notice required by § 1024.39(b) , but in any event, not later than the 45th day of the borrower's delinquency…


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 2 pathways below (within a pathway, all items required):_

**Pathway A: Personnel assigned to delinquent borrower by day 45 (or earlier via §1024.39(b) written-notice date)**

- **Timestamp:** System-of-record timestamp marking day 1 of the borrower's delinquency cycle.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.D.1_
  - Evidence ID: `csh-ev-reg-x-1024.40-a1-delinquency-start-timestamp`
- **Record:** Servicing-system assignment record showing specific personnel (or dedicated team per §1024.40(b)) assigned to the borrower, with assignment-effective date on or before the earlier of (a) §1024.39(b) written-notice send date, or (b) day 45 of delinquency.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.D.2_
  - Evidence ID: `csh-ev-reg-x-1024.40-a1-personnel-assignment-record`
- **Document:** Communication to borrower identifying the assigned personnel/team's contact information (phone, email) per §1024.40(b)(2).
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.D.3_
  - Evidence ID: `csh-ev-reg-x-1024.40-a1-borrower-notification-of-contact-point`

**Pathway B: [LENDER] qualifies as small servicer under §1024.30(b) — §1024.40 does not apply**

- **Third-party attestation:** [LENDER]'s annual small-servicer attestation per §1024.30(b).
  - Retention rule: `reg-x-1024.30`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.A.0_
  - Evidence ID: `csh-ev-reg-x-1024.40-a1-small-servicer-attestation`

> **How to select your pathway:** Two pathways selected by facts: A — affirmative continuity-of-contact assignment by the earlier of §1024.39(b) written-notice-send or day 45; B — [LENDER] is a small servicer and §1024.40 does not apply at all. Pathway A requires all three evidence items; B requires only the institution-level attestation.

<sub>Derivation: `snapshot_extract` · Source: 12 CFR §1024.40(a)(1) · Snapshot: `cde74e9b810c3590` · Fetched: 2026-05-22T11:32:19Z</sub>


---

**Obligation:** [LENDER]'s continuity-of-contact policies must make the assigned
personnel available to a delinquent borrower by telephone to respond
to inquiries and, as applicable, assist with available loss mit options
until the borrower has made, without incurring a late charge, two
consecutive mortgage payments under a permanent loss mit agreement.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.40(a)(2)](https://www.law.cornell.edu/cfr/text/12/1024.40)  
  Fetched `2026-05-22T11:32:19Z` · Hash `sha256:18932c262bb2293a…`  
  > (2) Make available to a delinquent borrower, via telephone, personnel assigned to the borrower as described in paragraph (a)(1) of this section to respond to the borrower's inquiries, and as applicable, assist the borrow…

---

**Obligation:** [LENDER]'s continuity-of-contact personnel must be able to provide the
borrower with accurate information about loss-mit options from the
owner/assignee, actions the borrower must take to be evaluated (including
to submit a complete §1024.41 application and to appeal denials of trial
or permanent modifications), status of the borrower's loss-mit
application, circumstances under which a foreclosure referral may be
made, and applicable loss-mit deadlines (owner/assignee or §1024.41).


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.40(b)(1)](https://www.law.cornell.edu/cfr/text/12/1024.40)  
  Fetched `2026-05-22T11:32:19Z` · Hash `sha256:18932c262bb2293a…`  
  > (1) Provide the borrower with accurate information about:

---

**Obligation:** [LENDER]'s continuity-of-contact personnel must be able to retrieve, in
a timely manner, a complete record of the borrower's payment history and
all written information the borrower has provided to the servicer and to
prior servicers in connection with a loss mitigation application.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.40(b)(2)](https://www.law.cornell.edu/cfr/text/12/1024.40)  
  Fetched `2026-05-22T11:32:19Z` · Hash `sha256:18932c262bb2293a…`  
  > (2) Retrieve, in a timely manner:

---

## §3. Loss Mitigation Procedures

_12 CFR §1024.41 — Loss mitigation procedures_

**Obligation:** If [LENDER], as servicer, receives a loss mitigation application 45 days
or more before a foreclosure sale, [LENDER] shall promptly review the
application for completeness and notify the borrower in writing within
5 days (excluding legal public holidays, Saturdays, and Sundays) that
[LENDER] acknowledges receipt and has determined the application is
either complete or incomplete; if incomplete, the notice must state
the additional documents and information required, the applicable
submission date, and a statement about contacting servicers of other
mortgage loans on the same property.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-loss-mit-application

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.41(b)(2)(i)](https://www.law.cornell.edu/cfr/text/12/1024.41)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:7cd5f85bb5fa3c93…`  
  > (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:

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 41(b)(1)-2:_ 2. When an inquiry or prequalification request becomes an application. A servicer is encouraged to provide borrowers with information about loss mitigation programs. If in giving information to the borrower, the borrower expresses an interest in applying for a loss mitigation option and provides information the service…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_
>
> _Supplement I to 12 CFR Part 1024 — Comment 41(b)(2)(i)-1:_ 1. Foreclosure sale not scheduled. For purposes of § 1024.41(b)(2)(i) , if no foreclosure sale has been scheduled as of the date a servicer receives a loss mitigation application, the servicer must treat the application as having been received 45 days or more before any foreclosure sale.
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_
>
> _Supplement I to 12 CFR Part 1024 — Comment 41(i)-1:_ 1. Applicability of loss mitigation protections. Under § 1024.41(i) , a servicer must comply with § 1024.41 with respect to a loss mitigation application unless the servicer has previously done so for a complete loss mitigation application submitted by the borrower and the borrower has been delinquent at all times sinc…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 2 pathways below (within a pathway, all items required):_

**Pathway A: Application was complete when received: 5-business-day acknowledgment confirming completeness**

- **Timestamp:** System-of-record receipt timestamp of the loss-mitigation application, with foreclosure-sale-date >= receipt + 45 days.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.2.a_
  - Evidence ID: `csh-ev-reg-x-1024.41-b2-receipt-timestamp`
- **Record:** Completeness-review record documenting [LENDER]'s assessment that all required documents/information were present in the initial submission.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.2.b_
  - Evidence ID: `csh-ev-reg-x-1024.41-b2-completeness-review-record`
- **Document:** Copy of the written acknowledgment notice sent within 5 business days (excl. legal public holidays, Saturdays, Sundays) confirming the application is complete, including the other-mortgage-servicer statement.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.2.c_
  - Evidence ID: `csh-ev-reg-x-1024.41-b2-complete-acknowledgment-notice`

**Pathway B: Application was incomplete when received: 5-business-day notice with missing-document list + applicable date**

- **Timestamp:** System-of-record receipt timestamp of the loss-mit application, with foreclosure-sale-date >= receipt + 45 days.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.2.a_
  - Evidence ID: `csh-ev-reg-x-1024.41-b2-receipt-timestamp-incomplete`
- **Record:** Completeness-review record identifying SPECIFIC missing documents or information items required for completeness.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.2.b_
  - Evidence ID: `csh-ev-reg-x-1024.41-b2-incompleteness-review-record`
- **Document:** Copy of the written acknowledgment notice sent within 5 business days containing: (1) statement that application is incomplete, (2) enumerated missing-document list, (3) applicable submission date for missing items, (4) other-mortgage-servicer statement.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.2.c_
  - Evidence ID: `csh-ev-reg-x-1024.41-b2-incomplete-acknowledgment-notice`

> **How to select your pathway:** Evidence items inferred from sub_criteria attached to this obligation. Two pathways selected by facts: pathway A if completeness review showed the app was complete; pathway B if incomplete (which then triggers the additional content-of-notice elements per §1024.41(b)(2)(i)(B)).

<sub>Derivation: `inferred_from_sub_criteria` · Source: 12 CFR § 1024.41(b)(2)(i) · Snapshot: `5c36d490608d55af` · Fetched: 2026-05-22T11:32:20Z</sub>


---

**Obligation:** Except as provided in §1024.41(c)(4)(ii), if [LENDER] receives a complete
loss mitigation application more than 37 days before a foreclosure sale,
then within 30 days of receipt [LENDER] shall evaluate the borrower for
all loss mitigation options available and provide the borrower with a
written notice stating the servicer's determination, the borrower's
accept/reject deadline under §1024.41(e), and (if applicable) the
borrower's §1024.41(h) appeal rights for loan-modification denials.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-loss-mit-application

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.41(c)(1)](https://www.law.cornell.edu/cfr/text/12/1024.41)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:7cd5f85bb5fa3c93…`  
  > (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 tha…

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 41(c)(1)-4:_ 4. Other notices. A servicer may combine other notices required by applicable law, including, without limitation, a notice with respect to an adverse action required by Regulation B, 12 CFR part 1002 , or a notice required pursuant to the Fair Credit Reporting Act , with the notice required pursuant to § 1024.41(c)(1),…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 3 pathways below (within a pathway, all items required):_

**Pathway A: Complete app received >37 days before sale — 30-day evaluation completed and written notice issued**

- **Timestamp:** System-of-record timestamp showing receipt of the COMPLETE loss-mitigation application (after the §1024.41(b)(2)(i)(B) completeness notice resolution), with the foreclosure-sale date >37 days out at receipt.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.4.a_
  - Evidence ID: `csh-ev-reg-x-1024.41-c1-complete-app-receipt-timestamp`
- **Record:** Internal evaluation record documenting that [LENDER] reviewed the borrower against ALL loss-mitigation options available from the investor/insurer, with decision rationale per option.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.4.b_
  - Evidence ID: `csh-ev-reg-x-1024.41-c1-evaluation-decision-record`
- **Document:** Copy of the §1024.41(c)(1)(ii) written determination notice, with mailed-on or delivered-on date <= 30 days from complete-app receipt timestamp. Notice must state the offered options, §1024.41(e) accept/reject deadlines, and (if loan-mod denial) §1024.41(h) appeal rights.
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.4.c_
  - Evidence ID: `csh-ev-reg-x-1024.41-c1-written-notice-sent-within-30-days`

**Pathway B: [LENDER] qualifies as a small servicer under §1024.30(b) and is exempt from §1024.41**

- **Third-party attestation:** [LENDER]'s annual attestation (or auditor letter) that [LENDER] serviced 5,000 or fewer mortgage loans for which [LENDER] (or an affiliate) is the creditor or assignee, OR qualifies as a Housing Finance Agency.
  - Retention rule: `reg-x-1024.30`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.A.2_
  - Evidence ID: `csh-ev-small-servicer-volume-attestation`
- **Document:** Written [LENDER] policy referencing §1024.30(b) and acknowledging exemption scope from §1024.41 obligations (and which §1024.41 duties [LENDER] still voluntarily applies, if any).
  - Retention rule: `reg-x-1024.30`
  - Evidence ID: `csh-ev-small-servicer-policy-acknowledging-exemption`

**Pathway C: Complete app received WITHIN the 37-day-before-sale window — (c)(1) does not attach; (c)(2) abbreviated review applies**

- **Timestamp:** System-of-record timestamp showing receipt of the complete loss-mit app with the foreclosure-sale date <=37 days from receipt — establishing the §1024.41(c)(2) abbreviated-review pathway applies in lieu of (c)(1).
  - Retention rule: `reg-x-1024.38`
  - Examiner topic pointer (operator-verify): _CFPB SEM Mortgage Servicing VII.B.4.d_
  - Evidence ID: `csh-ev-reg-x-1024.41-c1-app-within-window-timestamp`
- **Record:** Evidence that [LENDER] performed the §1024.41(c)(2) abbreviated review pathway (limited-options review + written notice as required by that subsection).
  - Retention rule: `reg-x-1024.41`
  - Evidence ID: `csh-ev-reg-x-1024.41-c2-abbreviated-review-completed`

> **How to select your pathway:** Pathways are mutually exclusive — [LENDER] satisfies \xA71024.41(c)(1) via exactly one of pathway A (complete-app eval on time), pathway B (small-servicer exemption from \xA71024.41 entirely), or pathway C (app fell inside the 37-day window so (c)(1) doesn't apply). The relevant pathway is determined by the facts at app receipt, not by [LENDER] choice. Audit binding: each app file points to one pathway with its evidence bundle.

<sub>Derivation: `snapshot_extract` · Source: 12 CFR §1024.41(c)(1) · Snapshot: `5c36d490608d55af` · Fetched: 2026-05-22T11:32:20Z</sub>


---

**Obligation:** If [LENDER] requires documents or information not in the borrower's
control to determine which loss mitigation options it will offer,
[LENDER] must exercise reasonable diligence in obtaining such documents
or information. [LENDER] must not deny a complete loss-mit application
solely because [LENDER] lacks third-party information, subject to the
(c)(4)(ii)(A)(2) exception; if the 30-day determination is delayed
due to missing third-party info, [LENDER] must send the (c)(4)(ii)(B)
interim notice describing the missing items and the status of the
request.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-loss-mit-application

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.41(c)(4)(i)](https://www.law.cornell.edu/cfr/text/12/1024.41)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:7cd5f85bb5fa3c93…`  
  > (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…

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 41(c)(2)(iii)-1:_ 1. Short-term payment forbearance program. The exemption in § 1024.41(c)(2)(iii) applies to, among other things, short-term payment forbearance programs. For purposes of § 1024.41(c)(2)(iii) , a payment forbearance program is a loss mitigation option pursuant to which a servicer allows a borrower to forgo making certai…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_
>
> _Supplement I to 12 CFR Part 1024 — Comment 41(c)(4)(i)-1:_ 1. During the first 30 days following receipt of a complete loss mitigation application. Section 1024.41(c)(4)(i) requires a servicer to act with reasonable diligence to obtain documents or information not in the borrower's control, which includes information in the servicer's control, that the servicer requires to det…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** If a complete loss mitigation application is denied for any trial or
permanent loan modification option, [LENDER] shall state in the
§1024.41(c)(1)(ii) notice the specific reason or reasons for the
denial for each such option and, if applicable, that the borrower
was not evaluated on other criteria.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-denial

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.41(d)](https://www.law.cornell.edu/cfr/text/12/1024.41)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:7cd5f85bb5fa3c93…`  
  > (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 sect…

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 41(d)-1:_ 1. Investor requirements. If a trial or permanent loan modification option is denied because of a requirement of an owner or assignee of a mortgage loan, the specific reasons in the notice provided to the borrower must identify the owner or assignee of the mortgage loan and the requirement that is the basis of the deni…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_
>
> _Supplement I to 12 CFR Part 1024 — Comment 41(d)-2:_ 2. Net present value calculation. If a trial or permanent loan modification is denied because of a net present value calculation, the specific reasons in the notice provided to the borrower must include the inputs used in the net present value calculation.
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** [LENDER] shall not make the first notice or filing required by
applicable law for any judicial or non-judicial foreclosure process
unless the borrower's mortgage loan obligation is more than 120 days
delinquent, the foreclosure is based on a due-on-sale clause violation,
or [LENDER] is joining the foreclosure action of a superior or
subordinate lienholder.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-foreclosure-referral

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.41(f)(1)](https://www.law.cornell.edu/cfr/text/12/1024.41)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:7cd5f85bb5fa3c93…`  
  > (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:

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 41(f)-1:_ 1. Prohibited activities. Section 1024.41(f) prohibits a servicer from making the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process under certain circumstances. Whether a document is considered the first notice or filing is determined on the basis of foreclosure proc…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** If a borrower submits a complete loss mitigation application after
[LENDER] has made the first foreclosure notice/filing but more than 37
days before a foreclosure sale, [LENDER] shall not move for foreclosure
judgment or order of sale, or conduct a foreclosure sale, unless: (1)
[LENDER] has sent the §1024.41(c)(1)(ii) ineligibility notice and the
appeal process is inapplicable / not requested in time / denied; (2)
the borrower rejects all offered options; or (3) the borrower fails
to perform under an agreement on a loss mitigation option.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-foreclosure-action

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.41(g)](https://www.law.cornell.edu/cfr/text/12/1024.41)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:7cd5f85bb5fa3c93…`  
  > (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 foreclosu…

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 41(g)-3:_ 3. Interaction with foreclosure counsel. The prohibitions in § 1024.41(g) against moving for judgment or order of sale or conducting a sale may require a servicer to act through foreclosure counsel retained by the servicer in a foreclosure proceeding. If a servicer has received a complete loss mitigation application, t…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** If [LENDER] receives a complete loss mitigation application 90 days or
more before a foreclosure sale, or during the §1024.41(f) pre-
foreclosure review period, [LENDER] shall permit a borrower to appeal
[LENDER]'s denial of any trial or permanent loan-modification option,
within 14 days after [LENDER] provides the §1024.41(c)(1)(ii) offer
notice; the appeal must be reviewed by different personnel than those
who evaluated the original application; and [LENDER] shall provide
a written appeal-determination notice within 30 days under (h)(4).


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-denial

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.41(h)](https://www.law.cornell.edu/cfr/text/12/1024.41)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:7cd5f85bb5fa3c93…`  
  > (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 par…

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 41(h)(3)-1:_ 1. Supervisory personnel. The appeal may be evaluated by supervisory personnel that are responsible for oversight of the personnel that conducted the initial evaluation, as long as the supervisory personnel were not directly involved in the initial evaluation of the borrower's complete loss mitigation application.
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

## §4. General Servicing Policies, Procedures, and Requirements

_12 CFR §1024.38 — General servicing policies, procedures, and requirements_

**Obligation:** [LENDER], as a mortgage servicer, shall maintain policies and procedures
that are reasonably designed to achieve the objectives set forth in
paragraph (b) of §1024.38.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.38(a)](https://www.law.cornell.edu/cfr/text/12/1024.38)  
  Fetched `2026-05-22T11:32:17Z` · Hash `sha256:5973de9b9d4ad5df…`  
  > (a) Reasonable policies and procedures. A servicer shall maintain policies and procedures that are reasonably designed to achieve the objectives set forth in paragraph (b) of this section.

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 38(a)-1:_ 1. Policies and procedures. A servicer may determine the specific policies and procedures it will adopt and the methods by which it will implement those policies and procedures so long as they are reasonably designed to achieve the objectives set forth in § 1024.38(b) . A servicer has flexibility to determine such poli…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** [LENDER]'s servicing policies and procedures must be reasonably designed
to ensure the servicer can provide accurate and timely disclosures,
investigate and respond to borrower complaints, provide borrowers with
accurate information in response to requests, provide owners/assignees
with accurate information about loans they own, submit accurate foreclosure
filings, and handle successor-in-interest communications and confirmations.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.38(b)(1)](https://www.law.cornell.edu/cfr/text/12/1024.38)  
  Fetched `2026-05-22T11:32:17Z` · Hash `sha256:5973de9b9d4ad5df…`  
  > (b) Objectives —(1) Accessing and providing timely and accurate information. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can:

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 38(b)(1)(vi)-1:_ 1. Identification of potential successors in interest. A servicer may be notified of the existence of a potential successor in interest in a variety of ways. For example, a person could indicate that there has been a transfer of ownership or of an ownership interest in the property or that a borrower has been divorced,…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** [LENDER]'s policies and procedures must be reasonably designed to ensure
accurate information on available loss-mit options, identification of all
options the borrower may be eligible for, prompt staff access to all
documents in the borrower's loss-mit application, identification of
required documents (with the §1024.41(b)(2)(i)(B) notice), proper
evaluation under §1024.41, and prompt obtaining of third-party documents
not in the borrower's control per §1024.41(c)(4).


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.38(b)(2)](https://www.law.cornell.edu/cfr/text/12/1024.38)  
  Fetched `2026-05-22T11:32:17Z` · Hash `sha256:5973de9b9d4ad5df…`  
  > (2) Properly evaluating loss mitigation applications. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can:

---

**Obligation:** [LENDER]'s policies and procedures must be reasonably designed to ensure
servicer personnel can access current documents reflecting service-provider
actions, conduct periodic service-provider reviews including compliance
audits, and share current loss-mit-evaluation and foreclosure status
information among the right servicer personnel and service-provider
personnel (including foreclosure-counsel).


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.38(b)(3)](https://www.law.cornell.edu/cfr/text/12/1024.38)  
  Fetched `2026-05-22T11:32:17Z` · Hash `sha256:5973de9b9d4ad5df…`  
  > (3) Facilitating oversight of, and compliance by, service providers. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can:

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 38(b)(3)(iii)-1:_ 1. Sharing information with service provider personnel handling foreclosure proceedings. A servicer's policies and procedures must be reasonably designed to ensure that servicer personnel promptly inform service provider personnel handling foreclosure proceedings that the servicer has received a complete loss mitigatio…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** [LENDER]'s policies and procedures must be reasonably designed to ensure,
as transferor, the timely transfer of all loan information and documents
to the transferee in a form and manner that ensures accuracy and lets the
transferee comply with its obligations; and, as transferee, the
identification and retrieval of documents that the transferor may not
have transferred.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-event

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.38(b)(4)](https://www.law.cornell.edu/cfr/text/12/1024.38)  
  Fetched `2026-05-22T11:32:17Z` · Hash `sha256:5973de9b9d4ad5df…`  
  > (4) Facilitating transfer of information during servicing transfers. The policies and procedures required by paragraph (a) of this section shall be reasonably designed to ensure that the servicer can:

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 38(b)(4)(i)-1:_ 1. Electronic document transfers. A transferor servicer's policies and procedures may provide for transferring documents and information electronically, provided that the transfer is conducted in a manner that is reasonably designed to ensure the accuracy of the information and documents transferred and that enables a…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** [LENDER] shall retain records that document actions taken with respect to
a borrower's mortgage loan account until one year after the date the
mortgage loan is discharged or servicing is transferred by [LENDER] to a
transferee servicer.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.38(c)(1)](https://www.law.cornell.edu/cfr/text/12/1024.38)  
  Fetched `2026-05-22T11:32:17Z` · Hash `sha256:5973de9b9d4ad5df…`  
  > (c) Standard requirements —(1) Record retention. A servicer shall retain records that document actions taken with respect to a borrower's mortgage loan account until one year after the date a mortgage loan is discharged…

**Official Staff Commentary expansion:**

> _Supplement I to 12 CFR Part 1024 — Comment 38(c)(1)-1:_ 1. Methods of retaining records. Retaining records that document actions taken with respect to a borrower's mortgage loan account does not necessarily mean actual paper copies of documents. The records may be retained by any method that reproduces the records accurately (including computer programs) and that ensures th…
> _Source: [https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024](https://www.law.cornell.edu/cfr/text/12/appendix-Supplement_I_to_part_1024)_

---

**Obligation:** [LENDER] shall maintain, on each mortgage loan account serviced, the
documents and data enumerated in §1024.38(c)(2)(i)–(v) (transaction
schedule including escrow and suspense; security instrument copy; servicer
personnel notes of communications; electronic-systems data-field reports;
and borrower-supplied documents under §1024.35 / §1024.41) in a manner
that facilitates compiling them into a servicing file within five days.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · cfpb-regulation):** [12 CFR §1024.38(c)(2)](https://www.law.cornell.edu/cfr/text/12/1024.38)  
  Fetched `2026-05-22T11:32:17Z` · Hash `sha256:5973de9b9d4ad5df…`  
  > (2) Servicing file. A servicer shall maintain the following documents and data on each mortgage loan account serviced by the servicer in a manner that facilitates compiling such documents and data into a servicing file w…

---

## §5. FHA Permanent Loss-Mit Framework (HUD ML 2025-12)

_FHA-specific overlay; applies only to FHA-insured loans. Effective 2025-10-01._

_HUD Mortgagee Letter 2025-12_

**Obligation:** Before offering any FHA Loss Mitigation Option, [LENDER] must verify
that the Borrowers are eligible to participate in HUD's Loss Mitigation
Program. To be eligible, the Borrower may not own other FHA-insured
real estate (except under the stated exceptions); has not been the
Borrower (except through inheritance or as co-signer only) on prior
loans on which an FHA claim has been paid within the past three years;
must not be debarred, suspended, or subject to a HUD LDP for the
relevant home-retention options; and may not have unresolved delinquent
Federal Debt for Partial Claim / Combination / Payment Supplement
options.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-defaulted-loan

**Provenance (Tier 1 · hud-ml-pdf):** [HUD ML 2025-12 — III.A.2.h.iii(A)](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-12hsgml.pdf)  
  Fetched `2026-05-22T11:23:07Z` · Hash `sha256:6376f97e582a3d32…`  
  > The Mortgagee must verify that the Borrowers are eligible to participate in HUD’s 
Loss Mitigation Program.

---

**Obligation:** For each FHA-insured forward Mortgage in Default, [LENDER] must complete
an evaluation of the Defaulted Mortgage for appropriate Loss Mitigation
Options before four monthly installments are due and unpaid, and send
a written Notice to Borrower with the determination of eligibility.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-defaulted-loan

**Provenance (Tier 1 · hud-ml-pdf):** [HUD ML 2025-12 — III.A.2.h.iii(B) 90-Day Review](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-12hsgml.pdf)  
  Fetched `2026-05-22T11:23:07Z` · Hash `sha256:6376f97e582a3d32…`  
  > A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for 
appropriate Loss Mitigation Options before four monthly installments are due and 
unpaid and send a written Notice to Borrower with the deter…

---

**Obligation:** For each Borrower who successfully completes a Trial Payment Plan (TPP)
on a Permanent Home Retention Option (Standalone Partial Claim,
Standalone Loan Modification, Combination Loan Modification and Partial
Claim, or Payment Supplement), [LENDER] must send the Permanent Home
Retention documents to the Borrower within 15 Days from the successful
completion of the TPP.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-loss-mit-workout

**Provenance (Tier 1 · hud-ml-pdf):** [HUD ML 2025-12 — III.A.2.i.iii(D)](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-12hsgml.pdf)  
  Fetched `2026-05-22T11:23:07Z` · Hash `sha256:6376f97e582a3d32…`  
  > The Mortgagee must send the Permanent Home Retention documents to the Borrower 
within 15 Days from the successful completion of a TPP.

---

## §6. FHA CWCOT Sales-Period Framework (HUD ML 2025-13)

_HUD Mortgagee Letter 2025-13_

**Obligation:** Where [LENDER] (as Mortgagee) utilizes CWCOT post-foreclosure sales
efforts on FHA-insured Mortgages with post-foreclosure sales scheduled
to occur on or after May 30, 2025, [LENDER] must list the Property for
sale to all third parties for a 60-Day period.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-cwcot-sale

**Provenance (Tier 1 · hud-ml-pdf):** [HUD ML 2025-13 — III.A.2.s.iii(F)(1)](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-13hsgml.pdf)  
  Fetched `2026-05-22T19:55:07Z` · Hash `sha256:f47838becc209583…`  
  > Mortgagees that utilize the post-foreclosure sales efforts must list 
theProperty for sale to all third parties for a 60-Day period.

---

**Obligation:** Where [LENDER] conducted a CWCOT post-foreclosure sales effort and the
Property did not sell through the post-foreclosure sales efforts,
[LENDER] must convey the Property to HUD within 30 Days of the end of
the post-foreclosure sales period.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-cwcot-sale

**Provenance (Tier 1 · hud-ml-pdf):** [HUD ML 2025-13 — III.A.2.s.iii(F)(2)(a)](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-13hsgml.pdf)  
  Fetched `2026-05-22T19:55:07Z` · Hash `sha256:f47838becc209583…`  
  > If the Property does not sell through the post-foreclosure sales 
efforts, the Mortgagee must convey the Property to HUD within 30 
Days of the end of the post-foreclosure sales period.

---

**Obligation:** For every Claim Type 06 (CWCOT) claim, [LENDER] must submit Parts A and
B of form HUD-27011 to HUD simultaneously no later than 30 Days after
the earliest of (a) the date [LENDER] acquired good and marketable
title; (b) the date a third party acquired good and marketable title;
(c) the date the Borrower or other party redeemed the Property; (d) the
date the redemption period expires; or (e) such other date as required
by the FHA Commissioner.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-cwcot-claim

**Provenance (Tier 1 · hud-ml-pdf):** [HUD ML 2025-13 — IV.A.2.d.iii](https://www.hud.gov/sites/dfiles/OCHCO/documents/2025-13hsgml.pdf)  
  Fetched `2026-05-22T19:55:07Z` · Hash `sha256:f47838becc209583…`  
  > The Mortgagee must submit Parts A and B simultaneously no later than 30 
Days after:

---

## §7. SCRA Foreclosure Stay (Servicemember Protections)

_50 U.S.C. §3953 — Mortgages and trust deeds (SCRA)_

**Obligation:** §3953 applies only to obligations on real or personal property owned by
a servicemember that (1) originated before the servicemember's military
service and for which the servicemember remains obligated, and (2) are
secured by a mortgage, trust deed, or other security in the nature of a
mortgage. [LENDER]'s SCRA workflow must identify pre-service origination
and continuing-obligation status before applying §3953 protections.


**Responsible role:** servicemember_relations_specialist (secondary: compliance_officer)

**Cadence:** per-servicemember-event

**Provenance (Tier 1 · scra-statute):** [50 U.S.C. §3953(a)](https://www.law.cornell.edu/uscode/text/50/3953)  
  Fetched `2026-05-22T11:32:23Z` · Hash `sha256:0440faadb57a441f…`  
  > (a) Mortgage as security This section applies only to an obligation on real or personal property owned by a servicemember that—

---

**Obligation:** In an action filed during, or within one year after, a servicemember's
period of military service to enforce a §3953(a) obligation, the court
may, after a hearing and on its own motion, and SHALL upon application
by a servicemember whose ability to comply is materially affected by
military service, either (1) stay the proceedings for a period as
justice and equity require, or (2) adjust the obligation to preserve
the interests of all parties. [LENDER]'s foreclosure workflow must
anticipate the mandatory court stay/adjustment on servicemember motion
when material effect on the ability to pay is shown.


**Responsible role:** servicemember_relations_specialist (secondary: foreclosure_specialist)

**Cadence:** per-servicemember-event

**Provenance (Tier 1 · scra-statute):** [50 U.S.C. §3953(b)](https://www.law.cornell.edu/uscode/text/50/3953)  
  Fetched `2026-05-22T11:32:23Z` · Hash `sha256:0440faadb57a441f…`  
  > (b) Stay of proceedings and adjustment of obligation In an action filed during, or within one year after, a servicemember ’s period of military service to enforce an obligation described in subsection (a), the court may…

---

**Obligation:** A sale, foreclosure, or seizure of property for breach of a §3953(a)
obligation shall not be valid if made during, or within one year after,
the servicemember's period of military service, except (1) upon a
court order granted before such sale, foreclosure, or seizure with a
return made and approved by the court, or (2) pursuant to a §3918
waiver agreement. For [LENDER], this is the load-bearing SCRA
constraint: non-judicial foreclosure on a covered servicemember within
the protected window is per se invalid absent a court order or §3918
agreement.


**Responsible role:** servicemember_relations_specialist (secondary: foreclosure_specialist)

**Cadence:** per-foreclosure-action

**Provenance (Tier 1 · scra-statute):** [50 U.S.C. §3953(c)](https://www.law.cornell.edu/uscode/text/50/3953)  
  Fetched `2026-05-22T11:32:23Z` · Hash `sha256:0440faadb57a441f…`  
  > (c) Sale or foreclosure A sale, foreclosure, or seizure of property for a breach of an obligation described in subsection (a) shall not be valid if made during, or within one year after, the period of the servicemember ’…


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 2 pathways below (within a pathway, all items required):_

**Pathway A: Borrower NOT a servicemember (or >1 year past discharge) — foreclosure permitted via applicable state procedure**

- **Third-party attestation:** DMDC SCRA verification result confirming the borrower is NOT a servicemember in active duty AND is not within 1 year after discharge, as of the foreclosure-initiation date.
  - Retention rule: `scra-50usc-3937`
  - Examiner topic pointer (operator-verify): _DOJ SCRA Compliance Manual III.D.1_
  - Evidence ID: `csh-ev-scra-3953-c-dmdc-non-servicemember-result`
- **Record:** Pre-foreclosure-initiation DMDC check timestamp and result archived in loan file.
  - Retention rule: `scra-50usc-3937`
  - Examiner topic pointer (operator-verify): _DOJ SCRA Compliance Manual III.D.2_
  - Evidence ID: `csh-ev-scra-3953-c-pre-foreclosure-verification-record`

**Pathway B: Borrower IS a servicemember (or within 1-year post-discharge window) — foreclosure only via court order with valid SCRA waiver/cure**

- **Third-party attestation:** DMDC SCRA verification result confirming the borrower IS a servicemember (or within 1-year post-discharge window) as of the foreclosure-initiation date.
  - Retention rule: `scra-50usc-3937`
  - Examiner topic pointer (operator-verify): _DOJ SCRA Compliance Manual III.D.3_
  - Evidence ID: `csh-ev-scra-3953-c-dmdc-servicemember-result`
- **Document:** Court order authorizing the foreclosure (per §3953(b))(2)) OR a §3918 written waiver of SCRA rights executed during or after the period of military service.
  - Retention rule: `scra-50usc-3937`
  - Examiner topic pointer (operator-verify): _DOJ SCRA Compliance Manual III.D.4_
  - Evidence ID: `csh-ev-scra-3953-c-court-order-or-waiver`
- **Document:** If court order: copy of [LENDER]'s petition to court showing the loan obligation was made during military service, the §3953 protections were addressed, and the court granted the foreclosure.
  - Retention rule: `scra-50usc-3937`
  - Examiner topic pointer (operator-verify): _DOJ SCRA Compliance Manual III.D.5_
  - Evidence ID: `csh-ev-scra-3953-c-court-petition-evidence`

> **How to select your pathway:** Two pathways selected by DMDC verification facts at foreclosure-initiation: A — borrower verified non-servicemember (or post-1-year-discharge); standard non-judicial or judicial foreclosure procedures permitted; B — borrower verified servicemember (active duty or within 1-year post-discharge); §3953(c) prohibits non-judicial foreclosure entirely — court order or §3918 waiver REQUIRED. The DMDC check must be performed pre-foreclosure-initiation; reliance on an older check at a later sale date is a separate compliance gap.

<sub>Derivation: `snapshot_extract` · Source: 50 U.S.C. §3953(c) · Snapshot: `ba9ca876255d002e` · Fetched: 2026-05-22T11:32:23Z</sub>


---

**Obligation:** A person who knowingly makes or causes to be made a sale, foreclosure,
or seizure of property prohibited by §3953(c), or who knowingly
attempts to do so, shall be fined under title 18, or imprisoned for
not more than one year, or both. Personnel involved in [LENDER]'s
foreclosure-referral pipeline (loss mit, foreclosure counsel, REO,
title) must be trained on the §3953(c) prohibition and the
knowing-violation criminal exposure under §3953(d).


**Responsible role:** servicemember_relations_specialist (secondary: compliance_officer)

**Cadence:** continuous

**Consequence of non-compliance:** Fine under title 18, or imprisonment for not more than one year, or both, under §3953(d).

**Provenance (Tier 1 · scra-statute):** [50 U.S.C. §3953(d)](https://www.law.cornell.edu/uscode/text/50/3953)  
  Fetched `2026-05-22T11:32:23Z` · Hash `sha256:0440faadb57a441f…`  
  > A person who knowingly makes or causes to be made a sale, foreclosure, or seizure of property that is prohibited by subsection (c), or who knowingly attempts to do so, shall be fined as provided in title 18, or imprisone…

---

## §8. Bankruptcy Automatic Stay

_11 U.S.C. §362 — Automatic stay_

**Obligation:** Upon the filing of a bankruptcy petition under §§301, 302, or 303 of
title 11, an automatic stay applies to all entities — including
[LENDER] as a creditor or servicer — prohibiting (1) commencement or
continuation of any judicial, administrative, or other action against
the debtor that arose pre-petition; (2) enforcement of pre-petition
judgments; (3) acts to obtain possession of or exercise control over
property of the estate; (4) acts to create, perfect, or enforce any
lien against property of the estate; (5) acts to create, perfect, or
enforce against debtor's property any lien securing a pre-petition
claim; (6) acts to collect, assess, or recover a pre-petition claim;
(7) setoff of pre-petition debt; and (8) U.S. Tax Court proceedings
on certain tax periods.


**Responsible role:** bankruptcy_specialist (secondary: default_servicing_analyst)

**Cadence:** per-bankruptcy-event

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §362(a)](https://www.law.cornell.edu/uscode/text/11/362)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:a7508eeb9755c3d9…`  
  > (a) Except as provided in subsection (b) of this section, a petition filed under section 301 , 302 , or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970 ,…

---

**Obligation:** The automatic stay prohibits [LENDER] from any act to create, perfect,
or enforce any lien against property of the bankruptcy estate. Any
post-petition lien-perfection step (mortgage assignment recording in
most jurisdictions, lis pendens, mechanic's-lien filing, etc.)
affecting estate property requires either stay relief under §362(d)
or qualification under a §362(b) exception.


**Responsible role:** bankruptcy_specialist (secondary: compliance_officer)

**Cadence:** per-bankruptcy-event

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §362(a)(4)](https://www.law.cornell.edu/uscode/text/11/362)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:a7508eeb9755c3d9…`  
  > any act to create, perfect, or enforce any lien against property of the estate;

---

**Obligation:** The automatic stay prohibits [LENDER] from any act to collect, assess,
or recover a claim against the debtor that arose pre-petition. This
includes dunning letters, late-fee assessments tied to pre-petition
arrears, demand calls, and statement language that demands payment of
pre-petition arrears — all of which must be suppressed on
bankruptcy-notice receipt.


**Responsible role:** bankruptcy_specialist (secondary: default_servicing_analyst)

**Cadence:** per-bankruptcy-event

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §362(a)(6)](https://www.law.cornell.edu/uscode/text/11/362)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:a7508eeb9755c3d9…`  
  > any act to collect, assess, or recover a claim against the debtor that arose before the commencement of the case under this title;

---

**Obligation:** On request of a party in interest and after notice and a hearing, the
bankruptcy court shall grant relief from the stay (by terminating,
annulling, modifying, or conditioning it) (1) for cause, including
lack of adequate protection; (2) with respect to property where the
debtor lacks equity and the property is not necessary to an effective
reorganization; (3) on single-asset real estate, subject to the
90-day reorganization-plan/monthly-payment standards; and (4) on real
property where the petition was part of a scheme to delay, hinder, or
defraud creditors through unauthorized transfers or multiple filings.
[LENDER] seeking to foreclose on mortgaged property must obtain stay
relief under one of these grounds unless the loan qualifies for a
§362(b) exception or the stay has terminated under §362(c).


**Responsible role:** bankruptcy_specialist (secondary: foreclosure_specialist)

**Cadence:** per-bankruptcy-event

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §362(d)](https://www.law.cornell.edu/uscode/text/11/362)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:a7508eeb9755c3d9…`  
  > (d) On request of a party in interest and after notice and a hearing, the court shall grant relief from the stay provided under subsection (a) of this section, such as by terminating, annulling, modifying, or conditionin…

---

**Obligation:** An individual injured by any willful violation of the automatic stay
shall recover actual damages, including costs and attorneys' fees,
and, in appropriate circumstances, may recover punitive damages. For
[LENDER], the willful-violation standard does not require malice —
knowing of the petition and continuing the violating act is generally
sufficient. Internal controls must include reliable bankruptcy-flag
propagation across collection, foreclosure, escrow, and assessment
systems to prevent §362(k) exposure.


**Responsible role:** bankruptcy_specialist (secondary: compliance_officer)

**Cadence:** continuous

**Consequence of non-compliance:** Actual damages, costs and attorneys' fees, and possibly punitive damages under §362(k)(1).

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §362(k)(1)](https://www.law.cornell.edu/uscode/text/11/362)  
  Fetched `2026-05-22T11:32:20Z` · Hash `sha256:a7508eeb9755c3d9…`  
  > Except as provided in paragraph (2), an individual injured by any willful violation of a stay provided by this section shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances,…

---

## §9. Chapter 13 Plan Cure of Arrearages

_11 U.S.C. §1322 — Contents of plan (Chapter 13)_

**Obligation:** A Chapter 13 plan may modify the rights of holders of secured claims —
but NOT a claim secured only by a security interest in real property
that is the debtor's principal residence. [LENDER] holding a first-lien
mortgage on the debtor's principal residence is protected by this
anti-modification rule from cramdown of principal balance, interest
rate, or maturity (subject to the §1322(c)(2) exception where the
final payment is due before the plan's final payment).


**Responsible role:** bankruptcy_specialist (secondary: compliance_officer)

**Cadence:** per-chapter-13-plan

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §1322(b)(2)](https://www.law.cornell.edu/uscode/text/11/1322)  
  Fetched `2026-05-22T11:32:22Z` · Hash `sha256:3ce1478768bf37aa…`  
  > modify the rights of holders of secured claims, other than a claim secured only by a security interest in real property that is the debtor’s principal residence, or of holders of unsecured claims, or leave unaffected the…

---

**Obligation:** A Chapter 13 plan may provide for the curing or waiving of any default.
[LENDER] processing a confirmed Chapter 13 plan that cures a mortgage
arrearage must apply payments consistent with the plan's cure schedule
(typically via trustee disbursement) and recognize the contractual
default as cured upon completion.


**Responsible role:** bankruptcy_specialist (secondary: default_servicing_analyst)

**Cadence:** per-chapter-13-plan

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §1322(b)(3)](https://www.law.cornell.edu/uscode/text/11/1322)  
  Fetched `2026-05-22T11:32:22Z` · Hash `sha256:3ce1478768bf37aa…`  
  > provide for the curing or waiving of any default;

---

**Obligation:** Notwithstanding §1322(b)(2), a Chapter 13 plan may provide for curing
any default within a reasonable time AND maintenance of ongoing
payments while the case is pending on any secured claim where the
last payment is due after the plan's final payment date — the
standard treatment of long-term mortgage debt in Chapter 13.
[LENDER]'s bankruptcy workflow must accept post-petition ongoing
payments (typically conduit through the Chapter 13 trustee) and
arrearage cure payments concurrently per the confirmed plan.


**Responsible role:** bankruptcy_specialist (secondary: default_servicing_analyst)

**Cadence:** per-chapter-13-plan

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §1322(b)(5)](https://www.law.cornell.edu/uscode/text/11/1322)  
  Fetched `2026-05-22T11:32:22Z` · Hash `sha256:3ce1478768bf37aa…`  
  > notwithstanding paragraph (2) of this subsection, provide for the curing of any default within a reasonable time and maintenance of payments while the case is pending on any unsecured claim or secured claim on which the…

---

**Obligation:** Notwithstanding §1322(b)(2) and applicable nonbankruptcy law, a default
that gave rise to a lien on the debtor's principal residence may be
cured under §1322(b)(3) or (5) until the residence is sold at a
foreclosure sale conducted in accordance with applicable nonbankruptcy
law. [LENDER]'s foreclosure team must therefore recognize that a
Chapter 13 petition filed at any time prior to the actual foreclosure
sale can revive cure rights on the mortgage default.


**Responsible role:** bankruptcy_specialist (secondary: foreclosure_specialist)

**Cadence:** per-bankruptcy-event

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §1322(c)(1)](https://www.law.cornell.edu/uscode/text/11/1322)  
  Fetched `2026-05-22T11:32:22Z` · Hash `sha256:3ce1478768bf37aa…`  
  > a default with respect to, or that gave rise to, a lien on the debtor’s principal residence may be cured under paragraph (3) or (5) of subsection (b) until such residence is sold at a foreclosure sale that is conducted i…

---

**Obligation:** If a Chapter 13 plan proposes to cure a default, the amount necessary
to cure shall be determined in accordance with the underlying agreement
and applicable nonbankruptcy law (notwithstanding §1322(b)(2) and
§§506(b) and 1325(a)(5)). [LENDER]'s proof-of-claim arrearage
calculation must therefore reflect the note, mortgage, and applicable
state law — not a unilateral §506(b)-only figure.


**Responsible role:** bankruptcy_specialist (secondary: compliance_officer)

**Cadence:** per-proof-of-claim

**Provenance (Tier 1 · bankruptcy-statute):** [11 U.S.C. §1322(e)](https://www.law.cornell.edu/uscode/text/11/1322)  
  Fetched `2026-05-22T11:32:22Z` · Hash `sha256:3ce1478768bf37aa…`  
  > Notwithstanding subsection (b)(2) of this section and sections 506(b) and 1325(a)(5) of this title, if it is proposed in a plan to cure a default, the amount necessary to cure the default, shall be determined in accordan…

---

## §10. FNMA Servicing Guide D1-1 — General Default-Servicing Standards

_Fannie Mae overlay; applies only to Fannie-serviced conventional loans._

_FNMA Servicing Guide D1-1 — Requests for the Release of Property and/or Charge-Off of a Mortgage Loan_

**Obligation:** To request a review for a release, or partial release, of property
securing a Fannie Mae mortgage loan, the borrower must submit an
Application for Release of Security (Form 236) to [LENDER]. An
application is considered complete when all required documentation and
information, as outlined within the Servicing Guide and Form 236, has
been obtained. When [LENDER] receives a complete application, [LENDER]
must counsel the borrower to consider the costs and benefits of any
action covered by this policy prior to evaluating the request and must
then evaluate each request in accordance with the Guide.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-event

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D1-1-01](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-22T23:53:19Z` · Hash `sha256:89df66c43baad07f…`  
  > To request a review for a release, or partial release, of property securing a mortgage loan, the borrower must

---

**Obligation:** With the exception of eminent domain actions that fall within the
policies in the Servicing Guide, all requests related to Texas Section
50(a)(6) loans must be escalated to Fannie Mae for review and
decisioning; [LENDER] must submit the complete application and all
required documentation to Fannie Mae's SF CPM division.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-event

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D1-1-01](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-22T23:53:19Z` · Hash `sha256:89df66c43baad07f…`  
  > that extenuating circumstances exist, the servicer must submit the request to Fannie Mae for a non-delegated

---

## §11. FNMA Servicing Guide D2-1 — Working with a Borrower Facing Default

_FNMA Servicing Guide D2-1 — Working with a Borrower Who is Facing Default_

**Obligation:** [LENDER] must consider available workout options when [LENDER] is
notified or otherwise becomes aware of events or factors that are
expected to cause the borrower's monthly payment to be in default
within the next 90 days ("imminent default").


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-event

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-1-01](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-22T23:53:19Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must consider available workout options when the servicer is notified or otherwise becomes aware

---

**Obligation:** [LENDER] must not solicit borrowers who are current or less than 30
days delinquent for a workout option.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-1-01](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-22T23:53:19Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must not solicit borrowers who are current or less than 30 days delinquent for a workout option.

---

## §12. FNMA Servicing Guide D2-2 — Requirements for Contacting a Borrower

_FNMA Servicing Guide D2-2 — Requirements for Contacting a Borrower_

**Obligation:** [LENDER] (servicer) shall make every attempt to achieve Quality
Right Party Contact (QRPC) with the borrower, co-borrower, or
trusted advisor. The purpose of QRPC is to determine the
delinquency reason, occupancy status, ability to repay, educate
the borrower on workout options, and obtain a commitment to
resolve the delinquency.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-delinquency

**Consequence of non-compliance:** Failure to attempt QRPC is a FNMA Servicing Guide breach; reduces workout-option uptake and increases foreclosure risk.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-01 — Achieving Quality Right Party Contact](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must make every attempt to achieve QRPC.

---

**Obligation:** [LENDER] (servicer) shall begin outbound contact attempts no
later than the 36th day of delinquency and shall continue
outbound contact attempts every 7 days until QRPC is achieved
(and/or borrower adheres to a workout agreement), the delinquency
is resolved, a complete Borrower Response Package (BRP) is
received, the borrower has provided a promise to pay (≤30 days),
or QRPC is achieved and the borrower indicates no interest in a
workout option. [LENDER] is authorized but not required to begin
earlier than day 36 (e.g., using behavioral models).


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-delinquency

**Consequence of non-compliance:** Failure to attempt timely outbound contact is a FNMA Servicing Guide breach + state-law early-default-contact exposure.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must begin outbound contact attempts no later than the 36th day of delinquency and must continue every 7 days


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 5 pathways below (within a pathway, all items required):_

**Pathway A: Stopping condition A: QRPC achieved AND borrower adheres to workout option agreement**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp`
- **Record:** Servicing-system QRPC-achievement record per D2-2-01 (delinquency reason + occupancy + capacity + workout-options-educated + commitment) timestamped during the outbound-contact campaign.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.b_
  - Evidence ID: `csh-ev-fnma-d2-2-qrpc-achievement-record`
- **Record:** Workout-option-agreement record + payment history showing borrower performance against the agreed terms (e.g., TPP payments timely).
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-3.a_
  - Evidence ID: `csh-ev-fnma-d2-2-workout-adherence-record`

**Pathway B: Stopping condition B: delinquency resolved**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp-resolved`
- **Record:** Payment record showing all delinquent amounts paid current; account-status change to performing.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.c_
  - Evidence ID: `csh-ev-fnma-d2-2-resolution-payment-record`

**Pathway C: Stopping condition C: complete Borrower Response Package (BRP) received per D2-2-05**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp-brp`
- **Record:** BRP-completeness record per D2-2-05 (all required documents received), with completeness-determination timestamp triggering the contact-attempt stop.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.d_
  - Evidence ID: `csh-ev-fnma-d2-2-complete-brp-receipt`

**Pathway D: Stopping condition D: borrower provided a promise to pay (≤30 days) the delinquent amount**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp-promise`
- **Record:** Servicing-system promise-to-pay record with (1) promised amount, (2) promised pay date NOT exceeding 30 days from promise date, (3) recorded source (borrower-confirmed).
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.e_
  - Evidence ID: `csh-ev-fnma-d2-2-promise-to-pay-record`

**Pathway E: Stopping condition E: QRPC achieved AND borrower indicates no interest in any workout option**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp-no-interest`
- **Record:** QRPC-achievement record per D2-2-01 PLUS explicit borrower no-interest declaration captured in servicing notes (with borrower-confirmation source attribution).
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.f_
  - Evidence ID: `csh-ev-fnma-d2-2-qrpc-no-interest-record`

> **How to select your pathway:** Five mutually-exclusive stopping conditions per FNMA D2-2-02. The outbound-contact-attempt obligation is fully satisfied when ANY ONE of the five conditions is met (after which continued outbound contact is no longer required by D2-2-02, though the 60-day judicial / 30-day non-judicial pre-foreclosure-sale stop rule of D2-2-02 still applies separately). Selection by facts: the servicing system records which stopping condition triggered on a given delinquency cycle. Multiple pathways may apply to the same loan over time across different delinquency cycles; each cycle gets exactly one terminal pathway.

<sub>Derivation: `snapshot_extract` · Source: FNMA Servicing Guide D2-2-02 · Snapshot: `f662f911b3ddaf1d` · Fetched: 2026-05-25T14:09:40Z</sub>


---

**Obligation:** Unless required by applicable law to continue outbound contact
attempts to the delinquent borrower, [LENDER] (servicer) shall
discontinue all outbound contact attempts: (a) 60 days prior to
the judicial foreclosure sale date, or (b) 30 days prior to a
non-judicial foreclosure sale date. The pre-sale outbound-stop
rule prevents harassment-pattern claims while foreclosure
proceedings finalize.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-foreclosure

**Consequence of non-compliance:** Continued outbound contact during the no-contact pre-sale window can support harassment / unfair-practices claims.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > the servicer must discontinue all outbound contact attempts

---

**Obligation:** When [LENDER] (servicer) communicates with the borrower during
outbound contact attempts, [LENDER] shall emphasize the
importance of making payments on or prior to their due dates.
The messaging requirement reinforces FNMA's preference for
payment-current resolution before workout-option escalation.


**Responsible role:** loss_mitigation_specialist (secondary: unassigned)

**Cadence:** per-outbound-attempt

**Consequence of non-compliance:** Off-message outbound contact scripts undercut FNMA payment-current preference and weaken servicing-performance metrics.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > the servicer must emphasize the importance of making payments on or prior to their due dates.

---

**Obligation:** [LENDER] (servicer) shall send a payment reminder notice to the
borrower no later than the 20th day of the month if the payment
has not been received. Exceptions apply when (a) the mortgage
loan is a second lien mortgage loan (see D2-2-09) or (b) the
borrower is subject to an active forbearance plan (without regard
to whether the plan provides for reduced or suspended payments).
The notice must address the borrower by name, state a desire to
work with the borrower to preserve homeownership, state the
amount of late charges due (if applicable), and explain late-
payment-credit-reporting consequences.


**Responsible role:** unassigned (secondary: loss_mitigation_specialist)

**Cadence:** per-late-payment-month

**Consequence of non-compliance:** Missing payment-reminder notice is a FNMA Servicing Guide breach and reduces borrower opportunity to cure before later-stage collection.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-03 — Sending a Payment Reminder Notice](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must send a payment reminder notice to the borrower no later than the 20th day of the month if the payment has not been received

---

## §13. FNMA Servicing Guide D2-3 — Home Retention and Liquidation Workout Options

_FNMA Servicing Guide D2-3 — Fannie Mae's Home Retention and Liquidation Workout Options_

**Obligation:** [LENDER] must not require the borrower to make an upfront cash
contribution to be considered for a workout option on a Fannie Mae
mortgage loan.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-loss-mit-event

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-3.1-01](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-22T23:53:19Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must not require the borrower to make an upfront cash contribution to be considered for a workout

---

**Obligation:** [LENDER] must not modify a mortgage loan while it is in an MBS pool
(including PFP mortgage loans); performing MBS mortgage loans are
ineligible for purchase from the related MBS pool for the purpose of
modifying the mortgage loan term, interest rate, UPB, or other major
characteristic(s) of the mortgage loan.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-loss-mit-event

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-3.1-02](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-22T23:53:19Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must not modify a mortgage loan while it is in an MBS pool (including PFP mortgage loans).

---

## §14. FHLMC Single-Family Guide Chapter 9101 — Delinquency Management

_Freddie Mac overlay; applies only to Freddie-serviced conventional loans._

_Freddie Mac Single-Family Seller/Servicer Guide Chapter 9101 — Delinquency Management for Mortgages Secured by Primary Residences_

**Obligation:** [LENDER] must treat each Delinquency individually by varying the
collection techniques to fit the individual circumstances, and must
avoid establishing a fixed routine — particularly when dealing with
chronically delinquent Borrowers.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-delinquency-event

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9101.1(a)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > The Servicer must treat each Delinquency individually by varying the collection techniques

---

**Obligation:** If there is a known potential risk of loss or ownership to Freddie
Mac, [LENDER] must refer the Borrower for loss mitigation
immediately.


**Responsible role:** default_servicing_analyst (secondary: loss_mitigation_specialist)

**Cadence:** per-risk-event

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9101.1(a)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > If there is a known potential risk of loss or ownership to Freddie Mac, the Borrower must be

---

**Obligation:** If an ACH payment cannot be processed on the specified date the
Borrower has agreed to, [LENDER] must begin efforts to contact the
Borrower within 48 hours to determine the reason for the missed
payment.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per-failed-ach-event

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9101.1(b)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > processed on the specified date the Borrower has agreed to, the Servicer must begin efforts to

---

## §15. FHLMC Single-Family Guide Chapter 9201 — Loss Mitigation Evaluation Hierarchy

_Freddie Mac Single-Family Seller/Servicer Guide Chapter 9201 — Freddie Mac Loss Mitigation Evaluation Hierarchy and Performance Standards_

**Obligation:** If a Borrower contacts [LENDER] for loss mitigation assistance,
[LENDER] must first determine if the Borrower can bring the loan
current through reinstatement, and only then proceed through the
workout-option hierarchy set forth in Section 9201.2(a).


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-loss-mit-event

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9201.2(a)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > If a Borrower contacts the Servicer for loss mitigation assistance, the Servicer must first

---

**Obligation:** [LENDER] must first determine if the Borrower has a temporary or
permanent hardship in conducting the loss mitigation evaluation
hierarchy, because the workout-option order depends on the hardship
classification.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-loss-mit-event

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9201.2(a)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > 1. The Servicer must first determine if the Borrower has a temporary or permanent hardship

---

**Obligation:** [LENDER]'s loss mitigation activities must include pursuing
reinstatement as the first option, analyzing the Borrower's financial
situation and intentions, determining property value and Freddie
Mac's potential loss, pursuing alternatives to foreclosure in
accordance with the Section 9201.2 hierarchy, and continuing to
pursue alternatives even after foreclosure has been initiated.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-loss-mit-event

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9201.3](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > The Servicer’s loss mitigation activities must include:

---

## §16. FHLMC Single-Family Guide Chapter 9203 — Reinstatements and Relief Options

_Freddie Mac Single-Family Seller/Servicer Guide Chapter 9203 — Reinstatements and Relief Options_

**Obligation:** [LENDER] must accept full reinstatement of a Mortgage if the payment,
in cash or certified funds, includes the total delinquent amount,
accrued interest and unpaid principal, actual legal costs, BPO costs
(if applicable), inspection fees, and accrued late charges.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-reinstatement-tender

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9203.1(d)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > The Servicer must accept full reinstatement of a Mortgage if the payment, in cash or certified

---

**Obligation:** [LENDER] must not refuse to accept a full reinstatement if the
Borrower offers to pay all amounts due except for the cost of the
BPO, inspection fees, and accrued late charges; arrangements for
those charges may be made after the Mortgage is reinstated.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-reinstatement-tender

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9203.1(d)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > The Servicer must not refuse to accept a full reinstatement if the Borrower offers to pay all

---

**Obligation:** [LENDER] must not charge or collect from the Borrower an amount that
exceeds the expense limits specified in Exhibit 57A, except in cases
where a higher expense amount is legally allowable and recoverable;
and the payment must not include reimbursement for costs the Servicer
incurred if applicable law prohibits collection of those costs from
the Borrower.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-reinstatement-event

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9203.1(c)(i)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > The Servicer must not charge or collect from the Borrower an amount that exceeds the

---

## §17. FHLMC Single-Family Guide Chapter 9204 — Freddie Mac Workout Options

_Freddie Mac Single-Family Seller/Servicer Guide Chapter 9204 — Freddie Mac Workout Options_

**Obligation:** [LENDER] must evaluate Borrowers in accordance with the Freddie Mac
loss mitigation evaluation hierarchy set forth in Section 9201.2 for
Freddie Mac's available workout options including Mortgage
modifications, workout Mortgage assumptions, short sales,
deeds-in-lieu of foreclosure, and charge-offs.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-workout-evaluation

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9204.1(a)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > Servicers must evaluate Borrowers in accordance with the Freddie Mac loss mitigation

---

**Obligation:** [LENDER] must collect and analyze the required documentation and
information in accordance with Chapter 9204 and Chapter 9202 as a
required step for completing a workout.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-workout-event

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9204.2(a)(i)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > 1. The Servicer must collect and analyze the required documentation and information in

---

**Obligation:** [LENDER] must perform all activities required for closing a workout
within Freddie Mac's required time frames, including settlement
transactions, recording required documents, reporting the transaction
to Freddie Mac, remitting funds collected, and submitting requests
for reimbursement of allowable expenses within 30 days of settlement.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-workout-closing

**Provenance (Tier 1 · fhlmc-guide):** [Freddie Mac Single-Family Seller/Servicer Guide Section 9204.2(a)(i)](https://guide.freddiemac.com/ci-guide)  
  Fetched `2026-05-23T00:27:40Z` · Hash `sha256:9a1b23e5024bb369…`  
  > 4. The Servicer must perform all activities required for closing a workout within Freddie

---

## §18. HUD Handbook 4000.1 III.A.2.h — Loss Mitigation Program (FHA)

_FHA-specific overlay; applies only to FHA-insured loans._

_HUD Handbook 4000.1 III.A.2.h — Loss Mitigation Program_

**Obligation:** Before offering any FHA Loss Mitigation Option, [LENDER] must verify
that the Borrowers are eligible to participate in HUD's Loss
Mitigation Program (no other FHA-insured real estate beyond the
stated exceptions; no FHA-claim-paid prior loan within the past three
years; no debarment/suspension/LDP for Loan Mod, Partial Claim,
Combination, or Payment Supplement; no unresolved delinquent Federal
Debt for Partial Claim / Combination / Payment Supplement).


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-loss-mit-evaluation

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.h.iii(A) — Eligibility to Participate in HUD Programs](https://www.hud.gov/hud-partners/single-family-handbook-4000-1)  
  Fetched `2026-05-23T00:28:40Z` · Hash `sha256:411430f29b13f9b5…`  
  > The Mortgagee must verify that the Borrowers are eligible to participate in HUD’s

---

**Obligation:** For each FHA-insured forward Mortgage in Default, [LENDER] must
complete an evaluation of the Defaulted Mortgage for appropriate Loss
Mitigation Options before four monthly installments are due and
unpaid, and send a written Notice to Borrower with the determination
of eligibility.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-defaulted-loan

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.h.iii(B) — 90-Day Review](https://www.hud.gov/hud-partners/single-family-handbook-4000-1)  
  Fetched `2026-05-23T00:28:40Z` · Hash `sha256:411430f29b13f9b5…`  
  > A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for

---

**Obligation:** [LENDER] must not condition the use of a Loss Mitigation Option on
the receipt of a Borrower's cash contribution or a Borrower's payment
of fees or charges.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-loss-mit-offer

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.h.iv(B) — Standard](https://www.hud.gov/hud-partners/single-family-handbook-4000-1)  
  Fetched `2026-05-23T00:28:40Z` · Hash `sha256:411430f29b13f9b5…`  
  > The Mortgagee must not condition the use of a Loss Mitigation Option on the receipt

---

## §19. HUD Handbook 4000.1 III.A.2.i — Loss Mitigation Home Retention Options

_HUD Handbook 4000.1 III.A.2.i — Loss Mitigation Home Retention Options_

**Obligation:** [LENDER] must review the Borrower for a Repayment Plan if the Borrower
affirms the monthly installment amount required under the terms of
the Repayment Plan Agreement is affordable.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-loss-mit-evaluation

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Standard](https://www.hud.gov/hud-partners/single-family-handbook-4000-1)  
  Fetched `2026-05-23T00:28:40Z` · Hash `sha256:411430f29b13f9b5…`  
  > The Mortgagee must review the Borrower for a Repayment Plan if the Borrower

---

**Obligation:** [LENDER] must ensure the term of the Repayment Plan does not exceed
24 months, and must require the delinquency to be repaid in equal
monthly installments, in addition to the Mortgage Payments, over the
term of the Repayment Plan.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-loss-mit-workout

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.i.ii(A)(2) — Standard](https://www.hud.gov/hud-partners/single-family-handbook-4000-1)  
  Fetched `2026-05-23T00:28:40Z` · Hash `sha256:411430f29b13f9b5…`  
  > • ensure the term of the Repayment Plan does not exceed 24 months; and

---

**Obligation:** [LENDER] must provide the Borrower with the Repayment Plan Agreement
at least 15 Days before the date the first installment is due. The
Borrower is not required to sign and return the Repayment Plan
Agreement.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-loss-mit-workout

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.i.ii(A)(4) — Repayment Plan Agreement](https://www.hud.gov/hud-partners/single-family-handbook-4000-1)  
  Fetched `2026-05-23T00:28:40Z` · Hash `sha256:411430f29b13f9b5…`  
  > The Mortgagee must provide the Borrower with the Repayment Plan Agreement

---

## §20. HUD Handbook 4000.1 III.A.2.j — Home Disposition Options

_HUD Handbook 4000.1 III.A.2.j — Home Disposition Options_

**Obligation:** [LENDER] must review Borrowers for Home Disposition Options who are
unable to sustain the Mortgage with the assistance of a Loss
Mitigation Home Retention Option.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-loss-mit-evaluation

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.j.i — Standard](https://www.hud.gov/hud-partners/single-family-handbook-4000-1)  
  Fetched `2026-05-23T00:28:40Z` · Hash `sha256:411430f29b13f9b5…`  
  > The Mortgagee must review Borrowers for Home Disposition Options who are unable to

---

**Obligation:** [LENDER] must notify the Borrower that they may be able to avoid
foreclosure by selling their home with a traditional sale or a PFS
Option.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-loss-mit-evaluation

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.j.i — Standard](https://www.hud.gov/hud-partners/single-family-handbook-4000-1)  
  Fetched `2026-05-23T00:28:40Z` · Hash `sha256:411430f29b13f9b5…`  
  > The Mortgagee must notify the Borrower that they may be able to avoid foreclosure by

---

**Obligation:** If the Borrower advises that their financial situation has improved
during the PFS or DIL process and wants to retain the Property,
[LENDER] must review the Borrower for one additional Loss Mitigation
Home Retention Option.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per-borrower-update

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.j.i — Standard](https://www.hud.gov/hud-partners/single-family-handbook-4000-1)  
  Fetched `2026-05-23T00:28:40Z` · Hash `sha256:411430f29b13f9b5…`  
  > If the Borrower advises that their financial situation has improved during the PFS or DIL

---

## §21. Ginnie Mae MBS Guide Chapter 18 — Mortgage Delinquency and Default

_GNMA overlay; applies only to issuers/servicers of GNMA-pooled FHA/VA/USDA loans._

_Ginnie Mae MBS Guide Chapter 18 — Mortgage Delinquency and Default_

**Obligation:** No [ISSUER] or subcontract servicer may, without the written
permission of Ginnie Mae, remove a loan, whether pursuant to a
substitution or otherwise, from a pool or loan package, or reduce
a balance on a pooled loan for any reason not specifically
authorized in the applicable Guaranty Agreement or in this Guide.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · gnma-mbs-guide):** [Ginnie Mae MBS Guide Chapter 18, Part 2 — Removal of Loans from Pools and Loan Packages](https://www.ginniemae.gov/issuers/program_guidelines/MBSGuideLib/Chapter_18.pdf)  
  Fetched `2026-05-23T00:30:00Z` · Hash `sha256:4bed306519b3f3cb…`  
  > No Issuer or subcontract servicer may, without the written permission of Ginnie Mae, remove a

---

**Obligation:** [ISSUERS] are prohibited from modifying the terms of loans held in
Ginnie Mae pools that affect the amount or duration of loan payments.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Provenance (Tier 1 · gnma-mbs-guide):** [Ginnie Mae MBS Guide Chapter 18, Part 3, Section B(4) — Prohibition on Modification of Pooled Loans](https://www.ginniemae.gov/issuers/program_guidelines/MBSGuideLib/Chapter_18.pdf)  
  Fetched `2026-05-23T00:30:00Z` · Hash `sha256:4bed306519b3f3cb…`  
  > Issuers are prohibited from modifying the terms of loans held in Ginnie Mae pools that

---

**Obligation:** [ISSUERS] must maintain delinquency rates on outstanding pools and
loan packages below the threshold levels described in Chapter 18
Part 3 Section C. Data used to measure delinquency rates will come
from the RFS Issuer Monthly Report of Pool and Loan Data
(Appendix VI-19).


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** monthly

**Provenance (Tier 1 · gnma-mbs-guide):** [Ginnie Mae MBS Guide Chapter 18, Part 3, Section C — Acceptable Delinquency Rates](https://www.ginniemae.gov/issuers/program_guidelines/MBSGuideLib/Chapter_18.pdf)  
  Fetched `2026-05-23T00:30:00Z` · Hash `sha256:4bed306519b3f3cb…`  
  > Issuers must maintain delinquency rates on outstanding pools and loan packages below the

---

## §22. USDA HB-1-3555 Chapter 17 — Regular Servicing (Performing Loans)

_USDA overlay; applies only to USDA-guaranteed loans._

_USDA HB-1-3555 ch17 bootstrap_

**Obligation:** The Agency must be notified within 15 days of a sale or
servicing transfer by submitting Form RD 3555-11 to the Single
Family Housing Servicing Branch, Lender Reporting Section.
Agency notification should be password protected or encrypted
and emailed to rd.so.hsb@usda.gov.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** per_event

**Provenance (Tier 1 · usda-handbook-hb-1-3555):** [USDA HB-1-3555 Chapter 17.1.C — Notifying the Agency](https://www.rd.usda.gov/sites/default/files/3555-1chapter17.pdf)  
  Fetched `2026-05-23T01:50:00Z` · Hash `sha256:da0fdbdb5f6afb80…`  
  > The Agency must be notified within 15 days of a sale or servicing transfer by

---

**Obligation:** [SVCRS] are required to report monthly loan status (203) and
monthly loan default status (264) reports for all SFHGLP loans
in their portfolio via Electronic Status Reporting (ESR) by
the sixth government workday of each month. [SVCRS] are also
required to review and correct status and default reject errors
starting on the 13th business day of the month through the last
day of the calendar month.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** monthly

**Provenance (Tier 1 · usda-handbook-hb-1-3555):** [USDA HB-1-3555 Chapter 17.3 — Reporting Requirements](https://www.rd.usda.gov/sites/default/files/3555-1chapter17.pdf)  
  Fetched `2026-05-23T01:50:00Z` · Hash `sha256:da0fdbdb5f6afb80…`  
  > Servicers are required to report monthly loan status (203) and monthly loan default

---

**Obligation:** [SVCRS] must have adequate internal control processes to
ensure that real estate taxes, assessments, and flood and
hazard insurance premiums are paid as required for all
property securing a guaranteed loan. Escrow funds may be used
only for the purpose for which they were collected. Escrow
accounts for all guaranteed loans must be administered in
accordance with all applicable regulations and must be insured
by the FDIC or the NCUA insurance fund.


**Responsible role:** default_servicing_analyst (secondary: compliance_officer)

**Cadence:** continuous

**Consequence of non-compliance:** Taxes / insurance that accrued prior to last-paid-installment due date are excluded from any potential loss claim.

**Provenance (Tier 1 · usda-handbook-hb-1-3555):** [USDA HB-1-3555 Chapter 17.2.C — Ensuring Payment of Taxes and Insurance](https://www.rd.usda.gov/sites/default/files/3555-1chapter17.pdf)  
  Fetched `2026-05-23T01:50:00Z` · Hash `sha256:da0fdbdb5f6afb80…`  
  > Servicers must have adequate internal control processes to ensure that real estate

---

## §23. USDA HB-1-3555 Chapter 18 — Servicing Non-Performing Loans (Loss Mitigation)

_USDA HB-1-3555 ch18 bootstrap_

**Obligation:** [SVCR] must attempt to make verbal or written contact with the
borrower on or before the day an account becomes 20 days past
due. [SVCR] must send a letter to the borrower if unable to
reach the borrower by telephone. This contact must solicit
enough information to evaluate the borrower's ability to cure
the default and determine additional servicing actions.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per_event

**Consequence of non-compliance:** Failure to attempt contact before the loan is 65 days past due may result in claim denial.

**Provenance (Tier 1 · usda-handbook-hb-1-3555):** [USDA HB-1-3555 Chapter 18.3.A — Initial Contact](https://www.rd.usda.gov/sites/default/files/3555-1chapter18.pdf)  
  Fetched `2026-05-23T01:50:00Z` · Hash `sha256:bfa1bfa32aa18093…`  
  > The servicer must attempt to make verbal or written contact with the borrower on or

---

**Obligation:** Before an account becomes 60 days past due and if there is no
payment arrangement in place, [LENDER] must send a certified
letter to the borrower requesting an interview for the purpose
of resolving the past due account. The letter should emphasize
the importance of meeting the debt obligation and explain the
negative impact of non-repayment on the borrower's credit
history.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per_event

**Provenance (Tier 1 · usda-handbook-hb-1-3555):** [USDA HB-1-3555 Chapter 18.3.C — Send Certified Letter to the Borrower](https://www.rd.usda.gov/sites/default/files/3555-1chapter18.pdf)  
  Fetched `2026-05-23T01:50:00Z` · Hash `sha256:bfa1bfa32aa18093…`  
  > in place, the lender must send a certified letter to the borrower requesting an interview for

---

**Obligation:** On or before the day an account becomes 60 days past due and
before initiating a liquidation action, [SVCR] must assess
the physical condition of the property, determine occupancy,
and take the necessary steps to preserve and protect the
property.


**Responsible role:** loss_mitigation_specialist (secondary: default_servicing_analyst)

**Cadence:** per_event

**Consequence of non-compliance:** Failure to order an inspection within 65 days past due reduces accrued interest in the claim by 10%; failure to inspect / secure abandoned property reduces the loss claim by the dollar value of attributable loss.

**Provenance (Tier 1 · usda-handbook-hb-1-3555):** [USDA HB-1-3555 Chapter 18.3.D — Inspect the Property](https://www.rd.usda.gov/sites/default/files/3555-1chapter18.pdf)  
  Fetched `2026-05-23T01:50:00Z` · Hash `sha256:bfa1bfa32aa18093…`  
  > On or before the day an account becomes 60 days past due and before initiating a

---

## §24. VA Servicer Handbook M26-4 Chapter 5 — Loss Mitigation

_VA overlay; applies only to VA-guaranteed loans._

_VA Servicer Handbook M26-4 Chapter 5 — Loss Mitigation_

**Obligation:** [SERVICER] must offer the Special Forbearance when the borrower
indicates they can repay the missed payments in a lump sum, as
outlined on the VA Home Retention Waterfall.


**Responsible role:** loss_mitigation_specialist

**Cadence:** per_loan

**Provenance (Tier 1 · va-handbook-m26-4):** [VA Servicer Handbook M26-4 Chapter 5 — Loss Mitigation](https://benefits.va.gov/WARMS/M26_4.asp)  
  Fetched `2026-05-23T01:50:00Z` · Hash `sha256:609536e8365c71a5…`  
  > c. Servicers must offer the Special Forbearance when the borrower indicates they can

---

**Obligation:** [SERVICER] must discuss and offer, if appropriate, the repayment
plan when the borrower indicates they can repay the current loan
payment plus additional amounts to bring the loan current, as
outlined in the VA Home Retention Waterfall.


**Responsible role:** loss_mitigation_specialist

**Cadence:** per_loan

**Provenance (Tier 1 · va-handbook-m26-4):** [VA Servicer Handbook M26-4 Chapter 5 — Loss Mitigation](https://benefits.va.gov/WARMS/M26_4.asp)  
  Fetched `2026-05-23T01:50:00Z` · Hash `sha256:609536e8365c71a5…`  
  > c. Servicers must discuss and offer, if appropriate, the repayment plan when the

---

**Obligation:** Where VA notifies [SERVICER] of a loan modification correction
needed because terms negatively impact the Veteran or the
Government, [SERVICER] must complete all corrections within 60
days of notification by VA. Failure to make corrections within the
required timeframe could result in VA adjusting the claim if the
loan becomes delinquent and subsequently terminates.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per_event

**Provenance (Tier 1 · va-handbook-m26-4):** [VA Servicer Handbook M26-4 Chapter 5 — Loss Mitigation](https://benefits.va.gov/WARMS/M26_4.asp)  
  Fetched `2026-05-23T01:50:00Z` · Hash `sha256:609536e8365c71a5…`  
  > impact the Veteran, or the Government. Servicers must complete all corrections within 60

---

## §25. HUD Handbook 4000.1 III.A.1 — Servicing of FHA-Insured Mortgages (Foundations)

_FHA-specific overlay; foundational servicing duties (Holder/Servicer roles, CFPB/RESPA/TILA + Ginnie Mae, nondiscrimination, subservicing-cost allocation)._

_HUD Handbook 4000.1 Part III.A.1 — Servicing of FHA-Insured Mortgages (Forward)_

**Obligation:** Only FHA-approved Mortgagees may service FHA-insured Mortgages.
[LENDER] (Mortgagee) may service Mortgages it holds or that are
held by other FHA-approved Mortgagees, but every entity in the
servicing chain must hold FHA approval. The approval-required
rule is the foundational gating control for FHA servicing.


**Responsible role:** unassigned (secondary: compliance_officer)

**Cadence:** continuous

**Consequence of non-compliance:** Servicing without FHA approval is a categorical FHA program defect; insurance-eligibility risk.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.1 — Servicing of FHA-Insured Mortgages](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > Only FHA-approved Mortgagees may service FHA-insured Mortgages.

---

**Obligation:** Mortgage Holders shall ensure all FHA-insured Mortgages are
serviced by a Servicer in accordance with FHA requirements and
all applicable laws. The Holder cannot delegate compliance
responsibility — [LENDER] (as Holder) retains affirmative duty
to ensure servicer conformance.


**Responsible role:** unassigned (secondary: vendor_management)

**Cadence:** continuous

**Consequence of non-compliance:** Holder delegation without active oversight is a known FHA QC defect; Holder remains liable for Servicer non-compliance.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.1.a.ii — Standard](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > Mortgage Holders must ensure all FHA-insured Mortgages are serviced by a Servicer in accordance with FHA requirements and all applicable laws.

---

**Obligation:** [LENDER] (Mortgagee) shall comply with all laws, rules, and
requirements applicable to mortgage servicing, including full
compliance with the applicable requirements under the purview
of the Consumer Financial Protection Bureau (CFPB) — including
the Real Estate Settlement Procedures Act (RESPA) and the Truth
in Lending Act (TILA) — and, if applicable, Ginnie Mae's
mortgage-backed securities requirements.


**Responsible role:** unassigned (secondary: unassigned)

**Cadence:** continuous

**Consequence of non-compliance:** Non-compliance with RESPA/TILA/Ginnie Mae MBS servicing rules is both a FHA program defect AND a separate CFPB/Ginnie Mae violation.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.1.a.ii(A) — Laws and Requirements Applicable to Mortgage Servicing](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > Mortgagees must comply with all laws, rules, and requirements applicable to mortgage servicing

---

**Obligation:** Where mortgage contract terms are more stringent or restrictive
than those provided for in applicable law, [LENDER] (Mortgagee)
shall comply with the mortgage contract terms. The contract-
prevails-when-more-stringent rule prevents [LENDER] from
diluting Borrower contractual protections to the legal floor.


**Responsible role:** compliance_officer (secondary: unassigned)

**Cadence:** continuous

**Consequence of non-compliance:** Servicing to the legal floor when the mortgage contract is more protective is a FHA program defect + contract breach.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.1.a.ii(B) — Contract Terms](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > Where mortgage contract terms are more stringent or restrictive than those provided for in applicable law, the Mortgagee must comply with the mortgage contract terms.

---

**Obligation:** The costs associated with subservicing may NOT be imposed on the
Borrower or passed along to HUD in a claim for mortgage
insurance benefits. [LENDER] (Mortgagee) shall absorb
subservicing operational costs as an internal cost of doing
business — neither the Borrower nor the FHA insurance fund
bears the subservicing cost burden.


**Responsible role:** unassigned (secondary: compliance_officer)

**Cadence:** continuous

**Consequence of non-compliance:** Charging Borrowers subservicing costs is a UDAAP/TILA risk; passing to HUD via claim is fraud risk against the FHA insurance fund.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.1.b — Responsibility for Servicing Actions](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > The costs associated with subservicing may not be imposed on the Borrower or passed along to HUD in a claim for mortgage insurance benefits.

---

## §26. HUD Handbook 4000.1 III.A.2 — Default Servicing (Definitions, Late Charges, CRA/IRS Reporting)

_FHA-specific overlay; Default definition (30-day uncorrected), 30-day-month convention for Default timelines, 4% P&I late-charge cap (post-3/14/2016 cases), advance-written-notice requirement._

_HUD Handbook 4000.1 Part III.A.2 — Default Servicing (Forward Mortgages)_

**Obligation:** A Mortgage is in Default when the Borrower fails to make any
payment or perform any other obligation under the Mortgage, and
such failure continues for a period of 30 Days. [LENDER]
(Mortgagee) shall use this Default definition for FHA-loss-
mitigation, claim, and reporting timelines. The 30-day
uncorrected-failure threshold is the canonical FHA Default
trigger.


**Responsible role:** unassigned (secondary: loss_mitigation_specialist)

**Cadence:** continuous

**Consequence of non-compliance:** Mis-classified Default dates cascade into late-fee, loss-mit-timeline, and claim-filing errors; FHA QC defects.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.a.i — Definitions](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > A Mortgage is in Default when the Borrower fails to make any payment or perform any other obligation under the Mortgage, and such failure continues for a period of 30 Days.


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 2 pathways below (within a pathway, all items required):_

**Pathway A: Default-date tracking active — servicing system captures Default-date per III.A.2.a.i definition**

- **Record:** Servicing-system per-loan Default-date field showing day-30-of-uncorrected-failure date populated when applicable, distinct from delinquency-start date.
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review III.A.1_
  - Evidence ID: `csh-ev-hud-iii-a-2-default-date-field`
- **Document:** Written servicing policy implementing the III.A.2.a.i Default definition (30-day uncorrected failure) with sub-rules for application-of-subsequent-payments per Default-date computation.
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review III.A.2_
  - Evidence ID: `csh-ev-hud-iii-a-2-default-detection-policy`

**Pathway B: No Defaults in audit period — full-servicing-period attestation**

- **Record:** Servicing-system attestation that no FHA-insured loan reached the Default threshold (30-day uncorrected failure) during the audit period — the III.A.2 obligation is satisfied vacuously.
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review III.A.0_
  - Evidence ID: `csh-ev-hud-iii-a-2-no-defaults-attestation`

> **How to select your pathway:** Two pathways by loan-portfolio facts: A — at least one loan reached Default during the audit period, requiring the servicing system to correctly identify and track the Default-date per III.A.2.a.i; B — no loans reached Default, requiring only attestation that the tracking would have been done correctly.

<sub>Derivation: `snapshot_extract` · Source: HUD Handbook 4000.1 III.A.2.a.i · Snapshot: `3bf33edadcf6461d` · Fetched: 2026-05-25T14:10:11Z</sub>


---

**Obligation:** [LENDER] (Mortgagee) shall ensure FHA-insured Mortgages in
Delinquency or Default are serviced in accordance with FHA
requirements and applicable laws. The compliance stack spans
FHA Default Servicing rules (this chapter), CFPB Reg X loss-
mit servicing rules, FCRA/FDCPA, state default-servicing law,
and any borrower-protective contract terms.


**Responsible role:** unassigned (secondary: unassigned)

**Cadence:** continuous

**Consequence of non-compliance:** Non-conforming default servicing creates dual FHA-QC + CFPB/state-law exposure.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.a.ii — Standard](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > The Mortgagee must ensure FHA-insured Mortgages in Delinquency or Default are serviced in accordance with FHA requirements and applicable laws.

---

**Obligation:** For the purpose of determining the date of Default and timelines
related to Default, HUD considers all months to have 30 Days.
[LENDER] (Mortgagee) shall apply this 30-day-month convention to
Default-date computation and all downstream loss-mitigation,
foreclosure-initiation, and claim-filing deadlines tied to
Default.


**Responsible role:** loss_mitigation_specialist (secondary: unassigned)

**Cadence:** continuous

**Consequence of non-compliance:** Using calendar-month day counts instead of 30-day months shifts Default-related deadlines and creates FHA-timeline defects.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.a.ii — Standard](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > For the purpose of determining the date of Default and timelines related to Default, HUD considers all months to have 30 Days.

---

**Obligation:** For FHA Mortgages assigned a case number on or after March 14,
2016, [LENDER] (Mortgagee) may assess a Late Charge NOT TO
EXCEED 4 percent of the overdue payment of Principal and
Interest (P&I), in accordance with applicable state and federal
laws. For Mortgages assigned a case number BEFORE March 14,
2016, the Late Charge may be calculated based on overdue PITI
if permitted under Note + state/federal laws.


**Responsible role:** unassigned (secondary: compliance_officer)

**Cadence:** per-late-payment

**Consequence of non-compliance:** Late charges exceeding 4% P&I (post-3/14/2016 cases) are FHA Servicing Guide breaches; state-law overcharge risk.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.c.ii — Late Charges Standard](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > the Mortgagee may assess a Late Charge, not to exceed 4 percent of the overdue payment of P&I and in accordance with applicable state and federal laws.

---

**Obligation:** Before collecting the Late Charge or returning a Mortgage Payment
to the Borrower for failing to pay the Late Charge, [LENDER]
(Mortgagee) shall provide the Borrower with an advance written
notice of the charge. The notice shall include (1) the due date
of the monthly Mortgage Payment, (2) the amount of the regular
monthly Mortgage Payment, (3) the date on which the Late Charge
will be imposed, and (4) the amount of the Late Charge (or full
amount now due).


**Responsible role:** unassigned (secondary: compliance_officer)

**Cadence:** per-late-charge-event

**Consequence of non-compliance:** Collecting late charge without advance written notice is a FHA Servicing Guide breach + state-law/UDAAP risk.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.c.ii(A) — Notifying the Borrower of the Late Charge](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > Before collecting the Late Charge or returning a Mortgage Payment to the Borrower for failing to pay the Late Charge, the Mortgagee must provide the Borrower with an advance written notice of the charge.

---

## §27. HUD Handbook 4000.1 III.A.2 — FHA Loss Mitigation Program (9-Option Waterfall + 90-Day Review)

_FHA-specific overlay; canonical FHA Loss Mit Program. Includes AME pathways for (a) pre-4-installment 90-Day Review (mutually_exclusive_by_facts: eligible vs ineligible) and (b) Servicemember/SCRA protections (parallel_satisfaction: federal SCRA AND FHA-specific overlay both apply)._

_HUD Handbook 4000.1 Part III.A.2 — Loss Mitigation (Forward Mortgages)_

**Obligation:** In implementing HUD's Loss Mitigation Program, [LENDER]
(Mortgagee) shall consider all reasonable means to address
delinquency at the earliest possible time. The early-engagement
duty is the foundation of FHA loss mitigation; delay reduces
workout-success likelihood and increases foreclosure risk.


**Responsible role:** loss_mitigation_specialist (secondary: unassigned)

**Cadence:** continuous

**Consequence of non-compliance:** Late-engagement loss mitigation reduces workout-success and is a FHA Servicing Guide deficiency.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2 — Loss Mitigation Program](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > consider all reasonable means to address delinquency at the earliest possible time

---

**Obligation:** [LENDER] (Mortgagee) shall re-evaluate each Delinquent Mortgage
for Loss Mitigation Options, as required. Re-evaluation is
ongoing, not one-shot — circumstances change and prior workout
ineligibility may resolve; [LENDER] cannot lock a Borrower
into a single point-in-time eligibility determination.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** continuous

**Consequence of non-compliance:** One-shot loss-mit determinations missing re-evaluation are a FHA Servicing Guide breach + CFPB Reg X dual-tracking exposure.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2 — Loss Mitigation Program](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > re-evaluate each Delinquent Mortgage for Loss Mitigation Options, as required.

---

**Obligation:** [LENDER] (Mortgagee) shall consider Owner-Occupant Borrowers AND
Non-Occupant Borrowers for all Loss Mitigation Options.
Investor-occupancy or non-occupancy is NOT a categorical
disqualifier from loss mitigation — both occupancy classes get
the full waterfall review.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-loss-mit-evaluation

**Consequence of non-compliance:** Excluding Non-Occupant Borrowers from waterfall review is a FHA Servicing Guide breach + potential fair-housing / ECOA exposure.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.iii(A)(1)(b) — Occupancy Standard](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > The Mortgagee must consider Owner-Occupant Borrowers and Non-Occupant Borrowers for all Loss Mitigation Options.

---

**Obligation:** [LENDER] (Mortgagee) is required to complete an evaluation of a
Defaulted Mortgage for appropriate Loss Mitigation Options
BEFORE four monthly installments are due and unpaid AND send a
written Notice to Borrower with the determination of
eligibility. The 90-Day Review pre-4-installment bright-line
caps the loss-mit-evaluation-completion deadline for FHA loans
in default.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-defaulted-loan

**Consequence of non-compliance:** Missing the pre-4-installment evaluation or written notice is a 90-Day Review breach; FHA Servicing Guide defect + potential dual-tracking risk under Reg X.

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.iii(B) — 90-Day Review](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > A Mortgagee is required to complete an evaluation of a Defaulted Mortgage for appropriate Loss Mitigation Options before four monthly installments are due and unpaid and send a written Notice to Borrower with the determi…


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 2 pathways below (within a pathway, all items required):_

**Pathway A: Borrower eligible: pre-4-installment evaluation completed + Loss Mit Option offered in written Notice**

- **Timestamp:** System-of-record Default-date timestamp for the FHA-insured Mortgage (30-day uncorrected-failure per III.A.2.a.i).
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review Q5_
  - Evidence ID: `csh-ev-hud-iii-a-3-90day-default-date-timestamp`
- **Record:** Internal Loss Mit evaluation record dated BEFORE the 4th monthly installment came due unpaid, documenting [LENDER]'s review of the Borrower against the FHA 9-option waterfall (Repayment Plan / Forbearance / Partial Claim / Loan Mod / Combination / Payment Supplement / OWL / Pre-Foreclosure Sale / DIL).
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review Q6_
  - Evidence ID: `csh-ev-hud-iii-a-3-90day-eval-completed-pre-4th-installment`
- **Document:** Copy of written Notice to Borrower with eligibility determination AND specific Loss Mit Option(s) offered, mailed/delivered pre-4-installment-default.
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review Q7_
  - Evidence ID: `csh-ev-hud-iii-a-3-90day-eligibility-notice-with-offer`

**Pathway B: Borrower ineligible: pre-4-installment evaluation completed + ineligibility-determination written Notice**

- **Timestamp:** System-of-record Default-date timestamp for the FHA-insured Mortgage.
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review Q5_
  - Evidence ID: `csh-ev-hud-iii-a-3-90day-default-date-timestamp-ineligible`
- **Record:** Internal Loss Mit evaluation record documenting ineligibility per III.A.2.iii(A) (e.g., other FHA-insured property held / prior FHA claim in last 3 years / debarment-suspension-LDP / unresolved delinquent Federal Debt for Partial Claim or modification options).
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review Q6_
  - Evidence ID: `csh-ev-hud-iii-a-3-90day-eval-ineligible-rationale`
- **Document:** Copy of written Notice to Borrower stating ineligibility determination with specific basis cited, mailed/delivered pre-4-installment-default.
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review Q7_
  - Evidence ID: `csh-ev-hud-iii-a-3-90day-ineligibility-notice`

> **How to select your pathway:** Two pathways selected by facts: pathway A (eligible) when the Borrower passes the III.A.2.iii(A) eligibility criteria; pathway B (ineligible) when the Borrower fails one or more eligibility criteria. Both pathways share the bright-line pre-4-installment evaluation deadline and written-notice content requirement; pathway B's notice differs only by ineligibility-rationale content vs eligible's option-offer content.

<sub>Derivation: `snapshot_extract` · Source: HUD Handbook 4000.1 III.A.2.iii(B) · Snapshot: `3bf33edadcf6461d` · Fetched: 2026-05-25T14:10:11Z</sub>


---

**Obligation:** [LENDER] (Mortgagee) shall offer eligible servicemember Borrowers
mortgage protections under the SCRA and Servicing FHA-Insured
Mortgages for Servicemember-Borrowers. The SCRA + FHA-
servicemember dual-rule layering provides comprehensive
protection during military service.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-servicemember-borrower

**Consequence of non-compliance:** Missing SCRA protections expose [LENDER] to federal SCRA enforcement + FHA Servicing Guide breach + DOJ exposure (SCRA private right of action).

**Provenance (Tier 1 · hud-handbook-4000-1):** [HUD Handbook 4000.1 III.A.2.ii — Servicemember Status](https://www.hud.gov/sites/dfiles/OCHCO/documents/40001HSGH.pdf)  
  Fetched `2026-05-25T14:10:11Z` · Hash `sha256:e1c2dc1c75ddb0ee…`  
  > The Mortgagee must offer eligible servicemember Borrowers mortgage protections under the SCRA and Servicing FHA-Insured Mortgages for Servicemember-Borrowers.


### What an auditor will ask to see

_Compliance requires **ALL 2** pathways below (each pathway's items all required):_

**Pathway A: Federal SCRA protections layer: 50 USC §3937 6% interest rate cap, §3953 foreclosure stay, §3955 default judgment protections**

- **Record:** DMDC (Defense Manpower Data Center) Servicemember Civil Relief Act verification result OR Borrower-supplied military orders confirming active-duty status during the relevant period.
  - Retention rule: `scra-50usc-3937`
  - Examiner topic pointer (operator-verify): _DOJ SCRA Compliance Manual §III.B_
  - Evidence ID: `csh-ev-hud-iii-a-3-scra-eligibility-check`
- **Record:** Account-level evidence that the 6% pre-service interest rate cap was applied during eligible active-duty period (per 50 USC §3937), with effective-date triggers documented.
  - Retention rule: `scra-50usc-3937`
  - Examiner topic pointer (operator-verify): _DOJ SCRA Compliance Manual §III.C_
  - Evidence ID: `csh-ev-hud-iii-a-3-scra-6pct-interest-application`
- **Record:** If foreclosure was initiated, evidence of 50 USC §3953 foreclosure-stay compliance: stay imposed during active-duty period plus 12-month post-service window (or applicable extension).
  - Retention rule: `scra-50usc-3953`
  - Examiner topic pointer (operator-verify): _DOJ SCRA Compliance Manual §III.D_
  - Evidence ID: `csh-ev-hud-iii-a-3-scra-foreclosure-stay-record`

**Pathway B: FHA-specific servicemember overlay: Servicing FHA-Insured Mortgages for Servicemember-Borrowers (HUD 4000.1 III.A.2.ii)**

- **Document:** [LENDER]'s written policy explicitly applying the FHA-Servicemember overlay rules (special hardship review, military-PCS-relocation protections, additional loss-mit consideration weight).
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review Q12_
  - Evidence ID: `csh-ev-hud-iii-a-3-fha-servicemember-policy`
- **Record:** For each eligible servicemember default, the loss-mit-evaluation record showing the FHA-Servicemember-overlay was considered (in addition to standard III.A.3 evaluation), with offer specifically referencing servicemember status if applicable.
  - Retention rule: `hud-4000-1-iii-a-1`
  - Examiner topic pointer (operator-verify): _HUD OIG Servicer Review Q13_
  - Evidence ID: `csh-ev-hud-iii-a-3-fha-servicemember-loss-mit-offer`

> **How to select your pathway:** Pathway A (Federal SCRA) AND Pathway B (FHA-Servicemember overlay) BOTH apply simultaneously for any eligible servicemember Borrower on an FHA-insured Mortgage. SCRA protections are federally mandated regardless of investor; FHA overlay is required by HUD 4000.1 III.A.2.ii in addition to (not instead of) the SCRA. Satisfying only one pathway leaves the other obligation unsatisfied — this is parallel-satisfaction, not lender-selectable.

<sub>Derivation: `snapshot_extract` · Source: HUD Handbook 4000.1 III.A.2.ii · Snapshot: `3bf33edadcf6461d` · Fetched: 2026-05-25T14:10:11Z</sub>


---

## §28. FNMA Servicing Guide D2-2 — QRPC + Outbound Contact + Payment Reminder

_Fannie Mae overlay; replaces the prior D2-2 section. Includes AME pathways for outbound-contact-day-36-every-7-days (mutually_exclusive_by_facts: 5 stopping conditions per D2-2-02: QRPC+workout-adherence, delinquency resolved, complete BRP received, promise-to-pay ≤30 days, QRPC + no-interest)._

_FNMA Servicing Guide D2-2 — Requirements for Contacting a Borrower_

**Obligation:** [LENDER] (servicer) shall make every attempt to achieve Quality
Right Party Contact (QRPC) with the borrower, co-borrower, or
trusted advisor. The purpose of QRPC is to determine the
delinquency reason, occupancy status, ability to repay, educate
the borrower on workout options, and obtain a commitment to
resolve the delinquency.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-delinquency

**Consequence of non-compliance:** Failure to attempt QRPC is a FNMA Servicing Guide breach; reduces workout-option uptake and increases foreclosure risk.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-01 — Achieving Quality Right Party Contact](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must make every attempt to achieve QRPC.

---

**Obligation:** [LENDER] (servicer) shall begin outbound contact attempts no
later than the 36th day of delinquency and shall continue
outbound contact attempts every 7 days until QRPC is achieved
(and/or borrower adheres to a workout agreement), the delinquency
is resolved, a complete Borrower Response Package (BRP) is
received, the borrower has provided a promise to pay (≤30 days),
or QRPC is achieved and the borrower indicates no interest in a
workout option. [LENDER] is authorized but not required to begin
earlier than day 36 (e.g., using behavioral models).


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-delinquency

**Consequence of non-compliance:** Failure to attempt timely outbound contact is a FNMA Servicing Guide breach + state-law early-default-contact exposure.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must begin outbound contact attempts no later than the 36th day of delinquency and must continue every 7 days


### What an auditor will ask to see

_Compliance via **ANY ONE** of the 5 pathways below (within a pathway, all items required):_

**Pathway A: Stopping condition A: QRPC achieved AND borrower adheres to workout option agreement**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp`
- **Record:** Servicing-system QRPC-achievement record per D2-2-01 (delinquency reason + occupancy + capacity + workout-options-educated + commitment) timestamped during the outbound-contact campaign.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.b_
  - Evidence ID: `csh-ev-fnma-d2-2-qrpc-achievement-record`
- **Record:** Workout-option-agreement record + payment history showing borrower performance against the agreed terms (e.g., TPP payments timely).
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-3.a_
  - Evidence ID: `csh-ev-fnma-d2-2-workout-adherence-record`

**Pathway B: Stopping condition B: delinquency resolved**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp-resolved`
- **Record:** Payment record showing all delinquent amounts paid current; account-status change to performing.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.c_
  - Evidence ID: `csh-ev-fnma-d2-2-resolution-payment-record`

**Pathway C: Stopping condition C: complete Borrower Response Package (BRP) received per D2-2-05**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp-brp`
- **Record:** BRP-completeness record per D2-2-05 (all required documents received), with completeness-determination timestamp triggering the contact-attempt stop.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.d_
  - Evidence ID: `csh-ev-fnma-d2-2-complete-brp-receipt`

**Pathway D: Stopping condition D: borrower provided a promise to pay (≤30 days) the delinquent amount**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp-promise`
- **Record:** Servicing-system promise-to-pay record with (1) promised amount, (2) promised pay date NOT exceeding 30 days from promise date, (3) recorded source (borrower-confirmed).
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.e_
  - Evidence ID: `csh-ev-fnma-d2-2-promise-to-pay-record`

**Pathway E: Stopping condition E: QRPC achieved AND borrower indicates no interest in any workout option**

- **Timestamp:** System-of-record timestamp showing first outbound contact attempt on or before day 36 of delinquency.
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.a_
  - Evidence ID: `csh-ev-fnma-d2-2-day-36-first-attempt-timestamp-no-interest`
- **Record:** QRPC-achievement record per D2-2-01 PLUS explicit borrower no-interest declaration captured in servicing notes (with borrower-confirmation source attribution).
  - Retention rule: `fnma-svc-a4-1-01`
  - Examiner topic pointer (operator-verify): _FNMA Servicer Performance Review §D2-2.f_
  - Evidence ID: `csh-ev-fnma-d2-2-qrpc-no-interest-record`

> **How to select your pathway:** Five mutually-exclusive stopping conditions per FNMA D2-2-02. The outbound-contact-attempt obligation is fully satisfied when ANY ONE of the five conditions is met (after which continued outbound contact is no longer required by D2-2-02, though the 60-day judicial / 30-day non-judicial pre-foreclosure-sale stop rule of D2-2-02 still applies separately). Selection by facts: the servicing system records which stopping condition triggered on a given delinquency cycle. Multiple pathways may apply to the same loan over time across different delinquency cycles; each cycle gets exactly one terminal pathway.

<sub>Derivation: `snapshot_extract` · Source: FNMA Servicing Guide D2-2-02 · Snapshot: `f662f911b3ddaf1d` · Fetched: 2026-05-25T14:09:40Z</sub>


---

**Obligation:** Unless required by applicable law to continue outbound contact
attempts to the delinquent borrower, [LENDER] (servicer) shall
discontinue all outbound contact attempts: (a) 60 days prior to
the judicial foreclosure sale date, or (b) 30 days prior to a
non-judicial foreclosure sale date. The pre-sale outbound-stop
rule prevents harassment-pattern claims while foreclosure
proceedings finalize.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-foreclosure

**Consequence of non-compliance:** Continued outbound contact during the no-contact pre-sale window can support harassment / unfair-practices claims.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > the servicer must discontinue all outbound contact attempts

---

**Obligation:** When [LENDER] (servicer) communicates with the borrower during
outbound contact attempts, [LENDER] shall emphasize the
importance of making payments on or prior to their due dates.
The messaging requirement reinforces FNMA's preference for
payment-current resolution before workout-option escalation.


**Responsible role:** loss_mitigation_specialist (secondary: unassigned)

**Cadence:** per-outbound-attempt

**Consequence of non-compliance:** Off-message outbound contact scripts undercut FNMA payment-current preference and weaken servicing-performance metrics.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-02 — Outbound Contact Attempt Requirements](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > the servicer must emphasize the importance of making payments on or prior to their due dates.

---

**Obligation:** [LENDER] (servicer) shall send a payment reminder notice to the
borrower no later than the 20th day of the month if the payment
has not been received. Exceptions apply when (a) the mortgage
loan is a second lien mortgage loan (see D2-2-09) or (b) the
borrower is subject to an active forbearance plan (without regard
to whether the plan provides for reduced or suspended payments).
The notice must address the borrower by name, state a desire to
work with the borrower to preserve homeownership, state the
amount of late charges due (if applicable), and explain late-
payment-credit-reporting consequences.


**Responsible role:** unassigned (secondary: loss_mitigation_specialist)

**Cadence:** per-late-payment-month

**Consequence of non-compliance:** Missing payment-reminder notice is a FNMA Servicing Guide breach and reduces borrower opportunity to cure before later-stage collection.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-2-03 — Sending a Payment Reminder Notice](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must send a payment reminder notice to the borrower no later than the 20th day of the month if the payment has not been received

---

## §29. FNMA Servicing Guide D2-3.1 — Workout Conditions + Group Home Servicing

_Fannie Mae overlay; MBS-pool-modification conditions (no-modify-in-pool, 4-consecutive-month delinquency precondition, Trial Period Plan precondition, modification-not-effective-while-in-pool) plus group-home foreclosure-prevention duty._

_FNMA Servicing Guide D2-3.1 — Determining the Appropriate Workout Option / Conditions for MBS Pool Modification / Group Home Servicing_

**Obligation:** [LENDER] (servicer) shall NOT modify a mortgage loan while it is
in an MBS pool (including PFP mortgage loans). Performing MBS
mortgage loans are ineligible for purchase from the related MBS
pool for the purpose of modifying the mortgage loan term,
interest rate, UPB, or other major characteristics. The MBS-
structural constraint prevents pool-level investor interest
dilution via loan-level modifications.


**Responsible role:** loss_mitigation_specialist (secondary: unassigned)

**Cadence:** per-mbs-modification

**Consequence of non-compliance:** Modification of an in-pool MBS mortgage loan is a foundational MBS-structural breach; may trigger pool-level investor claims and FNMA enforcement.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must not modify a mortgage loan while it is in an MBS pool

---

**Obligation:** [LENDER] (servicer) may remove a special-servicing-option
mortgage loan from its MBS pool for modification only if the
mortgage loan has been in a continuous state of delinquency for
four consecutive monthly payment due dates (or at least eight
consecutive payment due dates in the case of a biweekly mortgage
loan) without a full cure of the delinquency during that period.
The bright-line delinquency-duration threshold prevents premature
pool removal.


**Responsible role:** unassigned (secondary: loss_mitigation_specialist)

**Cadence:** per-mbs-removal

**Consequence of non-compliance:** Pool removal without the 4-consecutive-delinquency precondition is a FNMA Servicing Guide breach.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > if a special servicing option mortgage loan has been in a continuous state of delinquency for four consecutive monthly payment due dates

---

**Obligation:** [LENDER] (servicer) shall ensure that the mortgage loan
modification is NOT implemented if the required Trial Period
Plan payments are not made in accordance with the applicable
mortgage loan modification workout option, because the
preconditions to make the modification effective have not been
satisfied. The Trial Period Plan payment record is the operative
gate for permanent modification.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-modification

**Consequence of non-compliance:** Implementing a modification on a borrower who did not complete Trial Period Plan payments is a FNMA Servicing Guide breach.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must ensure that the mortgage loan modification is not implemented if the required Trial Period Plan payments are not made

---

**Obligation:** [LENDER] (servicer) shall ensure that a mortgage loan
modification does NOT become effective while it remains in an
MBS pool. The modification agreement must be executed after the
mortgage loan has been removed from any MBS pool and reclassified
as a Fannie Mae portfolio mortgage loan, and must reflect the
actual date of [LENDER]'s execution.


**Responsible role:** unassigned (secondary: loss_mitigation_specialist)

**Cadence:** per-modification

**Consequence of non-compliance:** Effecting a modification while loan is still in an MBS pool is a foundational MBS-structural breach.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-3.1-02 — Conditions of MBS Mortgage Loan Modification](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must ensure that a mortgage loan modification does not become effective while it remains in an MBS pool.

---

**Obligation:** For mortgage loans where the property securing the mortgage loan
serves as a group home, [LENDER] (servicer) shall work with the
borrower AND the funding agency to resolve a serious delinquency.
[LENDER] shall devote additional resources to foreclosure
prevention efforts when the group home is still occupied by
disabled tenants and, if appropriate, delay the initiation of
foreclosure. The group-home rule recognizes the vulnerable-
population housing-protection context.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-group-home-delinquency

**Consequence of non-compliance:** Standard-track foreclosure on a group home with disabled occupants creates fair-housing and FNMA-program-specific exposure.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide D2-3.1-03 — Working with a Borrower that has a Group Home Mortgage Loan](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > must work with the borrower and the funding agency to resolve a serious delinquency

---

## §30. FNMA Servicing Guide A4-1-01 — Servicer Staffing/Training/QC Foundations

_Fannie Mae overlay; underlies loss-mit operational capability (sufficient staffing + training, continuity-of-contact for delinquent borrowers, written policies, FHFA SCP screening, QC procedures)._

_FNMA Servicing Guide A4-1-01 — Staffing, Training, Procedures, and Quality Control Requirements_

**Obligation:** [LENDER] (servicer) shall have sufficient staffing levels and
properly trained staff (INCLUDING third-party providers of its
outsourced servicing activities) to: (1) carry out all aspects of
its servicing duties in accordance with the timing requirements of
the Servicing Guide; (2) maintain acceptable performance standards;
and (3) provide borrowers with assistance when it is requested.


**Responsible role:** unassigned (secondary: vendor_management)

**Cadence:** continuous

**Consequence of non-compliance:** Servicing-performance failures expose [LENDER] to FNMA enforcement and reps-and-warranties claims.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide A4-1-01 — Staffing Requirements](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > levels and properly trained staff (including third-party providers of its outsourced servicing activities) to

---

**Obligation:** [LENDER] (servicer) shall design and implement a training program
that includes: (1) the fundamentals of all Fannie Mae workout
options programs; (2) familiarity with F-2-10 (Fannie Mae's Workout
Hierarchy); (3) annual training and as-training-needs-are-identified
through quality assurance reviews; (4) continual training on policy
changes communicated through Announcements, Lender Letters, and
other Fannie Mae correspondence; and (5) training on compliance
with applicable laws and regulations. Foreclosure and bankruptcy
staff must additionally be knowledgeable about Fannie Mae's workout
options.


**Responsible role:** unassigned (secondary: compliance_officer)

**Cadence:** annual-plus-continuous

**Consequence of non-compliance:** Untrained staff committing servicing errors expose [LENDER] to FNMA enforcement and reps-and-warranties claims.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide A4-1-01 — Training Requirements](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must design and implement a training program that includes:

---

**Obligation:** [LENDER] (servicer) shall have fully documented written policies
and/or procedures that address all aspects of mortgage servicing
to ensure its staff, and any outsourcing firms and third-party
vendors used by [LENDER], consistently comply with Fannie Mae's
requirements. Required topics include (but are not limited to):
oversight of outsourcing/third-party vendors, FHFA Suspended
Counterparty Program list screening, controls for automated
payment direct-debits, and other servicing-operations controls
listed in the A4-1-01 written-policies table.


**Responsible role:** compliance_officer (secondary: vendor_management)

**Cadence:** continuous

**Consequence of non-compliance:** Lack of written policies is a standalone FNMA Servicing Guide breach; surfaces in QC reviews and audits.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide A4-1-01 — Establishing Written Policies or Procedures](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > The servicer must have fully documented written policies and/or procedures that address all aspects of

---

**Obligation:** [LENDER] (servicer) shall ensure its staff dedicated to delinquent
borrowers provides continuity of contact with the borrower AND
allows the borrower to contact one individual or a dedicated team
of individuals in [LENDER]'s organization to obtain accurate
information on the various workout options available. When using a
team approach, [LENDER] shall provide the borrower with the ability
to request and speak to, or leave a message for, a specific person
from the assigned team.


**Responsible role:** loss_mitigation_specialist (secondary: compliance_officer)

**Cadence:** per-delinquent-loan

**Consequence of non-compliance:** Continuity-of-contact gaps duplicate Reg X §1024.40 exposure plus FNMA reps-and-warranties claims.

**Provenance (Tier 1 · fnma-guide):** [FNMA Servicing Guide A4-1-01 — Staffing Requirements (Delinquent Borrowers)](https://singlefamily.fanniemae.com/media/document/pdf/servicing-guide)  
  Fetched `2026-05-25T14:09:40Z` · Hash `sha256:89df66c43baad07f…`  
  > provides continuity of contact with the borrower, and

---

## Sign-off and attestation

By signing below, I attest that **[LENDER]** performs the obligations enumerated above in accordance with the cited authorities and that any deviations are documented in the lender's compliance review log.

**Signed:** _________________________  
**Name:** _________________________  
**Title (e.g., Chief Compliance Officer):** _________________________  
**Date:** _________________________  

## Appendix A — Anticipated Examiner Questions (optional)

_This appendix is optional self-audit material — not part of the operative P&P. It restates each obligation above as the form a federal or state examiner is most likely to use during a supervisory exam. Delete this entire appendix if you do not want it carried with the published P&P; the rest of the document remains complete on its own._

### §1. Early Intervention with Delinquent Borrowers

**§1.1** — Can the lender demonstrate that [LENDER], as servicer, shall establish or make good faith efforts to
establish live contact with a delinquent borrower no later than the 36th
day of delinquency and again no later than 36 days after each subsequent
payment due date so long as the borrower remains delinquent. Promptly
after establishing live contact, [LENDER] shall inform the borrower
about the availability of loss mitigation options, if appropriate.?

**§1.2** — Can the lender demonstrate that [LENDER], as servicer, shall provide to a delinquent borrower a written
early-intervention notice containing the §1024.39(b)(2) content no later
than the 45th day of delinquency and again no later than 45 days after
each subsequent payment due date so long as the borrower remains
delinquent — subject to the once-per-180-day frequency cap and the
follow-on timing rules in §1024.39(b)(1).?

**§1.3** — Can the lender demonstrate that [LENDER]'s §1024.39(b) written notice shall include: a statement
encouraging the borrower to contact the servicer; the §1024.40(a)
continuity-of-contact telephone number and the servicer's mailing
address; if applicable, brief examples of loss mitigation options;
if applicable, application instructions or how to obtain more
information about loss mit options; and the Bureau or HUD homeownership-
counselor website plus the HUD toll-free counselor phone number.?

**§1.4** — Can the lender demonstrate that while any borrower on a mortgage loan is a debtor in bankruptcy under
title 11 of the United States Code, [LENDER]: is exempt from the (a)
live-contact requirement; is exempt from the (b) written-notice
requirement if no loss mitigation option is available, or if any
borrower has provided an FDCPA §805(c) cease-communication notice;
and otherwise must comply with (b) as modified by §1024.39(c)(1)(iii).?

**§1.5** — Can the lender demonstrate that [LENDER] that was exempt from (a) and (b) under (c)(1) must resume
compliance with (a) and (b) after the next payment due date following
the earliest of: bankruptcy case dismissal, case closure, or borrower
reaffirmation of personal liability — subject to the §1024.39(c)(2)(ii)
exception for loans where the borrower discharged personal liability
under 11 U.S.C. §§727, 1141, 1228, or 1328.?

**§1.6** — Can the lender demonstrate that when any borrower has provided an FDCPA §805(c) (15 U.S.C. §1692c(c))
cease-communication notice on a mortgage loan, [LENDER] (if subject to
the FDCPA on that loan): is exempt from (a) live-contact; is exempt
from (b) written-notice if no loss-mit option is available or while
any borrower is in bankruptcy; otherwise must comply with (b) as
modified by §1024.39(d)(3) — including the foreclosure-intent statement
in the notice, the prohibition on payment requests, and the once-per-
180-day frequency cap with the 190-day re-issue rule.?

### §2. Continuity of Contact

**§2.1** — Can the lender demonstrate that [LENDER], as servicer, shall maintain policies and procedures that are
reasonably designed to achieve the objectives in §1024.40(a)(1)–(3):
assign personnel to a delinquent borrower by the time the §1024.39(b)
written notice is provided but in any event not later than the 45th
day of delinquency; make those personnel available by telephone; and
ensure a timely live response when the borrower contacts the assigned
personnel.?

**§2.2** — Can the lender demonstrate that [LENDER]'s continuity-of-contact policies must ensure assigned personnel
are assigned to a delinquent borrower by the time the §1024.39(b)
written notice is provided, and in any event not later than the 45th
day of the borrower's delinquency.?

**§2.3** — Can the lender demonstrate that [LENDER]'s continuity-of-contact policies must make the assigned
personnel available to a delinquent borrower by telephone to respond
to inquiries and, as applicable, assist with available loss mit options
until the borrower has made, without incurring a late charge, two
consecutive mortgage payments under a permanent loss mit agreement.?

**§2.4** — Can the lender demonstrate that [LENDER]'s continuity-of-contact personnel must be able to provide the
borrower with accurate information about loss-mit options from the
owner/assignee, actions the borrower must take to be evaluated (including
to submit a complete §1024.41 application and to appeal denials of trial
or permanent modifications), status of the borrower's loss-mit
application, circumstances under which a foreclosure referral may be
made, and applicable loss-mit deadlines (owner/assignee or §1024.41).?

**§2.5** — Can the lender demonstrate that [LENDER]'s continuity-of-contact personnel must be able to retrieve, in
a timely manner, a complete record of the borrower's payment history and
all written information the borrower has provided to the servicer and to
prior servicers in connection with a loss mitigation application.?

### §3. Loss Mitigation Procedures

**§3.1** — Can the lender demonstrate that if [LENDER], as servicer, receives a loss mitigation application 45 days
or more before a foreclosure sale, [LENDER] shall promptly review the
application for completeness and notify the borrower in writing within
5 days (excluding legal public holidays, Saturdays, and Sundays) that
[LENDER] acknowledges receipt and has determined the application is
either complete or incomplete; if incomplete, the notice must state
the additional documents and information required, the applicable
submission date, and a statement about contacting servicers of other
mortgage loans on the same property.?

**§3.2** — Can the lender demonstrate that except as provided in §1024.41(c)(4)(ii), if [LENDER] receives a complete
loss mitigation application more than 37 days before a foreclosure sale,
then within 30 days of receipt [LENDER] shall evaluate the borrower for
all loss mitigation options available and provide the borrower with a
written notice stating the servicer's determination, the borrower's
accept/reject deadline under §1024.41(e), and (if applicable) the
borrower's §1024.41(h) appeal rights for loan-modification denials.?

**§3.3** — Can the lender demonstrate that if [LENDER] requires documents or information not in the borrower's
control to determine which loss mitigation options it will offer,
[LENDER] must exercise reasonable diligence in obtaining such documents
or information. [LENDER] must not deny a complete loss-mit application
solely because [LENDER] lacks third-party information, subject to the
(c)(4)(ii)(A)(2) exception; if the 30-day determination is delayed
due to missing third-party info, [LENDER] must send the (c)(4)(ii)(B)
interim notice describing the missing items and the status of the
request.?

**§3.4** — Can the lender demonstrate that if a complete loss mitigation application is denied for any trial or
permanent loan modification option, [LENDER] shall state in the
§1024.41(c)(1)(ii) notice the specific reason or reasons for the
denial for each such option and, if applicable, that the borrower
was not evaluated on other criteria.?

**§3.5** — Can the lender demonstrate that [LENDER] shall not make the first notice or filing required by
applicable law for any judicial or non-judicial foreclosure process
unless the borrower's mortgage loan obligation is more than 120 days
delinquent, the foreclosure is based on a due-on-sale clause violation,
or [LENDER] is joining the foreclosure action of a superior or
subordinate lienholder.?

**§3.6** — Can the lender demonstrate that if a borrower submits a complete loss mitigation application after
[LENDER] has made the first foreclosure notice/filing but more than 37
days before a foreclosure sale, [LENDER] shall not move for foreclosure
judgment or order of sale, or conduct a foreclosure sale, unless: (1)
[LENDER] has sent the §1024.41(c)(1)(ii) ineligibility notice and the
appeal process is inapplicable / not requested in time / denied; (2)
the borrower rejects all offered options; or (3) the borrower fails
to perform under an agreement on a loss mitigation option.?

**§3.7** — Can the lender demonstrate that if [LENDER] receives a complete loss mitigation application 90 days or
more before a foreclosure sale, or during the §1024.41(f) pre-
foreclosure review period, [LENDER] shall permit a borrower to appeal
[LENDER]'s denial of any trial or permanent loan-modification option,
within 14 days after [LENDER] provides the §1024.41(c)(1)(ii) offer
notice; the appeal must be reviewed by different personnel than those
who evaluated the original application; and [LENDER] shall provide
a written appeal-determination notice within 30 days under (h)(4).?

### §4. General Servicing Policies, Procedures, and Requirements

**§4.1** — Can the lender demonstrate that [LENDER], as a mortgage servicer, shall maintain policies and procedures
that are reasonably designed to achieve the objectives set forth in
paragraph (b) of §1024.38.?

**§4.2** — Can the lender demonstrate that [LENDER]'s servicing policies and procedures must be reasonably designed
to ensure the servicer can provide accurate and timely disclosures,
investigate and respond to borrower complaints, provide borrowers with
accurate information in response to requests, provide owners/assignees
with accurate information about loans they own, submit accurate foreclosure
filings, and handle successor-in-interest communications and confirmations.?

**§4.3** — Can the lender demonstrate that [LENDER]'s policies and procedures must be reasonably designed to ensure
accurate information on available loss-mit options, identification of all
options the borrower may be eligible for, prompt staff access to all
documents in the borrower's loss-mit application, identification of
required documents (with the §1024.41(b)(2)(i)(B) notice), proper
evaluation under §1024.41, and prompt obtaining of third-party documents
not in the borrower's control per §1024.41(c)(4).?

**§4.4** — Can the lender demonstrate that [LENDER]'s policies and procedures must be reasonably designed to ensure
servicer personnel can access current documents reflecting service-provider
actions, conduct periodic service-provider reviews including compliance
audits, and share current loss-mit-evaluation and foreclosure status
information among the right servicer personnel and service-provider
personnel (including foreclosure-counsel).?

**§4.5** — Can the lender demonstrate that [LENDER]'s policies and procedures must be reasonably designed to ensure,
as transferor, the timely transfer of all loan information and documents
to the transferee in a form and manner that ensures accuracy and lets the
transferee comply with its obligations; and, as transferee, the
identification and retrieval of documents that the transferor may not
have transferred.?

**§4.6** — Can the lender demonstrate that [LENDER] shall retain records that document actions taken with respect to
a borrower's mortgage loan account until one year after the date the
mortgage loan is discharged or servicing is transferred by [LENDER] to a
transferee servicer.?

**§4.7** — Can the lender demonstrate that [LENDER] shall maintain, on each mortgage loan account serviced, the
documents and data enumerated in §1024.38(c)(2)(i)–(v) (transaction
schedule including escrow and suspense; security instrument copy; servicer
personnel notes of communications; electronic-systems data-field reports;
and borrower-supplied documents under §1024.35 / §1024.41) in a manner
that facilitates compiling them into a servicing file within five days.?

### §5. FHA Permanent Loss-Mit Framework (HUD ML 2025-12)

**§5.1** — Can the lender demonstrate that before offering any FHA Loss Mitigation Option, [LENDER] must verify
that the Borrowers are eligible to participate in HUD's Loss Mitigation
Program. To be eligible, the Borrower may not own other FHA-insured
real estate (except under the stated exceptions); has not been the
Borrower (except through inheritance or as co-signer only) on prior
loans on which an FHA claim has been paid within the past three years;
must not be debarred, suspended, or subject to a HUD LDP for the
relevant home-retention options; and may not have unresolved delinquent
Federal Debt for Partial Claim / Combination / Payment Supplement
options.?

**§5.2** — Can the lender demonstrate that for each FHA-insured forward Mortgage in Default, [LENDER] must complete
an evaluation of the Defaulted Mortgage for appropriate Loss Mitigation
Options before four monthly installments are due and unpaid, and send
a written Notice to Borrower with the determination of eligibility.?

**§5.3** — Can the lender demonstrate that for each Borrower who successfully completes a Trial Payment Plan (TPP)
on a Permanent Home Retention Option (Standalone Partial Claim,
Standalone Loan Modification, Combination Loan Modification and Partial
Claim, or Payment Supplement), [LENDER] must send the Permanent Home
Retention documents to the Borrower within 15 Days from the successful
completion of the TPP.?

### §6. FHA CWCOT Sales-Period Framework (HUD ML 2025-13)

**§6.1** — Can the lender demonstrate that where [LENDER] (as Mortgagee) utilizes CWCOT post-foreclosure sales
efforts on FHA-insured Mortgages with post-foreclosure sales scheduled
to occur on or after May 30, 2025, [LENDER] must list the Property for
sale to all third parties for a 60-Day period.?

**§6.2** — Can the lender demonstrate that where [LENDER] conducted a CWCOT post-foreclosure sales effort and the
Property did not sell through the post-foreclosure sales efforts,
[LENDER] must convey the Property to HUD within 30 Days of the end of
the post-foreclosure sales period.?

**§6.3** — Can the lender demonstrate that for every Claim Type 06 (CWCOT) claim, [LENDER] must submit Parts A and
B of form HUD-27011 to HUD simultaneously no later than 30 Days after
the earliest of (a) the date [LENDER] acquired good and marketable
title; (b) the date a third party acquired good and marketable title;
(c) the date the Borrower or other party redeemed the Property; (d) the
date the redemption period expires; or (e) such other date as required
by the FHA Commissioner.?

### §7. SCRA Foreclosure Stay (Servicemember Protections)

**§7.1** — Can the lender demonstrate that §3953 applies only to obligations on real or personal property owned by
a servicemember that (1) originated before the servicemember's military
service and for which the servicemember remains obligated, and (2) are
secured by a mortgage, trust deed, or other security in the nature of a
mortgage. [LENDER]'s SCRA workflow must identify pre-service origination
and continuing-obligation status before applying §3953 protections.?

**§7.2** — Can the lender demonstrate that in an action filed during, or within one year after, a servicemember's
period of military service to enforce a §3953(a) obligation, the court
may, after a hearing and on its own motion, and SHALL upon application
by a servicemember whose ability to comply is materially affected by
military service, either (1) stay the proceedings for a period as
justice and equity require, or (2) adjust the obligation to preserve
the interests of all parties. [LENDER]'s foreclosure workflow must
anticipate the mandatory court stay/adjustment on servicemember motion
when material effect on the ability to pay is shown.?

**§7.3** — Can the lender demonstrate that a sale, foreclosure, or seizure of property for breach of a §3953(a)
obligation shall not be valid if made during, or within one year after,
the servicemember's period of military service, except (1) upon a
court order granted before such sale, foreclosure, or seizure with a
return made and approved by the court, or (2) pursuant to a §3918
waiver agreement. For [LENDER], this is the load-bearing SCRA
constraint: non-judicial foreclosure on a covered servicemember within
the protected window is per se invalid absent a court order or §3918
agreement.?

**§7.4** — Can the lender demonstrate that a person who knowingly makes or causes to be made a sale, foreclosure,
or seizure of property prohibited by §3953(c), or who knowingly
attempts to do so, shall be fined under title 18, or imprisoned for
not more than one year, or both. Personnel involved in [LENDER]'s
foreclosure-referral pipeline (loss mit, foreclosure counsel, REO,
title) must be trained on the §3953(c) prohibition and the
knowing-violation criminal exposure under §3953(d).?

### §8. Bankruptcy Automatic Stay

**§8.1** — Can the lender demonstrate that upon the filing of a bankruptcy petition under §§301, 302, or 303 of
title 11, an automatic stay applies to all entities — including
[LENDER] as a creditor or servicer — prohibiting (1) commencement or
continuation of any judicial, administrative, or other action against
the debtor that arose pre-petition; (2) enforcement of pre-petition
judgments; (3) acts to obtain possession of or exercise control over
property of the estate; (4) acts to create, perfect, or enforce any
lien against property of the estate; (5) acts to create, perfect, or
enforce against debtor's property any lien securing a pre-petition
claim; (6) acts to collect, assess, or recover a pre-petition claim;
(7) setoff of pre-petition debt; and (8) U.S. Tax Court proceedings
on certain tax periods.?

**§8.2** — Can the lender demonstrate that the automatic stay prohibits [LENDER] from any act to create, perfect,
or enforce any lien against property of the bankruptcy estate. Any
post-petition lien-perfection step (mortgage assignment recording in
most jurisdictions, lis pendens, mechanic's-lien filing, etc.)
affecting estate property requires either stay relief under §362(d)
or qualification under a §362(b) exception.?

**§8.3** — Can the lender demonstrate that the automatic stay prohibits [LENDER] from any act to collect, assess,
or recover a claim against the debtor that arose pre-petition. This
includes dunning letters, late-fee assessments tied to pre-petition
arrears, demand calls, and statement language that demands payment of
pre-petition arrears — all of which must be suppressed on
bankruptcy-notice receipt.?

**§8.4** — Can the lender demonstrate that on request of a party in interest and after notice and a hearing, the
bankruptcy court shall grant relief from the stay (by terminating,
annulling, modifying, or conditioning it) (1) for cause, including
lack of adequate protection; (2) with respect to property where the
debtor lacks equity and the property is not necessary to an effective
reorganization; (3) on single-asset real estate, subject to the
90-day reorganization-plan/monthly-payment standards; and (4) on real
property where the petition was part of a scheme to delay, hinder, or
defraud creditors through unauthorized transfers or multiple filings.
[LENDER] seeking to foreclose on mortgaged property must obtain stay
relief under one of these grounds unless the loan qualifies for a
§362(b) exception or the stay has terminated under §362(c).?

**§8.5** — Can the lender demonstrate that an individual injured by any willful violation of the automatic stay
shall recover actual damages, including costs and attorneys' fees,
and, in appropriate circumstances, may recover punitive damages. For
[LENDER], the willful-violation standard does not require malice —
knowing of the petition and continuing the violating act is generally
sufficient. Internal controls must include reliable bankruptcy-flag
propagation across collection, foreclosure, escrow, and assessment
systems to prevent §362(k) exposure.?

### §9. Chapter 13 Plan Cure of Arrearages

**§9.1** — Can the lender demonstrate that a Chapter 13 plan may modify the rights of holders of secured claims —
but NOT a claim secured only by a security interest in real property
that is the debtor's principal residence. [LENDER] holding a first-lien
mortgage on the debtor's principal residence is protected by this
anti-modification rule from cramdown of principal balance, interest
rate, or maturity (subject to the §1322(c)(2) exception where the
final payment is due before the plan's final payment).?

**§9.2** — Can the lender demonstrate that a Chapter 13 plan may provide for the curing or waiving of any default.
[LENDER] processing a confirmed Chapter 13 plan that cures a mortgage
arrearage must apply payments consistent with the plan's cure schedule
(typically via trustee disbursement) and recognize the contractual
default as cured upon completion.?

**§9.3** — Can the lender demonstrate that notwithstanding §1322(b)(2), a Chapter 13 plan may provide for curing
any default within a reasonable time AND maintenance of ongoing
payments while the case is pending on any secured claim where the
last payment is due after the plan's final payment date — the
standard treatment of long-term mortgage debt in Chapter 13.
[LENDER]'s bankruptcy workflow must accept post-petition ongoing
payments (typically conduit through the Chapter 13 trustee) and
arrearage cure payments concurrently per the confirmed plan.?

**§9.4** — Can the lender demonstrate that notwithstanding §1322(b)(2) and applicable nonbankruptcy law, a default
that gave rise to a lien on the debtor's principal residence may be
cured under §1322(b)(3) or (5) until the residence is sold at a
foreclosure sale conducted in accordance with applicable nonbankruptcy
law. [LENDER]'s foreclosure team must therefore recognize that a
Chapter 13 petition filed at any time prior to the actual foreclosure
sale can revive cure rights on the mortgage default.?

**§9.5** — Can the lender demonstrate that if a Chapter 13 plan proposes to cure a default, the amount necessary
to cure shall be determined in accordance with the underlying agreement
and applicable nonbankruptcy law (notwithstanding §1322(b)(2) and
§§506(b) and 1325(a)(5)). [LENDER]'s proof-of-claim arrearage
calculation must therefore reflect the note, mortgage, and applicable
state law — not a unilateral §506(b)-only figure.?

### §10. FNMA Servicing Guide D1-1 — General Default-Servicing Standards

**§10.1** — Can the lender demonstrate that to request a review for a release, or partial release, of property
securing a Fannie Mae mortgage loan, the borrower must submit an
Application for Release of Security (Form 236) to [LENDER]. An
application is considered complete when all required documentation and
information, as outlined within the Servicing Guide and Form 236, has
been obtained. When [LENDER] receives a complete application, [LENDER]
must counsel the borrower to consider the costs and benefits of any
action covered by this policy prior to evaluating the request and must
then evaluate each request in accordance with the Guide.?

**§10.2** — Can the lender demonstrate that with the exception of eminent domain actions that fall within the
policies in the Servicing Guide, all requests related to Texas Section
50(a)(6) loans must be escalated to Fannie Mae for review and
decisioning; [LENDER] must submit the complete application and all
required documentation to Fannie Mae's SF CPM division.?

### §11. FNMA Servicing Guide D2-1 — Working with a Borrower Facing Default

**§11.1** — Can the lender demonstrate that [LENDER] must consider available workout options when [LENDER] is
notified or otherwise becomes aware of events or factors that are
expected to cause the borrower's monthly payment to be in default
within the next 90 days ("imminent default").?

**§11.2** — Can the lender demonstrate that [LENDER] must not solicit borrowers who are current or less than 30
days delinquent for a workout option.?

### §12. FNMA Servicing Guide D2-2 — Requirements for Contacting a Borrower

**§12.1** — Can the lender demonstrate that [LENDER] (servicer) shall make every attempt to achieve Quality
Right Party Contact (QRPC) with the borrower, co-borrower, or
trusted advisor. The purpose of QRPC is to determine the
delinquency reason, occupancy status, ability to repay, educate
the borrower on workout options, and obtain a commitment to
resolve the delinquency.?

**§12.2** — Can the lender demonstrate that [LENDER] (servicer) shall begin outbound contact attempts no
later than the 36th day of delinquency and shall continue
outbound contact attempts every 7 days until QRPC is achieved
(and/or borrower adheres to a workout agreement), the delinquency
is resolved, a complete Borrower Response Package (BRP) is
received, the borrower has provided a promise to pay (≤30 days),
or QRPC is achieved and the borrower indicates no interest in a
workout option. [LENDER] is authorized but not required to begin
earlier than day 36 (e.g., using behavioral models).?

**§12.3** — Can the lender demonstrate that unless required by applicable law to continue outbound contact
attempts to the delinquent borrower, [LENDER] (servicer) shall
discontinue all outbound contact attempts: (a) 60 days prior to
the judicial foreclosure sale date, or (b) 30 days prior to a
non-judicial foreclosure sale date. The pre-sale outbound-stop
rule prevents harassment-pattern claims while foreclosure
proceedings finalize.?

**§12.4** — Can the lender demonstrate that when [LENDER] (servicer) communicates with the borrower during
outbound contact attempts, [LENDER] shall emphasize the
importance of making payments on or prior to their due dates.
The messaging requirement reinforces FNMA's preference for
payment-current resolution before workout-option escalation.?

**§12.5** — Can the lender demonstrate that [LENDER] (servicer) shall send a payment reminder notice to the
borrower no later than the 20th day of the month if the payment
has not been received. Exceptions apply when (a) the mortgage
loan is a second lien mortgage loan (see D2-2-09) or (b) the
borrower is subject to an active forbearance plan (without regard
to whether the plan provides for reduced or suspended payments).
The notice must address the borrower by name, state a desire to
work with the borrower to preserve homeownership, state the
amount of late charges due (if applicable), and explain late-
payment-credit-reporting consequences.?

### §13. FNMA Servicing Guide D2-3 — Home Retention and Liquidation Workout Options

**§13.1** — Can the lender demonstrate that [LENDER] must not require the borrower to make an upfront cash
contribution to be considered for a workout option on a Fannie Mae
mortgage loan.?

**§13.2** — Can the lender demonstrate that [LENDER] must not modify a mortgage loan while it is in an MBS pool
(including PFP mortgage loans); performing MBS mortgage loans are
ineligible for purchase from the related MBS pool for the purpose of
modifying the mortgage loan term, interest rate, UPB, or other major
characteristic(s) of the mortgage loan.?

### §14. FHLMC Single-Family Guide Chapter 9101 — Delinquency Management

**§14.1** — Can the lender demonstrate that [LENDER] must treat each Delinquency individually by varying the
collection techniques to fit the individual circumstances, and must
avoid establishing a fixed routine — particularly when dealing with
chronically delinquent Borrowers.?

**§14.2** — Can the lender demonstrate that if there is a known potential risk of loss or ownership to Freddie
Mac, [LENDER] must refer the Borrower for loss mitigation
immediately.?

**§14.3** — Can the lender demonstrate that if an ACH payment cannot be processed on the specified date the
Borrower has agreed to, [LENDER] must begin efforts to contact the
Borrower within 48 hours to determine the reason for the missed
payment.?

### §15. FHLMC Single-Family Guide Chapter 9201 — Loss Mitigation Evaluation Hierarchy

**§15.1** — Can the lender demonstrate that if a Borrower contacts [LENDER] for loss mitigation assistance,
[LENDER] must first determine if the Borrower can bring the loan
current through reinstatement, and only then proceed through the
workout-option hierarchy set forth in Section 9201.2(a).?

**§15.2** — Can the lender demonstrate that [LENDER] must first determine if the Borrower has a temporary or
permanent hardship in conducting the loss mitigation evaluation
hierarchy, because the workout-option order depends on the hardship
classification.?

**§15.3** — Can the lender demonstrate that [LENDER]'s loss mitigation activities must include pursuing
reinstatement as the first option, analyzing the Borrower's financial
situation and intentions, determining property value and Freddie
Mac's potential loss, pursuing alternatives to foreclosure in
accordance with the Section 9201.2 hierarchy, and continuing to
pursue alternatives even after foreclosure has been initiated.?

### §16. FHLMC Single-Family Guide Chapter 9203 — Reinstatements and Relief Options

**§16.1** — Can the lender demonstrate that [LENDER] must accept full reinstatement of a Mortgage if the payment,
in cash or certified funds, includes the total delinquent amount,
accrued interest and unpaid principal, actual legal costs, BPO costs
(if applicable), inspection fees, and accrued late charges.?

**§16.2** — Can the lender demonstrate that [LENDER] must not refuse to accept a full reinstatement if the
Borrower offers to pay all amounts due except for the cost of the
BPO, inspection fees, and accrued late charges; arrangements for
those charges may be made after the Mortgage is reinstated.?

**§16.3** — Can the lender demonstrate that [LENDER] must not charge or collect from the Borrower an amount that
exceeds the expense limits specified in Exhibit 57A, except in cases
where a higher expense amount is legally allowable and recoverable;
and the payment must not include reimbursement for costs the Servicer
incurred if applicable law prohibits collection of those costs from
the Borrower.?

### §17. FHLMC Single-Family Guide Chapter 9204 — Freddie Mac Workout Options

**§17.1** — Can the lender demonstrate that [LENDER] must evaluate Borrowers in accordance with the Freddie Mac
loss mitigation evaluation hierarchy set forth in Section 9201.2 for
Freddie Mac's available workout options including Mortgage
modifications, workout Mortgage assumptions, short sales,
deeds-in-lieu of foreclosure, and charge-offs.?

**§17.2** — Can the lender demonstrate that [LENDER] must collect and analyze the required documentation and
information in accordance with Chapter 9204 and Chapter 9202 as a
required step for completing a workout.?

**§17.3** — Can the lender demonstrate that [LENDER] must perform all activities required for closing a workout
within Freddie Mac's required time frames, including settlement
transactions, recording required documents, reporting the transaction
to Freddie Mac, remitting funds collected, and submitting requests
for reimbursement of allowable expenses within 30 days of settlement.?

### §18. HUD Handbook 4000.1 III.A.2.h — Loss Mitigation Program (FHA)

**§18.1** — Can the lender demonstrate that before offering any FHA Loss Mitigation Option, [LENDER] must verify
that the Borrowers are eligible to participate in HUD's Loss
Mitigation Program (no other FHA-insured real estate beyond the
stated exceptions; no FHA-claim-paid prior loan within the past three
years; no debarment/suspension/LDP for Loan Mod, Partial Claim,
Combination, or Payment Supplement; no unresolved delinquent Federal
Debt for Partial Claim / Combination / Payment Supplement).?

**§18.2** — Can the lender demonstrate that for each FHA-insured forward Mortgage in Default, [LENDER] must
complete an evaluation of the Defaulted Mortgage for appropriate Loss
Mitigation Options before four monthly installments are due and
unpaid, and send a written Notice to Borrower with the determination
of eligibility.?

**§18.3** — Can the lender demonstrate that [LENDER] must not condition the use of a Loss Mitigation Option on
the receipt of a Borrower's cash contribution or a Borrower's payment
of fees or charges.?

### §19. HUD Handbook 4000.1 III.A.2.i — Loss Mitigation Home Retention Options

**§19.1** — Can the lender demonstrate that [LENDER] must review the Borrower for a Repayment Plan if the Borrower
affirms the monthly installment amount required under the terms of
the Repayment Plan Agreement is affordable.?

**§19.2** — Can the lender demonstrate that [LENDER] must ensure the term of the Repayment Plan does not exceed
24 months, and must require the delinquency to be repaid in equal
monthly installments, in addition to the Mortgage Payments, over the
term of the Repayment Plan.?

**§19.3** — Can the lender demonstrate that [LENDER] must provide the Borrower with the Repayment Plan Agreement
at least 15 Days before the date the first installment is due. The
Borrower is not required to sign and return the Repayment Plan
Agreement.?

### §20. HUD Handbook 4000.1 III.A.2.j — Home Disposition Options

**§20.1** — Can the lender demonstrate that [LENDER] must review Borrowers for Home Disposition Options who are
unable to sustain the Mortgage with the assistance of a Loss
Mitigation Home Retention Option.?

**§20.2** — Can the lender demonstrate that [LENDER] must notify the Borrower that they may be able to avoid
foreclosure by selling their home with a traditional sale or a PFS
Option.?

**§20.3** — Can the lender demonstrate that if the Borrower advises that their financial situation has improved
during the PFS or DIL process and wants to retain the Property,
[LENDER] must review the Borrower for one additional Loss Mitigation
Home Retention Option.?

### §21. Ginnie Mae MBS Guide Chapter 18 — Mortgage Delinquency and Default

**§21.1** — Can the lender demonstrate that no [ISSUER] or subcontract servicer may, without the written
permission of Ginnie Mae, remove a loan, whether pursuant to a
substitution or otherwise, from a pool or loan package, or reduce
a balance on a pooled loan for any reason not specifically
authorized in the applicable Guaranty Agreement or in this Guide.?

**§21.2** — Can the lender demonstrate that [ISSUERS] are prohibited from modifying the terms of loans held in
Ginnie Mae pools that affect the amount or duration of loan payments.?

**§21.3** — Can the lender demonstrate that [ISSUERS] must maintain delinquency rates on outstanding pools and
loan packages below the threshold levels described in Chapter 18
Part 3 Section C. Data used to measure delinquency rates will come
from the RFS Issuer Monthly Report of Pool and Loan Data
(Appendix VI-19).?

### §22. USDA HB-1-3555 Chapter 17 — Regular Servicing (Performing Loans)

**§22.1** — Can the lender demonstrate that the Agency must be notified within 15 days of a sale or
servicing transfer by submitting Form RD 3555-11 to the Single
Family Housing Servicing Branch, Lender Reporting Section.
Agency notification should be password protected or encrypted
and emailed to rd.so.hsb@usda.gov.?

**§22.2** — Can the lender demonstrate that [SVCRS] are required to report monthly loan status (203) and
monthly loan default status (264) reports for all SFHGLP loans
in their portfolio via Electronic Status Reporting (ESR) by
the sixth government workday of each month. [SVCRS] are also
required to review and correct status and default reject errors
starting on the 13th business day of the month through the last
day of the calendar month.?

**§22.3** — Can the lender demonstrate that [SVCRS] must have adequate internal control processes to
ensure that real estate taxes, assessments, and flood and
hazard insurance premiums are paid as required for all
property securing a guaranteed loan. Escrow funds may be used
only for the purpose for which they were collected. Escrow
accounts for all guaranteed loans must be administered in
accordance with all applicable regulations and must be insured
by the FDIC or the NCUA insurance fund.?

### §23. USDA HB-1-3555 Chapter 18 — Servicing Non-Performing Loans (Loss Mitigation)

**§23.1** — Can the lender demonstrate that [SVCR] must attempt to make verbal or written contact with the
borrower on or before the day an account becomes 20 days past
due. [SVCR] must send a letter to the borrower if unable to
reach the borrower by telephone. This contact must solicit
enough information to evaluate the borrower's ability to cure
the default and determine additional servicing actions.?

**§23.2** — Can the lender demonstrate that before an account becomes 60 days past due and if there is no
payment arrangement in place, [LENDER] must send a certified
letter to the borrower requesting an interview for the purpose
of resolving the past due account. The letter should emphasize
the importance of meeting the debt obligation and explain the
negative impact of non-repayment on the borrower's credit
history.?

**§23.3** — Can the lender demonstrate that on or before the day an account becomes 60 days past due and
before initiating a liquidation action, [SVCR] must assess
the physical condition of the property, determine occupancy,
and take the necessary steps to preserve and protect the
property.?

### §24. VA Servicer Handbook M26-4 Chapter 5 — Loss Mitigation

**§24.1** — Can the lender demonstrate that [SERVICER] must offer the Special Forbearance when the borrower
indicates they can repay the missed payments in a lump sum, as
outlined on the VA Home Retention Waterfall.?

**§24.2** — Can the lender demonstrate that [SERVICER] must discuss and offer, if appropriate, the repayment
plan when the borrower indicates they can repay the current loan
payment plus additional amounts to bring the loan current, as
outlined in the VA Home Retention Waterfall.?

**§24.3** — Can the lender demonstrate that where VA notifies [SERVICER] of a loan modification correction
needed because terms negatively impact the Veteran or the
Government, [SERVICER] must complete all corrections within 60
days of notification by VA. Failure to make corrections within the
required timeframe could result in VA adjusting the claim if the
loan becomes delinquent and subsequently terminates.?

### §25. HUD Handbook 4000.1 III.A.1 — Servicing of FHA-Insured Mortgages (Foundations)

**§25.1** — Can the lender demonstrate that only FHA-approved Mortgagees may service FHA-insured Mortgages.
[LENDER] (Mortgagee) may service Mortgages it holds or that are
held by other FHA-approved Mortgagees, but every entity in the
servicing chain must hold FHA approval. The approval-required
rule is the foundational gating control for FHA servicing.?

**§25.2** — Can the lender demonstrate that mortgage Holders shall ensure all FHA-insured Mortgages are
serviced by a Servicer in accordance with FHA requirements and
all applicable laws. The Holder cannot delegate compliance
responsibility — [LENDER] (as Holder) retains affirmative duty
to ensure servicer conformance.?

**§25.3** — Can the lender demonstrate that [LENDER] (Mortgagee) shall comply with all laws, rules, and
requirements applicable to mortgage servicing, including full
compliance with the applicable requirements under the purview
of the Consumer Financial Protection Bureau (CFPB) — including
the Real Estate Settlement Procedures Act (RESPA) and the Truth
in Lending Act (TILA) — and, if applicable, Ginnie Mae's
mortgage-backed securities requirements.?

**§25.4** — Can the lender demonstrate that where mortgage contract terms are more stringent or restrictive
than those provided for in applicable law, [LENDER] (Mortgagee)
shall comply with the mortgage contract terms. The contract-
prevails-when-more-stringent rule prevents [LENDER] from
diluting Borrower contractual protections to the legal floor.?

**§25.5** — Can the lender demonstrate that the costs associated with subservicing may NOT be imposed on the
Borrower or passed along to HUD in a claim for mortgage
insurance benefits. [LENDER] (Mortgagee) shall absorb
subservicing operational costs as an internal cost of doing
business — neither the Borrower nor the FHA insurance fund
bears the subservicing cost burden.?

### §26. HUD Handbook 4000.1 III.A.2 — Default Servicing (Definitions, Late Charges, CRA/IRS Reporting)

**§26.1** — Can the lender demonstrate that a Mortgage is in Default when the Borrower fails to make any
payment or perform any other obligation under the Mortgage, and
such failure continues for a period of 30 Days. [LENDER]
(Mortgagee) shall use this Default definition for FHA-loss-
mitigation, claim, and reporting timelines. The 30-day
uncorrected-failure threshold is the canonical FHA Default
trigger.?

**§26.2** — Can the lender demonstrate that [LENDER] (Mortgagee) shall ensure FHA-insured Mortgages in
Delinquency or Default are serviced in accordance with FHA
requirements and applicable laws. The compliance stack spans
FHA Default Servicing rules (this chapter), CFPB Reg X loss-
mit servicing rules, FCRA/FDCPA, state default-servicing law,
and any borrower-protective contract terms.?

**§26.3** — Can the lender demonstrate that for the purpose of determining the date of Default and timelines
related to Default, HUD considers all months to have 30 Days.
[LENDER] (Mortgagee) shall apply this 30-day-month convention to
Default-date computation and all downstream loss-mitigation,
foreclosure-initiation, and claim-filing deadlines tied to
Default.?

**§26.4** — Can the lender demonstrate that for FHA Mortgages assigned a case number on or after March 14,
2016, [LENDER] (Mortgagee) may assess a Late Charge NOT TO
EXCEED 4 percent of the overdue payment of Principal and
Interest (P&I), in accordance with applicable state and federal
laws. For Mortgages assigned a case number BEFORE March 14,
2016, the Late Charge may be calculated based on overdue PITI
if permitted under Note + state/federal laws.?

**§26.5** — Can the lender demonstrate that before collecting the Late Charge or returning a Mortgage Payment
to the Borrower for failing to pay the Late Charge, [LENDER]
(Mortgagee) shall provide the Borrower with an advance written
notice of the charge. The notice shall include (1) the due date
of the monthly Mortgage Payment, (2) the amount of the regular
monthly Mortgage Payment, (3) the date on which the Late Charge
will be imposed, and (4) the amount of the Late Charge (or full
amount now due).?

### §27. HUD Handbook 4000.1 III.A.2 — FHA Loss Mitigation Program (9-Option Waterfall + 90-Day Review)

**§27.1** — Can the lender demonstrate that in implementing HUD's Loss Mitigation Program, [LENDER]
(Mortgagee) shall consider all reasonable means to address
delinquency at the earliest possible time. The early-engagement
duty is the foundation of FHA loss mitigation; delay reduces
workout-success likelihood and increases foreclosure risk.?

**§27.2** — Can the lender demonstrate that [LENDER] (Mortgagee) shall re-evaluate each Delinquent Mortgage
for Loss Mitigation Options, as required. Re-evaluation is
ongoing, not one-shot — circumstances change and prior workout
ineligibility may resolve; [LENDER] cannot lock a Borrower
into a single point-in-time eligibility determination.?

**§27.3** — Can the lender demonstrate that [LENDER] (Mortgagee) shall consider Owner-Occupant Borrowers AND
Non-Occupant Borrowers for all Loss Mitigation Options.
Investor-occupancy or non-occupancy is NOT a categorical
disqualifier from loss mitigation — both occupancy classes get
the full waterfall review.?

**§27.4** — Can the lender demonstrate that [LENDER] (Mortgagee) is required to complete an evaluation of a
Defaulted Mortgage for appropriate Loss Mitigation Options
BEFORE four monthly installments are due and unpaid AND send a
written Notice to Borrower with the determination of
eligibility. The 90-Day Review pre-4-installment bright-line
caps the loss-mit-evaluation-completion deadline for FHA loans
in default.?

**§27.5** — Can the lender demonstrate that [LENDER] (Mortgagee) shall offer eligible servicemember Borrowers
mortgage protections under the SCRA and Servicing FHA-Insured
Mortgages for Servicemember-Borrowers. The SCRA + FHA-
servicemember dual-rule layering provides comprehensive
protection during military service.?

### §28. FNMA Servicing Guide D2-2 — QRPC + Outbound Contact + Payment Reminder

**§28.1** — Can the lender demonstrate that [LENDER] (servicer) shall make every attempt to achieve Quality
Right Party Contact (QRPC) with the borrower, co-borrower, or
trusted advisor. The purpose of QRPC is to determine the
delinquency reason, occupancy status, ability to repay, educate
the borrower on workout options, and obtain a commitment to
resolve the delinquency.?

**§28.2** — Can the lender demonstrate that [LENDER] (servicer) shall begin outbound contact attempts no
later than the 36th day of delinquency and shall continue
outbound contact attempts every 7 days until QRPC is achieved
(and/or borrower adheres to a workout agreement), the delinquency
is resolved, a complete Borrower Response Package (BRP) is
received, the borrower has provided a promise to pay (≤30 days),
or QRPC is achieved and the borrower indicates no interest in a
workout option. [LENDER] is authorized but not required to begin
earlier than day 36 (e.g., using behavioral models).?

**§28.3** — Can the lender demonstrate that unless required by applicable law to continue outbound contact
attempts to the delinquent borrower, [LENDER] (servicer) shall
discontinue all outbound contact attempts: (a) 60 days prior to
the judicial foreclosure sale date, or (b) 30 days prior to a
non-judicial foreclosure sale date. The pre-sale outbound-stop
rule prevents harassment-pattern claims while foreclosure
proceedings finalize.?

**§28.4** — Can the lender demonstrate that when [LENDER] (servicer) communicates with the borrower during
outbound contact attempts, [LENDER] shall emphasize the
importance of making payments on or prior to their due dates.
The messaging requirement reinforces FNMA's preference for
payment-current resolution before workout-option escalation.?

**§28.5** — Can the lender demonstrate that [LENDER] (servicer) shall send a payment reminder notice to the
borrower no later than the 20th day of the month if the payment
has not been received. Exceptions apply when (a) the mortgage
loan is a second lien mortgage loan (see D2-2-09) or (b) the
borrower is subject to an active forbearance plan (without regard
to whether the plan provides for reduced or suspended payments).
The notice must address the borrower by name, state a desire to
work with the borrower to preserve homeownership, state the
amount of late charges due (if applicable), and explain late-
payment-credit-reporting consequences.?

### §29. FNMA Servicing Guide D2-3.1 — Workout Conditions + Group Home Servicing

**§29.1** — Can the lender demonstrate that [LENDER] (servicer) shall NOT modify a mortgage loan while it is
in an MBS pool (including PFP mortgage loans). Performing MBS
mortgage loans are ineligible for purchase from the related MBS
pool for the purpose of modifying the mortgage loan term,
interest rate, UPB, or other major characteristics. The MBS-
structural constraint prevents pool-level investor interest
dilution via loan-level modifications.?

**§29.2** — Can the lender demonstrate that [LENDER] (servicer) may remove a special-servicing-option
mortgage loan from its MBS pool for modification only if the
mortgage loan has been in a continuous state of delinquency for
four consecutive monthly payment due dates (or at least eight
consecutive payment due dates in the case of a biweekly mortgage
loan) without a full cure of the delinquency during that period.
The bright-line delinquency-duration threshold prevents premature
pool removal.?

**§29.3** — Can the lender demonstrate that [LENDER] (servicer) shall ensure that the mortgage loan
modification is NOT implemented if the required Trial Period
Plan payments are not made in accordance with the applicable
mortgage loan modification workout option, because the
preconditions to make the modification effective have not been
satisfied. The Trial Period Plan payment record is the operative
gate for permanent modification.?

**§29.4** — Can the lender demonstrate that [LENDER] (servicer) shall ensure that a mortgage loan
modification does NOT become effective while it remains in an
MBS pool. The modification agreement must be executed after the
mortgage loan has been removed from any MBS pool and reclassified
as a Fannie Mae portfolio mortgage loan, and must reflect the
actual date of [LENDER]'s execution.?

**§29.5** — Can the lender demonstrate that for mortgage loans where the property securing the mortgage loan
serves as a group home, [LENDER] (servicer) shall work with the
borrower AND the funding agency to resolve a serious delinquency.
[LENDER] shall devote additional resources to foreclosure
prevention efforts when the group home is still occupied by
disabled tenants and, if appropriate, delay the initiation of
foreclosure. The group-home rule recognizes the vulnerable-
population housing-protection context.?

### §30. FNMA Servicing Guide A4-1-01 — Servicer Staffing/Training/QC Foundations

**§30.1** — Can the lender demonstrate that [LENDER] (servicer) shall have sufficient staffing levels and
properly trained staff (INCLUDING third-party providers of its
outsourced servicing activities) to: (1) carry out all aspects of
its servicing duties in accordance with the timing requirements of
the Servicing Guide; (2) maintain acceptable performance standards;
and (3) provide borrowers with assistance when it is requested.?

**§30.2** — Can the lender demonstrate that [LENDER] (servicer) shall design and implement a training program
that includes: (1) the fundamentals of all Fannie Mae workout
options programs; (2) familiarity with F-2-10 (Fannie Mae's Workout
Hierarchy); (3) annual training and as-training-needs-are-identified
through quality assurance reviews; (4) continual training on policy
changes communicated through Announcements, Lender Letters, and
other Fannie Mae correspondence; and (5) training on compliance
with applicable laws and regulations. Foreclosure and bankruptcy
staff must additionally be knowledgeable about Fannie Mae's workout
options.?

**§30.3** — Can the lender demonstrate that [LENDER] (servicer) shall have fully documented written policies
and/or procedures that address all aspects of mortgage servicing
to ensure its staff, and any outsourcing firms and third-party
vendors used by [LENDER], consistently comply with Fannie Mae's
requirements. Required topics include (but are not limited to):
oversight of outsourcing/third-party vendors, FHFA Suspended
Counterparty Program list screening, controls for automated
payment direct-debits, and other servicing-operations controls
listed in the A4-1-01 written-policies table.?

**§30.4** — Can the lender demonstrate that [LENDER] (servicer) shall ensure its staff dedicated to delinquent
borrowers provides continuity of contact with the borrower AND
allows the borrower to contact one individual or a dedicated team
of individuals in [LENDER]'s organization to obtain accurate
information on the various workout options available. When using a
team approach, [LENDER] shall provide the borrower with the ability
to request and speak to, or leave a message for, a specific person
from the assigned team.?


## Appendix B — Operational Best Practices (optional)

_The body of this P&P gives you regulatory-complete federal coverage with auditor-minimum-evidence pathways called out per obligation. This appendix is **optional operational guidance** — use whatever fits your existing infrastructure and skip the rest._

### Two universal questions per obligation

For every obligation in this P&P, you'll want to answer two operational questions:

1. **Who owns this?** Which position carries primary responsibility; what training they need; how often it's refreshed; how an underperformer is identified and retrained.
2. **How will you produce the auditor-minimum evidence?** For each AME pathway above, what control(s) at your shop generate the records, timestamps, documents, system logs, or third-party attestations the auditor will ask to see.

### Three ways to answer question #2

**(a) Map to your existing infrastructure.** Most established shops already have most of what they need. A typical mapping:

- Deadline / SLA tracking → your existing case-management tool (Salesforce Service Cloud queue, Workday workflow SLA, JIRA due-date, ServiceNow incident SLA, Black Knight LSAMS task, etc.)
- Document templates + approval → your existing doc-gen system (Conga, DocuSign Templates, internal Word library) with version-stamped review by Compliance
- Pre-send checklists → existing workflow gate (Salesforce validation rules, LSS workflow stage, Wrike approval step)
- Exception reports → existing BI tooling (Tableau, Power BI, Looker, Snowflake dashboards, native LSS reports)
- Audit/QC sampling → existing internal-audit or compliance-QC program

Use the existing tooling. For each AME pathway above, write into your local P&P (alongside or replacing this appendix) the specific Acme-Tool name + the configuration that produces that pathway's evidence.

**(b) Adopt a pre-built Cowork agent.** If you have a gap and want a starting point that doesn't require integration work, CSH publishes a small library of pre-built Claude Cowork agent templates tied to the AME pathways. Each template documents what inputs you'll need to provide (typically a data source URL + a role-to-recipient mapping + urgency tiers) and runs read-only on borrower data. Suggestions per obligation are listed below — pick what fits, ignore the rest.

**(c) Hybrid — your tooling + a CSH agent for a specific gap.** Common pattern: keep existing infrastructure for the deadline and reporting work; adopt a CSH agent only for the narrow thing you don't currently cover (e.g., a Matrix Drift Watcher for investor-guide changes you currently track manually).

### Per-obligation Cowork agent suggestions

Only the obligations below have ready CSH agent templates. Other obligations in this P&P don't have published templates yet — operationalize them using your existing infrastructure (option (a) above) until the library grows.

#### For 12 CFR §1024.41(b)(2)(i) — Acknowledgment of receipt of loss mitigation application

_3 pre-built Cowork agents you could adopt:_

1. **Loss Mitigation Clock-Watcher** (`csh-agent-loss-mit-clock-watcher` `v1`) — ~45-min setup
   Watches a configurable deadline clock (5-day / 30-day / 37-day / etc.) on every open file in a tracking spreadsheet or LSS query; emails the responsible specialist + team lead + manager at configurable urgency tiers.
   _Inputs you'd supply: deadline_definition, data_source, urgency_tiers, notification_routing, action_links_

2. **Compliance Template Version Watcher** (`csh-agent-template-version-watcher` `v1`) — ~45-min setup
   Detects when a compliance-approved template (acknowledgment notice, determination notice, etc.) is used at an OUTDATED version on a file; alerts the responsible specialist + compliance officer to re-issue with current version.
   _Inputs you'd supply: template_registry_path, file_scan_scope, outdated_threshold, notification_routing_

3. **Pre-Send Compliance Gate** (`csh-agent-pre-send-gate` `v1`) — ~30-min setup
   Intercepts a document being sent to a borrower (notice, disclosure, response), runs the compliance-officer-approved pre-send checklist as automated checks where possible, and blocks send until checklist is satisfied or operator overrides with documented justification.
   _Inputs you'd supply: checklist_definition, doc_gen_hook, override_authority_

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

_4 pre-built Cowork agents you could adopt:_

1. **Loss Mitigation Clock-Watcher** (`csh-agent-loss-mit-clock-watcher` `v1`) — ~45-min setup
   Watches a configurable deadline clock (5-day / 30-day / 37-day / etc.) on every open file in a tracking spreadsheet or LSS query; emails the responsible specialist + team lead + manager at configurable urgency tiers.
   _Inputs you'd supply: deadline_definition, data_source, urgency_tiers, notification_routing, action_links_

2. **Compliance Template Version Watcher** (`csh-agent-template-version-watcher` `v1`) — ~45-min setup
   Detects when a compliance-approved template (acknowledgment notice, determination notice, etc.) is used at an OUTDATED version on a file; alerts the responsible specialist + compliance officer to re-issue with current version.
   _Inputs you'd supply: template_registry_path, file_scan_scope, outdated_threshold, notification_routing_

3. **Investor Matrix Drift Watcher** (`csh-agent-matrix-drift-watcher` `v1`) — ~30-min setup
   Detects when an investor loss-mit option matrix (FNMA / FHLMC / FHA / VA / USDA) changes during a file's open compliance window and an evaluation might apply a stale matrix; flags file for re-review.
   _Inputs you'd supply: matrix_registry_path, open_file_query, re_review_recipient_

4. **Pre-Send Compliance Gate** (`csh-agent-pre-send-gate` `v1`) — ~30-min setup
   Intercepts a document being sent to a borrower (notice, disclosure, response), runs the compliance-officer-approved pre-send checklist as automated checks where possible, and blocks send until checklist is satisfied or operator overrides with documented justification.
   _Inputs you'd supply: checklist_definition, doc_gen_hook, override_authority_

### Want help, or want to redo this P&P entirely?

The csh-p-and-p-update Claude skill (Cowork-compatible) can walk through this P&P with you, ask about your tooling, and write your operational answers (option (a), (b), or hybrid) back into the P&P artifact — about 10 minutes per obligation.

If you want to **completely redraft this P&P from current industry best practices** using the CSH framework, that's a larger project (typically a multi-week engagement). The free library + the wedge skill is the starting place; the full rebuild is a later conversation if you decide that's where you want to go.

---

> **None of this appendix is required for regulatory compliance.** The body of this P&P is the federal regulatory artifact. This appendix is productivity and audit-trail guidance you can adopt or ignore based on your existing infrastructure and timeline.