Ballard Spahr is helping attorneys and servicers navigate through a recently issued guidance for residential mortgage servicers and subservicers who are transferring mortgage servicing rights.
The firm issued the following bullet points on what servicers should be mindful of with the CFPB now evaluating servicing transfers.
- A transferor servicer's transfer preparation, which includes steps to ensure information is transferred in a way that is compatible with the transferee's servicing system and that procedures are in place to ensure the transferee receives adequate information to avoid a servicing interruption.
- A transferee servicer's handling of transferred files, which includes due diligence to ensure that the transferee conveys accurate information to consumers, has a servicing platform that accurately reflects account-level information, and conducts post-transfer audits to confirm the proper transfer of data.
- A transferor's and transferee's implementation of policies and procedures to prevent service interruptions for loans transferred during the loss mitigation process, such as procedures to ensure:
- The transferee's identification of loans in loss mitigation and receipt of information and documents related to such loans (including loss mitigation history and prior servicers' loss mitigation agreements and documents)
- The transferee's proper application of payments due under a loan modification agreement and consideration of such an agreement when conducting collection activit
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Ballard Spahr is also hosting a webinar on this issue.