Common use of Transfer of Servicing to Servicer Clause in Contracts

Transfer of Servicing to Servicer. a. Servicer must accept and continue to process pending loss mitigation applications from the prior servicer. i. Servicer must process pending loss mitigation applications upon the same time frames that applied to the transferor servicer prior to the transfer, except in the following situations: (a) If the transferor servicer received a loss mitigation application but had not yet sent the borrower a letter either confirming that the application is complete or identifying missing documents or information, Servicer must send such a letter within 10 days of the transfer date. (b) If the transferor servicer received a complete loss mitigation application but had not yet completed its evaluation, Servicer must complete the loss mitigation evaluation within 30 days of the transfer date. ii. Servicer may not attempt to obtain from the borrower any missing information or documents that were previously submitted by the borrower to the transferor servicer, without first contacting the transferor servicer to attempt to obtain the missing information or documents. iii. If the transferor servicer denied the loss mitigation application prior to the transfer, Servicer must ensure that the borrower receives 14 days to appeal the denial before taking any adverse action against the borrower. If there is a pending appeal at the time of the transfer, or if an appeal is made after the transfer date, the Servicer must make a determination within 30 days of the transfer date or within 30 days of the date the borrower made the appeal, whichever is later. If Servicer is unable to make a determination as to the appeal, Servicer must treat the borrower’s application as a pending complete application and evaluate it within 30 days of the transfer date or within 30 days of the date the borrower made the appeal, whichever is later. iv. Where Servicer identifies documents or information indicating that a loss mitigation application was pending on a loan within 60 days of transfer, including where loan file data indicates that such an application was pending, or where a borrower indicates the same, and Servicer lacks clear written evidence of a loss mitigation denial by the transferor servicer, Servicer shall take all reasonable steps to obtain documents that may not have been transferred or confirmation from the transferor servicer concerning the status of any loss mitigation activity or review of a loss mitigation request and shall: (a) Where the transferor servicer’s review was not complete, complete the review of the borrower’s prior loss mitigation request, after notifying the borrower of any necessary information missing from such application, and afford the borrower an opportunity to have the loss mitigation request reviewed through the independent evaluation and appeal process under paragraphs III.F.6 and III.G; or (b) Provide the borrower a written denial notice, in compliance with paragraph III.F.7, and provide the borrower 14 days to request an appeal of a loan modification denial under paragraph III.G. b. Servicer must honor trial and permanent loan modification agreements entered into by the prior servicer. i. If the transferor servicer extended a trial or permanent loan modification offer to the borrower, Servicer must ensure that the borrower has had at least 14 days to accept or reject the offer before taking any adverse action against the borrower. ii. If Servicer does not have evidence of a loan modification offer or agreement from the transferring servicer, but the borrower provides a copy of a loan modification offer or agreement, and the borrower has complied in good faith with the terms of that offer or agreement, that shall be deemed evidence of a loan modification offer or agreement. A borrower making payments that conform to the payment terms of the offer shall be deemed to be the borrower’s good faith compliance with the terms of the offer or agreement. However, if Servicer reasonably suspects potential fraud on the part of the borrower or their authorized agent, it may perform additional due diligence to confirm the validity of the loan modification offer or agreement, which shall include, but is not limited to, reasonable diligence in contacting the prior servicer before agreeing to honor the offer or agreement. iii. Servicer must ensure that trial period payments, including those received by the prior servicer, are applied in accordance with the trial period plan. iv. Servicer must ensure that post-modification payments, including those received by the prior servicer, are applied in accordance with the modified loan documents. c. Within 15 days after the transfer, Servicer must send a written notice to the borrower that contains the following items: i. The effective date of transfer of the servicing; ii. The name, address, and a collect call or toll-free telephone number for an employee or department of the transferee servicer that can be contacted by the borrower to obtain answers to servicing transfer inquiries; iii. The name, address, and a collect call or toll-free telephone number for an employee or department of the transferor servicer that can be contacted by the borrower to answer inquiries relating to the transfer of servicing; iv. The date on which the transferor servicer will cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments. These dates shall either be the same or consecutive days; v. Whether the transfer will affect the terms or the continued availability of mortgage life or disability insurance, or any other type of optional insurance, and any action the borrower must take to maintain such coverage; vi. A statement that the servicing transfer does not affect any term or condition of the security instrument other than terms directly related to the servicing of such loan; vii. A statement as to whether the loan was current or delinquent at transfer according to the records received by Servicer, the date for which the loan is due, and the total amount of the unpaid principal balance; viii. If there is an escrow account, Servicer must provide the escrow account balance according to the records received by Servicer; ix. If there is a suspense account, Servicer must provide a brief explanation of what a suspense account is, and Servicer must provide the suspense account balance; x. If Servicer is aware that there is a pending loss mitigation application or pending trial plan, Servicer must acknowledge that there is a pending application, that a review for a permanent payment solution is in process, and that Servicer will contact the borrower within 30 days of transfer; and xi. A notice that if there is a pending trial plan, the borrower must continue to make trial modification payments addressed to Servicer. d. For the 60 days before and after the date of the transfer of servicing of any mortgage loan, if the transferor servicer (rather than the transferee Servicer that should properly receive payment on the loan) received payment on or before the applicable due date (including any grace period allowed under the mortgage loan instruments), a payment may not be treated as late for any purpose. i. Servicer shall not charge or collect a late fee for any such payment. ii. Servicer must report any such payment as a timely made payment to credit reporting agencies, and Servicer shall not provide any adverse information about any such payment to credit reporting agencies. e. Servicer shall not commence, refer to, or proceed with foreclosure until Servicer has satisfied all requirements under paragraphs III.K.3.a and III.K.3.b.

Transfer of Servicing to Servicer. a. Servicer must accept and continue to process pending loss mitigation applications from the prior servicer. i. Servicer must process pending loss mitigation applications upon the same time frames that applied to the transferor servicer prior to the transfer, except in the following situations: (a) If the transferor servicer received a loss mitigation application but had not yet sent the borrower a letter either confirming that the application is complete or identifying missing documents or information, Servicer must send such a letter within 10 days of the transfer date. (b) If the transferor servicer received a complete loss mitigation application but had not yet completed its evaluation, Servicer must complete the loss mitigation evaluation within 30 days of the transfer date. ii. Servicer may not attempt to obtain from the borrower any missing information or documents that were previously submitted by the borrower to the transferor servicer, without first contacting the transferor servicer to attempt to obtain the missing information or documents. iii. If the transferor servicer denied the loss mitigation application prior to the transfer, Servicer must ensure that the borrower receives 14 days to appeal the denial before taking any adverse action against the borrower. If there is a pending appeal at the time of the transfer, or if an appeal is made after the transfer date, the Servicer must make a determination within 30 days of the transfer date or within 30 days of the date the borrower made the appeal, whichever is later. If Servicer is unable to make a determination as to the appeal, Servicer must treat the borrower’s application as a pending complete application and evaluate it within 30 days of the transfer date or within 30 days of the date the borrower made the appeal, whichever is later. iv. Where Servicer identifies documents or information indicating that a loss mitigation application was pending on a loan within 60 days of transfer, including where loan file data indicates that such an application was pending, or where a borrower indicates the same, and Servicer lacks clear written evidence of a loss mitigation denial by the transferor servicer, Servicer shall take all reasonable steps to obtain documents that may not have been transferred or confirmation from the transferor servicer concerning the status of any loss mitigation activity or review of a loss mitigation request and shall: (a) Where the transferor servicer’s review was not complete, complete the review of the borrower’s prior loss mitigation request, after notifying the borrower of any necessary information missing from such application, and afford the borrower an opportunity to have the loss mitigation request reviewed through the independent evaluation and appeal process under paragraphs III.F.6 and III.G; or (b) Provide the borrower a written denial notice, in compliance with paragraph III.F.7, and provide the borrower 14 days to request an appeal of a loan modification denial under paragraph III.G. b. Servicer must honor trial and permanent loan modification agreements entered into by the prior servicer. i. If the transferor servicer extended a trial or permanent loan modification offer to the borrower, Servicer must ensure that the borrower has had at least 14 days to accept or reject the offer before taking any adverse action against the borrower. ii. If Servicer does not have evidence of a loan modification offer or agreement from the transferring servicer, but the borrower provides a copy of a loan modification offer or agreement, and the borrower has complied in good faith with the terms of that offer or agreement, that shall be deemed evidence of a loan modification offer or agreement. A borrower making payments that conform to the payment terms of the offer shall be deemed to be the borrower’s good faith compliance with the terms of the offer or agreement. However, if Servicer reasonably suspects potential fraud on the part of the borrower or their authorized agent, it may perform additional due diligence to confirm the validity of the loan modification offer or agreement, which shall include, but is not limited to, reasonable diligence in contacting the prior servicer before agreeing to honor the offer or agreement. iii. Servicer must ensure that trial period payments, including those received by the prior servicer, are applied in accordance with the trial period plan. iv. Servicer must ensure that post-modification payments, including those received by the prior servicer, are applied in accordance with the modified loan documents. c. Within 15 days after the transfer, Servicer must send a written notice to the borrower that contains the following items: i. The effective date of transfer of the servicing; ii. The name, address, and a collect call or toll-free telephone number for an employee or department of the transferee servicer that can be contacted by the borrower to obtain answers to servicing transfer inquiries; iii. The name, address, and a collect call or toll-free telephone number for an employee or department of the transferor servicer that can be contacted by the borrower to answer inquiries relating to the transfer of servicing; iv. The date on which the transferor servicer will cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments. These dates shall either be the same or consecutive days; v. Whether the transfer will affect the terms or the continued availability of mortgage life or disability insurance, or any other type of optional insurance, and any action the borrower must take to maintain such coverage; vi. A statement that the servicing transfer does not affect any term or condition of the security instrument other than terms directly related to the servicing of such loan; vii. A statement as to whether the loan was current or delinquent at transfer according to the records received by Servicer, the date for which the loan is due, and the total amount of the unpaid principal balance; viii. If there is an escrow account, Servicer must provide the escrow account balance according to the records received by Servicer; ix. If there is a suspense account, Servicer must provide a brief explanation of what a suspense account is, and Servicer must provide the suspense account balance; x. If Servicer is aware that there is a pending loss mitigation application or pending trial plan, Servicer must acknowledge that there is a pending application, that a review for a permanent payment solution is in process, and that Servicer will contact the borrower within 30 days of transfer; and xi. A notice that if there is a pending trial plan, the borrower must continue to make trial modification payments addressed to Servicer. d. For the 60 days before and after the date of the transfer of servicing of any mortgage loan, if the transferor servicer (rather than the transferee Servicer that should properly receive payment on the loan) received payment on or before the applicable due date (including any grace period allowed under the mortgage loan instruments), a payment may not be treated as late for any purpose. i. Servicer shall not charge or collect a late fee for any such payment. ii. Servicer must report any such payment as a timely made payment to credit reporting agencies, and Servicer shall not provide any adverse information about any such payment to credit reporting agencies. e. Servicer shall not commence, refer to, or proceed with foreclosure until Servicer has satisfied all requirements under paragraphs III.K.3.a and III.K.3.b.

Transfer of Servicing to Servicer. a. Servicer must accept and continue to process pending loss mitigation applications from the prior servicer. i. Servicer must process pending loss mitigation applications upon the same time frames that applied to the transferor servicer prior to the transfer, except in the following situations:following (a) If the transferor servicer received a loss mitigation application but had not yet sent the borrower a letter either confirming that the application is complete or identifying missing documents or information, Servicer must send such a letter within 10 days of the transfer date. (b) If the transferor transfer servicer received a complete loss mitigation application but had not yet completed its evaluation, Servicer must complete the loss mitigation evaluation within 30 days of the transfer date. ii. Servicer may not attempt to obtain from the borrower any missing information or documents that were previously submitted by the borrower to the transferor servicer, without first contacting the transferor servicer to attempt to obtain the missing information or documents. iii. If the transferor servicer denied the loss mitigation a loan modification application prior to the transfertransfer and the denial notice provides the borrower with the right to appeal the denial, Servicer must ensure that honor the borrower receives 14 days to appeal the denial deadline before taking any adverse action against the borrower. If there is a pending appeal at the time of the transfer, or if an appeal is made after the transfer date, the Servicer must make a determination within 30 days of the transfer date or within 30 days of the date the borrower made the appeal, whichever is later. If Servicer is unable to make a determination as to the appeal, Servicer must treat the borrower’s application as a pending complete application and evaluate it within 30 days of the transfer date or within 30 days as of the date the borrower made appeal was received by the appealtransferor servicer or Servicer, whichever is lateroccurs first, and evaluate the borrower for all loss mitigation options. iv. Where Servicer identifies documents or information indicating a loan file indicates that a loss mitigation application request was pending on a loan within 60 days of transfer, including where loan file data indicates that such an application was pending, transfer or where a borrower indicates the same, and Servicer lacks clear written evidence of a loss mitigation denial by the transferor prior servicer, Servicer shall take all reasonable steps to obtain documents that may not have been transferred or confirmation from the transferor prior servicer concerning of the status of any loss mitigation activity or review of a loss mitigation request and shall: (a) Where the transferor prior servicer’s review was not complete, complete the review of the borrower’s prior loss mitigation request, after notifying the borrower of any necessary information missing from such application, and afford the borrower an opportunity to have the loss mitigation request reviewed through the independent evaluation and appeal process under paragraphs III.F.6 IV.F.6 and III.GIV.G; or (b) Provide the borrower a written denial notice, in compliance with paragraph III.F.7IV.F.7, and if the denial is of a trial plan or loan modification, provide the borrower 14 days to request an appeal of a loan modification denial under paragraph III.G.IV.G. b. Servicer must honor trial and permanent loan modification agreements entered into by the prior servicer. i. If the transferor servicer extended a trial or permanent loan modification offer to the borrower and the borrower’s time period to accept or reject the offer has not expired as of the transfer date, Servicer must ensure that the borrower has had at least 14 days from the date of transfer to accept or reject the offer before taking any adverse action against the borroweroffer. ii. If Servicer does not have evidence of a loan modification offer or agreement from the transferring servicer, but the borrower provides a copy of a loan modification offer or agreement, and the borrower has complied in good faith with the terms of that offer or agreement, that shall be deemed evidence of a loan modification offer or agreement. A borrower making payments that conform to the payment terms of the offer shall be deemed to be the borrower’s good faith compliance with the terms of the offer or agreement. However, if Servicer reasonably suspects potential fraud on the part of the borrower or their authorized agent, it may perform additional due diligence to confirm the validity of the loan modification offer or agreement, which shall include, but is not limited to, reasonable diligence in contacting the prior servicer before agreeing to honor the offer or agreement. iii. Servicer must ensure that trial period payments, including those received by the prior servicer, are applied in accordance with the trial period plan. iv. Servicer must ensure that post-modification payments, including those received by the prior servicer, are applied in accordance with the modified loan documents. c. Within 15 days after the transfer, Servicer must send a written notice to the borrower that contains the following items: i. The effective date of transfer of the servicing; ii. The name, address, and a collect call or toll-free telephone number for an employee or department of the transferee servicer that can be contacted by the borrower to obtain answers to servicing transfer inquiries; iii. The name, address, and a collect call or toll-free telephone number for an employee or department of the transferor servicer that can be contacted by the borrower to answer inquiries relating to the transfer of servicing; iv. The date on which the transferor servicer will cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments. These dates shall either be the same or consecutive days; v. Whether the transfer will affect the terms or the continued availability of mortgage life or disability insurance, or any other type of optional insurance, and any action the borrower must take to maintain such coverage; vi. A statement that the servicing transfer does not affect any term or condition of the security instrument other than terms directly related to the servicing of such loan; vii. A statement as to whether the loan was current or delinquent at transfer according to the records received by Servicer, the The date for which the loan is due, due and the total amount of the unpaid principal balance; viii. If there is an escrow account, Servicer must provide the escrow account balance according to the records received by Servicer;; and ix. If there is a suspense account, Servicer must provide a brief explanation of what a suspense account is, and Servicer must provide the suspense account balance; x. If Servicer is aware that there is a pending loss mitigation application or pending trial planplan at the time of transfer, Servicer must acknowledge that there is a pending application, application and that a review for a permanent payment solution is in process. d. Within five days after delivery of the notice in paragraph IV.K.3.c (above), and Servicer shall provide to any borrower that Servicer will contact the borrower within is at least 30 days delinquent at the time of transfer; and xi. A transfer a notice indicating that if there is a pending trial plan, the borrower must continue loan was delinquent at time of transfer according to make trial modification payments addressed to the records received by Servicer. d. e. For the 60 days before and after beginning on the effective date of the transfer of servicing of any mortgage loan, if the transferor servicer (rather than the transferee Servicer that should properly receive payment on the loan) received payment on or before the applicable due date (including any grace period allowed under the mortgage loan instruments), a payment may not be treated as late for any purpose. i. Servicer shall not charge or collect a late fee for any such payment. ii. Servicer must report any such payment as a timely made payment to credit reporting agencies, and Servicer shall not provide any adverse information about any such payment to credit reporting agencies. e. f. Servicer shall not commence, refer to, or proceed with foreclosure until Servicer has satisfied all requirements under paragraphs III.K.3.a IV.K.3.a and III.K.3.bIV.K.3.b.