Traditional servicing options.

CFR · 2024-01-01 · US · Title 7

(a) (1) The borrower presently occupies the property; (2) The borrower is in default or facing imminent default for an involuntary reason. A borrower is “facing imminent default” if that borrower is current or less than 30 days past due on the mortgage obligation and is experiencing a significant reduction in income or some other hardship that will prevent him or her from making the next required payment on the mortgage during the month in which it is due. The borrower must be able to document the cause of the imminent default, which may include, but is not limited to, one or more of the following types of hardship: (i) A reduction in or loss of income that was supporting the mortgage loan; (ii) A change in household financial circumstances; (3) The borrower demonstrates a reasonable ability to support repayment of the debt in the future; (4) There are no adverse property conditions that inhibit the inhabitability or use of the property; and (5) The borrower has not received assistance due to the submission of false information by the borrower. (b) (1) (2) (3) (i) Loan modifications must be a fixed interest rate and cannot exceed the market interest rate at the time of modification. (ii) Loan modifications may capitalize all or a portion of the arrearage and/or reamortization of the balance due including foreclosure fees and costs, tax and insurance advances, and past due Agency annual fees imposed by the lender. Late charges and lender fees may not be capitalized. (iii) If n

official document · source cfr-2024 · id 7:§ 3555.303