Introduction to Mortgage Servicing Examinations Training

Internal Use Only

Borrowers in Bankruptcy • 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 is exempt from the live contact requirement & early intervention written notice requirement if no loss mitigation option is available • Servicer is also exempt from providing the early intervention written notice if any borrower on the mortgage loan has provided a notification pursuant to FDCPA § 805(c) (15 U.S.C. 1692c(c)) with respect to their mortgage loan

Internal Use Only

Borrowers in Bankruptcy A servicer must resume compliance with live contact & early intervention written notice requirements after the next payment due date that follows the earliest of the following events: • Bankruptcy case is dismissed; • Bankruptcy case is closed; and • Borrower reaffirms personal liability for the mortgage loan With a mortgage loan for which borrower has discharged personal liability pursuant to 11 U.S.C. 727, 1141, 1228, or 1328, a servicer: is not required to resume compliance with live contact requirement but must resume compliance with early intervention written notice requirement if borrower has made any partial or periodic payment on loan after commencement of borrower's bankruptcy case