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» VISIT US ONLINE @ DSNEWS.COM 63 borrower, servicers may utilize both auto dialer and manual calling techniques. Regardless of the techniques utilized, live "person-to- person" contact must be made with borrowers. If appropriate, borrowers must be promptly informed by the servicer of loss mitigation options that may be available. Additionally, all collections communications with borrowers (whether made verbally or in writing) must be prefaced with a "Mini-Miranda" statement that clearly informs them the call or action being made is an attempt to collect a debt and that any information obtained will be used for that purpose. LOSS MITIGATION Loss mitigation guidelines and standards established by the CFPB require servicers to evaluate the borrower's application for available loss mitigation options. ese guidelines also prescribe certain requirements servicers must meet prior to initiating any foreclosure actions. Although the CFPB has established guidelines and standards relating to loss mitigation procedures, servicers must remain cognizant of the fact that other governing investor rules and guidelines may already exist that may be more restrictive or conservative. For example, investors (such as GSEs) may require servicers to conduct expedited reviews and make a final decision within a specific timeframe. In maintaining CFPB compliance, servicers should consider looking holistically at all governing rules. Written Notice of Loss Mitigation Options: Servicers must provide borrowers with written notice of loss mitigation options by the 45th day of delinquency. Specific content of the 45-day written notice includes: A statement encouraging the borrower to contact the servicer; e servicer's telephone number for purposes of contacting or reaching responsible servicing personnel for providing continuity of contact; e servicer's mailing address; Brief examples of loss mitigation options available from the servicer; A statement regarding how to obtain more information pertaining to loss mitigation options available from the servicer; and Reference to the bureau of HUD website listing homeownership counselors and related organizations. Servicers are not required to provide the written notice more than once during any 180- day period. Continuity of Contact: Borrowers must be provided with direct, easy, and continuous access to assigned servicing personnel (commonly referred to as a single point of contact, or SPOC) who can assist with loan issues. Assigned servicing personnel must be accessible via telephone and able to provide borrowers with loss mitigation assistance and have access to all borrower data, including a complete record of the borrower's payment history and all written information provided in connection with the loss mitigation application. Assigned servicing personnel must remain available to the borrower until a minimum of two consecutive mortgage payments are made under the terms of a permanent loss mitigation agreement, without incurring a late charge. e continuity of contact standard details the servicer's requirement to assign personnel to a borrower at the time it provides the written notice required under the early intervention standard, but no later than by the 45th day of delinquency. Loss Mitigation Application: e CFPB has defined a loss mitigation application as any oral or written request submitted by a borrower that is accompanied by information required by a servicer for the evaluation of loss mitigation options. Once an application is received, CFPB servicing standards prescribe detailed requirements, including the need to send a CFPB Director, Richard Cordray COVER STORY INDUSTRY INSIGHT INDUSTRY INSIGHT

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