Sec. 5. Notice to borrowers of loss mitigation status and decisions
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Subsection
(a)of section 204 of the National Housing Act ( 12 U.S.C. 1710(a) ), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new paragraph: The Secretary shall require that before any acceleration of the indebtedness due under a mortgage, the servicer for the mortgage shall provide written notice to the mortgagor that includes— a summary explaining how the servicer applied the loss mitigation option priority analysis established by the Secretary, including the loss mitigation review waterfall under section III.A.2.j.iii of the Secretary’s Handbook 4000.1 or any successor provision, and setting forth the actual information entered in applying such analysis; with respect to any mortgage for which the servicer did not conduct the analysis referred to in clause
(i)because the servicer determined that the mortgagor did not express any interest in loss mitigation or provide appropriate documents— a statement of such determination; a description of the actions that the servicer took to solicit the borrower for loss mitigation review and obtain appropriate documents; and a statement of the dates that the servicer took such actions; and a statement setting forth the results of the servicers’ monthly loss mitigation evaluations for the mortgage required under section 203.605(a) of the Secretary’s regulations (24 C.F.R. 203.605(a)) or any successor provision; with respect to any loss mitigation action for which the mortgagor was determined to be ineligible, an explanation of, and documentation showing, why the mortgagor was determined to be ineligible; a statement informing the borrower that, upon the request of the borrower, the Secretary will provide the borrower with all loss mitigation evaluation documentation required by the Secretary with respect to the mortgage, including monthly evaluations referred to in clause (iii); and information describing the procedure under section 543(a) for registering complaints regarding loss mitigation and the procedure under section 543(c) for appealing a servicer’s decisions regarding loss mitigation actions. Such notice shall contain references to the applicable provisions of applicable handbook of the Secretary regarding ongoing loss mitigation reviews and standards for such reviews and shall identify how such provisions may be accessed on a publicly accessible website of the Department. .
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