Sec. 5. Notice to borrowers of loss mitigation status and decisions
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Section 204(a) of the National Housing Act ( 12 U.S.C. 1710(a) ), as amended by section 2, is amended by adding at the end the following: 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 FHA Single Family Housing Policy Handbook 4000.1, or any successor provision, and setting forth the actual information entered in applying the analysis; if the servicer did not conduct the analysis described 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 that 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 the actions described in subclause (II); a statement setting forth the results of the monthly loss mitigation evaluations of the servicer for the mortgage required under section 203.605(a) of title 24, Code of Federal Regulations, or any successor regulation; 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 shall provide the borrower with all loss mitigation evaluation documentation required by the Secretary with respect to the mortgage, including the monthly evaluations described 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 the decision of a servicer regarding loss mitigation actions. The notice required under subparagraph
(A)shall— contain references to the applicable provisions of the applicable handbook of the Department of Housing and Urban Development regarding ongoing loss mitigation reviews and the standards for those reviews; and identify how the provisions described in clause
(i)may be accessed on a publicly accessible website of the Department of Housing and Urban Development. .
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Sec. 5
Notice to borrowers of loss mitigation status and decisions
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