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Mortgage Servicing and Loan Modifications: Introduction

This appendix contains forms and other documents that may be referred to or used by attorneys or housing advocates seeking to assist borrowers in default on their mortgage, including sample requests for information and notices of error under RESPA. This appendix also includes samples of common mortgage-related documents.

Mortgage Servicing and Loan Modifications: E.1.4 Fannie Mae Loan Modification Agreement

The forms included here are sample loan modification agreements used by the industry, including Fannie Mae and Freddie Mac. Although these are copies of forms that are currently used, the industry is constantly revising and updating these documents. Advocates should check Fannie Mae and Freddie Mac’s servicing guidelines or other industry publications for the latest versions.

Mortgage Servicing and Loan Modifications: E.2.1 Introduction

The following are sample “requests for information” and “notices of error.” The Real Estate Settlement Procedures Act (RESPA), 12 U.S.C. § 2605(e), provides a procedure and a remedy for borrowers to obtain information from a loan servicer about their mortgage loan and to dispute account errors, by sending a “qualified written request.” RESPA regulations effective on January 10, 2014, refer to qualified written requests as a “request for information” and a “notice of error.” Reg. X, 12 C.F.R. §§ 1024.35, 1024.36.

Mortgage Servicing and Loan Modifications: E.2.4 Sample Notice of Error and Request for Information Under RESPA for a Client Who Has Filed for Bankruptcy

Appropriate alterations based on your client’s situation must be made before sending the following sample notice and request. Only those specific request items that are applicable to your client and needed to assist in representing the client should be included.

[date]

[mortgage co. or servicer]

RE: [debtor]

[address]

[SSN]

[bankr. no.]

[file date]

Mortgage Servicing and Loan Modifications: E.2.5 Sample Request for Information About a Loss Mitigation Application

The sample form request for information below can be used to seek information about a borrower’s request for loss mitigation. Under the Regulation X provision implementing 12 U.S.C. § 2605(e) of the Real Estate Settlement Procedures Act, effective January 10, 2014, a written inquiry that requests information with respect to the borrower’s mortgage loan is referred to as “request for information.”6 Appropriate alterations based on your client’s situation must be made before sending the following sample notice and request.

Mortgage Servicing and Loan Modifications: E.2.7 Sample Request for Information Under RESPA to Obtain Identity of Mortgage Owner

This sample form written request can be used to obtain from a mortgage servicer information about the owner of the borrower’s mortgage. This information is particularly useful in determining the proper party in foreclosure proceedings, for exercising rescission rights, for naming the proper party in bankruptcy lien strip off and claim objection proceedings, and for effectuating service of process on the mortgage owner in litigation matters.

[date]

[mortgage servicer]

Mortgage Servicing and Loan Modifications: E.2.8 Limited Request for Information from Successor in Interest

This form can be used by a successor in interest to ask the servicer to provide the description of any documents needed to confirm successor status.13 Because of difficulties getting servicers to communicate with third parties authorized by successors in interest, especially before their status is confirmed, it may be best for the successor to send this request directly (rather than the attorney send it).14 Appropriate alterations based on your client’s situation must be made before sending the samp

Consumer Bankruptcy Law and Practice: Bibliography

Benjamin C. Ackerly, Tenants by the Entirety Property and the Bankruptcy Reform Act, 21 Wm. & Mary L. Rev. 701 (1980).

Alan M. Ahart, Whether to Grant a Hardship Discharge in Chapter 13, 87 Am. Bankr. L.J. 559 (2013).

Alan M. Ahart, The Liability of Property Exempted in Bankruptcy for Pre-Petition Domestic Support Obligations After BAPCPA: Debtors Beware, 81 Am. Bankr. L.J. 233 (2007).

Alan M. Ahart, The Inefficacy of the New Eviction Exceptions to the Automatic Stay, 80 Am. Bankr. L.J. 125 (2006).

Mortgage Servicing and Loan Modifications: G.1 Generalized Glossary

Compliments of AFFIL partners: Center for Responsible Lending and the National Consumer Law Center. Italicized words are separately defined within this subsection.

Ability to Repay. A review before loan origination by a lender of the borrower’s ability to repay the loan based on underwriting standards, as required by the Truth in Lending Act and state law for certain loans.

Mortgage Servicing and Loan Modifications: G.2 Specialized Glossary of Mortgage Servicing Terms

The following is a glossary of terms related to the servicing of consumer mortgages. Advocates may find this glossary helpful in understanding mortgage escrow statements, loan histories, and other client account documents obtained through discovery or in response to a qualified written request under the Real Estate Settlement Procedures Act (RESPA). It includes abbreviations that commonly appear on account statements. However, these account documents often contain numerical codes and other cryptic notations used by servicers to designate particular account transactions.

Mortgage Servicing and Loan Modifications: E.3.4 Sample Change Rate Notice for ARM

This is a sample Change Rate Notice for an adjustable rate mortgage.

[mortgage company]

[date]

Loan: [number]

Dear: [name]

Effective with your [date] payment the interest rate on your mortgage loan will be adjusted, as required by your Mortgage Note. Please refer to your Note for details on how we are required to compute your new rate, or call our Customer Service Department at 1-800-555-5555.