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Mortgage Servicing and Loan Modifications: SOUTH CAROLINA

S.C. Code Ann. §§ 29-3-310, 29-3-320

Requirements: Upon full payment and delivery of request, holder is within three months to provide mortgagor proof of satisfaction or is to record release with option of charging mortgagor up to $25 recording fee. Liability for noncompliance: damages of the lesser of one half of the debt amount or $25,000, actual damages, costs, and attorney fees. Successful suit also will result in court order to have satisfaction entered by court officer.

Mortgage Servicing and Loan Modifications: SOUTH DAKOTA

S.D. Codified Laws § 44-3-8

Requirements: Holder shall deliver satisfaction within thirty days of full payment. Immediately upon payment or thereafter, where mortgagor delivers written request, holder obliged to deliver within ten days of receipt of the written request a release sufficient to cancel lien. Upon noncompliance after the ten days, holder is liable for actual damages, attorney fees, and an additional $100.

Mortgage Servicing and Loan Modifications: TENNESSEE

Tenn. Code Ann. § 66-25-102

Requirements: Holder is liable for $100 after forty-five days from written request; upon noncompliance thirty days after second request, $1000; if action instituted to collect forfeitures, holder liable for expenses, costs, and attorney fees.

Mortgage Servicing and Loan Modifications: UTAH

Utah Code Ann. § 57-1-38 (West)

Requirements: Servicer or lender failing to release security interest within ninety days of final payment is liable for the greater of $1000 or treble the actual damages, plus expenses, costs, and attorney fees.

Mortgage Servicing and Loan Modifications: VERMONT

Vt. Stat. Ann. tit. 27, § 464

Requirements: Holder and any servicer must, within thirty days of payment, execute and deliver valid discharge; holder’s or any authorized servicer’s liability in civil action for noncompliance: $25 per day up to $5000, consequential and punitive damages, costs, and attorney fees. See also tit. 8, § 2232a(e).

Mortgage Servicing and Loan Modifications: VIRGIN ISLANDS

V.I. Code Ann. tit. 28, § 128

Requirements: If no discharge within ten days of written request, mortgagee, representative, or assignee is liable for $100 damages, and also for actual damages occasioned by such neglect or refusal, to be recovered in an action.

Mortgage Servicing and Loan Modifications: WASHINGTON

Wash. Rev. Code § 61.16.030

Requirements: Upon failure to acknowledge satisfaction as provided by statute sixty days from the date of request, the mortgagee shall forfeit and pay to the mortgagor damages and attorney fees; court in action for damages shall issue an order directing the immediate recording of discharge.

Mortgage Servicing and Loan Modifications: WEST VIRGINIA

W. Va. Code §§ 31-17-9(c), 38-12-1(a)

Requirements: Release shall be executed and furnished to the debtor within thirty days after the debt has been satisfied. Upon noncompliance, borrower may seek court order for release, with holder liable for costs and attorney fees. § 38-12-10.

Mortgage Servicing and Loan Modifications: WYOMING

Wyo. Stat. Ann. § 34-1-132

Requirements: Mortgagee or holders, including servicing agents, within thirty days of receipt of written request for discharge, shall execute release. Liability for noncompliance: actual damages plus special damages of 1/10 of 1% of principal, not to exceed $100 per day after thirty-day period. Mortgagee of record liable for same damages if failure to provide name and address of current holder within sixty days of the written request.

Mortgage Servicing and Loan Modifications: 12 U.S.C. § 1715u. Authority to assist mortgagors in default

(a) Loss mitigation. Upon default or imminent default, as defined by the Secretary of any mortgage insured under this subchapter, mortgagees shall engage in loss mitigation actions for the purpose of providing an alternative to foreclosure (including but not limited to actions such as special forbearance, loan modification, preforeclosure sale, support for borrower housing counseling, subordinate lien resolution, borrower incentives, and deeds in lieu of foreclosure, as required, but not including assignment of mortgages to the Secretary under section

Mortgage Servicing and Loan Modifications: 24 C.F.R. § 203.500 Mortgage servicing generally

This subpart identifies servicing practices of lending institutions that HUD considers acceptable for mortgages insured by HUD. Failure to comply with this subpart shall not be a basis for denial of insurance benefits, but failure to comply will be cause for imposition of a civil money penalty, including a penalty under § 30.35(c)(2), or withdrawal of HUD’s approval of a mortgagee. It is the intent of the Department that no mortgagee shall commence foreclosure or acquire title to a property until the requirements of this subpart have been followed.

Mortgage Servicing and Loan Modifications: 24 C.F.R. § 203.602 Delinquency notice to mortgagor

The mortgagee shall give notice to each mortgagor in default on a form supplied by the Secretary or, if the mortgagee wishes to use its own form, on a form approved by the Secretary, no later than the end of the second month of any delinquency in payments under the mortgage. If an account is reinstated and again becomes delinquent, the delinquency notice shall be sent to the mortgagor again, except that the mortgagee is not required to send a second delinquency notice to the same mortgagor more often than once each six months.

Mortgage Servicing and Loan Modifications: 24 C.F.R. § 203.605 Loss mitigation performance

(a) Duty to mitigate. Before four full monthly installments due on the mortgage have become unpaid, the mortgagee shall evaluate on a monthly basis all of the loss mitigation techniques provided at § 203.501 to determine which is appropriate. Based upon such evaluations, the mortgagee shall take the appropriate loss mitigation action. Documentation must be maintained for the initial and all subsequent evaluations and resulting loss mitigation actions.

Mortgage Servicing and Loan Modifications: 24 C.F.R. § 203.606 Pre-foreclosure review

(a) Before initiating foreclosure, the mortgagee must ensure that all servicing requirements of this subpart have been met. The mortgagee may not commence foreclosure for a monetary default unless at least three full monthly installments due under the mortgage are unpaid after application of any partial payments that may have been accepted but not yet applied to the mortgage account.

Mortgage Servicing and Loan Modifications: 24 C.F.R. § 203.608 Reinstatement

The mortgagee shall permit reinstatement of a mortgage, even after the institution of foreclosure proceedings, if the mortgagor tenders in a lump sum all amounts required to bring the account current, including foreclosure costs and reasonable attorney’s fees and expenses properly associated with the foreclosure action, unless: (a) The mortgagee has accepted reinstatement after the institution of foreclosure proceedings within two years immediately preceding the commencement of the current foreclosure action, (b) reinstatement will preclude foreclosure following a subs

Mortgage Servicing and Loan Modifications: 24 C.F.R. § 203.614 Special forbearance

If the mortgagee finds that a default is due to circumstances beyond the mortgagor’s control, as defined by HUD, the mortgagee may grant special forbearance relief to the mortgagor in accordance with the conditions prescribed by HUD.

[60 Fed. Reg. 57,678 (Nov. 16, 1995); 61 Fed. Reg. 35,020 (July 3, 1996); 62 Fed. Reg. 60,129 (Nov. 6, 1997)]

Mortgage Servicing and Loan Modifications: 24 C.F.R. § 203.616 Mortgage modification

The mortgagee may modify a mortgage for the purpose of changing the amortization provisions by recasting the total unpaid amount due for a term not exceeding 480 months. The mortgagee must notify HUD of such modification in a format prescribed by HUD within 30 days of the execution of the modification agreement.

[61 Fed. Reg. 35,020 (July 3, 1996); 62 Fed. Reg. 60,130 (Nov. 6, 1997)]