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The following procedures are for complying with the Fair Debt Collection Practices Act (FDCPA).

During the collection/litigation process it is your responsibility to understand the provisions of the FDCPA. The act was passed by Congress to insure that consumers are treated fairly by debt collectors. The law covers debts collected by a third-party collection agency and attorneys who collect outstanding debts. Although we are excluded from the provisions of the FDCPA because the bank collects its own debt, we comply with the Act as a Best Business practice.

The following provisions and laws must be met and complied with by all collectors and litigators:

1. There will be no use of abusive, deceptive, and unfair collection practices such as:
   • Contacting clients at an inconvenient time 
     • No calls before 8 a.m. or after 9 p.m.
   • No calls to clients' workplace if we are told they are not allowed to get calls there
   • Threatening lawsuits
   • Misrepresenting who we are
   • Making annoying or unnecessary telephone calls (for example: calling multiple times in a day).
2. Even thought we are excluded from the provisions of FDCPA, the State of Florida has laws that do include specific actions that are prohibited during the collection/litigation process. These actions prohibited by law include:
   • Impersonating a law enforcement office or a representative of a government agency
   • Trying to collect, knowingly collecting or claiming the right to a collection fee, attorney fee, court cost or expense unless such charges are justly due and legally chargeable to the debtor
   • Threatening to disclose or disclosing information affecting the debtor's reputation for creditworthiness if believed that this information is false
   • Threatening to disclose or communicate the details of a past due debt to the debtor's employer before obtaining a final judgement (unless debtor has authorized communication for a wage assignment to pay their debt)
   • Disclosing or threatening to disclose details of a debt that you know to have been disputed and not disclosing it
   • Attempting to contact the debtor or any member of their family or household with such frequency or at unusual hours that would reasonably be expected to harass or abuse
   • Threatening action that in the usual course of business that you do not take
   • Claiming to enforce a right with the knowledge that it does not exist
   • Using a communication that falsely simulates a legal or judicial process, or gives the appearance of being approved by a government agency or attorney

I.    EARLY INTERVENTION WITH DELINQUENT BORROWER PROCEDURES 

This Section applies to Borrowers who are in bankruptcy and who have not invoked the Fair Debt Credit Practices Act (FDCPA) cease communication protection unless specified. The rules apply to federal related mortgage loans as defined in §1024.5(b), specifically these rule do not apply to:
 

• HELOCs and open-end lines of credits;
• Small servicers (servicing 5,000 loans or are servicing for 3rd party
• Reverse mortgage transactions
• Any loan that is secured by a property that is not the borrower’s principal residence

All Collectors will be made aware of the Early Intervention Process and the Primary Contact for Loss Mitigation. The Loss Mitigation/Foreclosure Specialist will be the primary contact for the Loss Mitigation Process. All Collectors will follow the Early Intervention “Live Contact” steps listed below.
 

1. All loans that are 1st and 2nd real estate mortgages on primary residences, to include Exempt Officer loans, that are in a past due status must have attempted to establish live contact within 36 days of delinquency through reasonable efforts. 
   • For example: Assume a borrower’s mortgage loan requires a borrower to make periodic payments of principal, interest, and escrow by the first of each month. The borrower does not make the payment that is due on January 1. If you establish a live contact with the delinquent borrower on January 31st, you are in compliance with the early intervention rule because live contact was established within 36 days of the date borrower’s delinquency began. Please note if the borrowers fail to make payment on February 1, you are required to establish or make good faith efforts to establish live contact with the delinquent borrower within 36 days of February 1, even though you previously established live contact on January 31st.
      
2. Established Live Contact is defined as live contact with the borrower by telephoning or conducting an in person meeting with the borrower. 
   • Leaving a recorded message is not a substitute for live contact unless good faith efforts to establish live contact have been made.
   • Good faith efforts to establish live contact consist of reasonable steps under the circumstances to reach a borrower and may include telephoning the borrower on more than one occasion or sending written or electronic communication encouraging the borrower to establish live contact with you.
      
3. If all reasonable efforts have been made to speak with the borrower(s) and it is fully documented to show this in the collection message section of Silverlake, then the live contact requirement has been met.
    
4. When you make live contact with the borrower, you must inform the borrower that loss mitigation options may be available, if appropriate, generally for situations where the borrower’s change of status is long term. The following options may be available:
   • Modifying your loan terms
   • Payment forbearance
   • Deed in lieu of foreclosure
   • Short sale
   • You may provide the following information: housing counseling is available through HUD at 1-800-569-4287.
      
5. Contact may be made with a duly verified personal representative. You may set up reasonable procedures whether a person that claims to be the borrower’s agent has the authority to act on the borrower’s behalf. 
   • For example: You can require the agent to provide documentation from the borrower stating that the purported agent is acting on the borrower’s behalf such as having a Power of Authority (POA).
      

II. WRITTEN LOSS MITIGATION STATEMENT (45-day letter) PROCEDURES 

1. Ensure borrower is not in bankruptcy. If they are in bankruptcy, contact Loan Servicing to stop Jack Henry Silverlake from automatically generating notices to the borrower and see the bankruptcy procedures set out below in Section III.
    
2. Jack Henry automatically generates and mails the written notice about loss mitigation by the 40th day of delinquency. Jack Henry is programmed to provide the notice only once during any 180-day period. Home Equity Lines of Credit (HELOCs) are excluded from this requirement.
    
3. The written notice includes the following:
   • ✪ A statement encouraging the borrower to contact the bank.
   • ✪ The telephone number for the personnel assigned to the borrower.
   • ✪ The bank’s mailing address.
   • ✪ If applicable, a statement providing a brief description of examples of loss mitigation options that may be available. This could be a generic list of typically offered loss mitigation options that includes a warning that not all borrowers may qualify for the listed options.
   • ✪ If and as applicable, either application instructions or a statement informing the borrower how to obtain more information about loss mitigation options.
   • ✪ The website to access either the Bureau list or the HUD list of homeownership counselors or counseling organizations.
   • ✪ The HUD toll-free telephone number to access homeownership counselors or counseling organizations.
   • ✪ Additional information that the bank determines may be helpful.

III.    BANKRUPTCY PROCEDURES

1. Follow normal departmental procedures to determine whether borrower is in bankruptcy. For debtors in bankruptcy:
   • Live contact: Do not observe early intervention live contact requirements.
   • Limited written contact: Not required if no loss mitigation option is available.
   • Modified written notice: Determine whether any loss mitigation(s) is(are) available.
     • ✪ If yes, prepare and mail modified written notice.
     • ✪ Deadlines:
       • If borrower is delinquent when bankruptcy is filed: the 45th day after the borrower files.
       • If borrower is not delinquent when bankruptcy is filed but subsequently becomes delinquent while in bankruptcy: the 45th day of the borrower’s delinquency.
     • ✪ Required even if a 45-day notice has been provided in the last 180 days.
     • ✪ Contents: May not contain a request for payment.
     • ✪ Frequency: 1 notice per bankruptcy case.
2. Procedures once borrower is no longer in bankruptcy:
   • ✪ Resume normal compliance after the next payment due date that follows the earliest of the following:
     • The case is dismissed;
     • The case is closed; or
     • The borrower reaffirms the debt.
       • Contact Loan Servicing to have the Jack Henry Silverlake payment notice generated.
   • ✪ If debt has been discharged in bankruptcy:
     • Early Intervention Live contact requirement not required.
     • Compliance with written early intervention requirements only if borrower has made any partial or periodic payment on the mortgage loan after bankruptcy case filed.

IV.    CONTINUITY OF CONTACT PROCEDURES

1. The Loss Mitigation/Foreclosure Specialist will be the primary contact for any borrower that requests assistance in the Loss Mitigation Process to try and prevent the loss of their primary residence.
    
2. Contact will be maintained from date of first delinquency until the borrower made, without incurring a late charge, 2 consecutive conforming mortgage payments under the terms of a permanent loss mitigation agreement or the mortgage.
    
3. General responsibilities:
   • ✪ Respond to borrower inquiries and assist in all phases of the process.
   • ✪ Promptly retrieve borrower’s payment history and all written information the borrower provides in connection with the application and distribute it as necessary.
   • ✪ Provide a timely live response to borrowers who call and have to leave a message when they cannot reach a live person.
4. Specific duties:
   • ✪ Provide borrowers with accurate information about:
     • The specific available loss mitigation options
     • Procedures for submitting an application, getting it evaluated, and the appeals process
     • The borrower’s application status
     • Circumstances under which a foreclosure referral will be made
     • Relevant deadlines
     • Procedures for error resolution or information request
   • ✪ Retrieve information in a timely manner, including:
     • The borrower’s complete payment history
     • All borrowers provided written information

V.    LOSS MITIGATION PROCEDURES: Receipt of application

1. The Loss Mitigation/Foreclosure Specialist will provide to all borrowers the Loss Mitigation application upon request.
    
2. Applications are not required to be returned in a specific time period.
    
3. Until an application, complete or incomplete, is received, all collections efforts will continue as normal.
    
4. If at any time the application is received the Loss Mitigation/Foreclosure Specialist will stop all collections/foreclosure actions pending review and respond to the borrower(s).
    
5. For any loss mitigation application received 45 days or more before a scheduled foreclosure sale (or at any time before a foreclosure sale is scheduled). The Loss Mitigation/Foreclosure Specialist will refer the Loss Mitigation Application to the Department (Collection) Manager to review to see if the application is complete, meaning the bank has all information needed (from the borrower) to evaluate the borrower for all available loss mitigation options while observing the following procedures:
   • ✪ Provide a written notice to the borrower within 5 days with the following contents, depending on whether the application is complete or incomplete:
     • Complete application:
       • Acknowledgement that the application has been received.
       • A statement that the bank has determined the application is complete and on what date it was complete.
       •  A statement that the evaluation should be complete within 30 days.
       • A statement that the borrower is entitled to certain foreclosure protections due to submitting the application (as applicable):
         • If formal foreclosure has not been initiated: that the bank cannot initiate foreclosure.
         • If formal foreclosure has been initiated: that the bank cannot proceed with foreclosure.
       • A statement that the borrower should consider contacting other lienholders/servicers on the same property to discuss available loss mitigation options.
     • Incomplete application:
       • Acknowledgement that the application has been received.
       • A statement that the bank has determined the application is not complete.
       • A specification of the additional documents/information necessary to complete the application.
       • A reasonable deadline for the borrower to provide the documents/information, generally 30 days after mailing the acknowledgment, but never later than the date of one of the following milestones (never less than 7 days):
         • The date by which any document or information submitted by a borrower will be considered stale or invalid.
         • The 120th day of the borrower's delinquency.
         • 90 days before a foreclosure sale.
         • 38 days before a foreclosure sale.
       • A statement that the borrower should consider contacting other lienholders/servicers on the same property to discuss available loss mitigation options.
   • ✪ Additional receipt acknowledgement. Once an incomplete application becomes complete, send another acknowledgment.
     • Not required if:
       • Original application was complete, no new information has been requested, and the correct acknowledgement was provided at that time.
       • A determination has been made and the borrower has been provided with a disposition notice (see below).
       • Application was not complete or facially complete at least 37 days before any scheduled foreclosure sale.
     • Contents:
       • All statements included in an original complete application notice.
       • Date application became complete.
       • Statement that the evaluation is expected to be complete within 30 days.
       • Statement that the borrower is entitled to certain foreclosure protections because the bank has received the complete application. One of the following statements, as applicable:
         • If foreclosure has not been formally initiated, that it cannot be commenced or initiated before evaluating the borrower’s complete application
         • If foreclosure has been formally initiated, that a foreclosure sale cannot be conducted before evaluating the borrower’s complete application
       • Statement that the bank may need additional information at a later date, and if that is the case, (1) the borrower will be notified and given a reasonable opportunity to submit it, (2) the evaluation process may take longer, and (3) the foreclosure protections could end if the additional information is not provided.
       • Statement that the borrower may be entitled to additional protections under state or federal law.
          
6. The Loss Mitigation/Foreclosure Specialist and /or Collection Manager must exercise reasonable diligence (for example: follow-up phone calls, advice) to make an incomplete application complete, depending on circumstances.
    
7. When an application is received and during the process of review and decision, no late fees or negative reporting to credit agencies can happen. 
    
8. The Loss Mitigation/Foreclosure Specialist and/or Collection Manager will be responsible for notifying Loan Servicing of any error request received so that Loan Servicing can take the necessary actions to ensure that no late fees or negative credit is reported on the borrower(s) credit history.
    
9. Facially complete applications. A facially complete application is an application that appears complete on its face but later requires additional information.
   • ✪ If additional information or corrections to a previously submitted document is required to complete the application, the bank must promptly request it.
   • ✪ The borrower must be provided a reasonable amount of time to provide the documents and information requested.
   • ✪ Foreclosure may not be initiated or continued.
   • ✪ If the borrower provides the corrected documents or additional information, the application is considered complete as of the date it was actually complete for the purpose of evaluation provisions, including that it must be evaluated within 30 days of completion.

VI.    LOSS MITIGATION PROCEDURES: Complete application
 

1. Collections Manager (or designee) will review all applications.
    
2. All Loss Mitigation options for which the borrower may qualify should be considered, not just specific options applied for.
    
3. Bank may select its own criteria for determining eligibility as set in procedures for Consumer Underwriting and Fair Lending.
    
4. Notice of decision must be mailed within 30 days of receiving complete application.
    
5. Notice contents:
   • ✪ Which options, if any, will be offered.
   • ✪ Acceptance/rejection:
     • Deadline:
       • Applications received more than 90 days before any scheduled foreclosure sale: deadline must be at least 14-days after notice.
       • Applications received less than 90 days but more than 37 before any scheduled foreclosure sale: deadline must be at least 7-days after notice.
       • If no response by deadline, offer may be deemed rejected, with the following exceptions:
       • If the borrower does not satisfy all requirements for accepting an option but does submit plan-required payments, borrower must be given a reasonable period to fulfill any remaining requirements.
       • If applicable, if a borrower timely appeals, the deadline for acceptance is extended for 14 days after notice concerning appeal was resolved.
   • ✪ If any option denied, the bank must provide, for each option that was denied:
     • Specific reasons for denial.
     • If denial based on a net present value calculation: include in the notice the specific inputs you used in the calculation
     • Information on the appeals process and how to apply.

VII.    LOSS MITIGATION PROCEDURES: Information not in borrower’s control
 

1. Application considered complete when a borrower provides all information required from the borrower, even if additional information that is not in the borrower’s control is required. 
   • For example: If you require a borrower’s credit report for a loss mitigation evaluation, a loss mitigation application is considered complete if the borrower has submitted all the required information without regard to whether you have obtained credit report you requested from the consumer reporting agency.
      
2. The bank is obligated to exercise reasonable diligence with respect to obtaining documents or information not in the borrower’s control. At a minimum, the bank must request the documents or information from the appropriate party:
   • ✪ Promptly upon determining the necessity
   • ✪ By a date that will allow the evaluation to be completed within 30 days of receiving the application, to the extent practicable
      
3. Generally, the bank is prohibited from denying complete loss mitigation applications solely because it lacks the required documents or information not in the borrower’s control. However, denial is permissible if the following conditions are met:
   • ✪ Reasonable diligence was exercised to obtain required documents or information.
   • ✪ The bank must have been unable to obtain such documents or information for a significant period of time following the 30-day review period.
   • ✪ Without the missing documentation, the bank is unable to determine which loss mitigation options, if any, will be offered.
      
4. Written notice: If required documents have not been received, written notice to the borrower is required.
   • ✪ Contents:
     • A statement that the materials have not been received.
     • A statement that the materials are necessary to determine what loss mitigation options, if any, will be offered.
     • A specification of the specific documents or information that have not been received.
     • A statement that such materials have been requested from the appropriate third- party.
     • A statement informing the borrower that the evaluation will be completed promptly upon receiving the documents or information.
        
5. Denial notice (Adverse Action Notice) required. If the application is later denied because of the missing information 
   • ✪ Contents:
     • ✪ The bank’s determination, of which loss mitigation options, if any, will be offered.
     • ✪ The specific reasons for denial of each denied option.
     • ✪ A copy of the missing documents notice.

VIII.    LOSS MITIGATION PROCEDURES: Evaluation of incomplete application

1. General rule: Prohibited to dispose of (evaluate) an incomplete application.
    
2. Exception: Disposal/decision permitted under these conditions:
   • ✪ Application incomplete after due diligence.
     • If reasonable diligence to complete the application is exercised, yet it remains incomplete for a significant period of time without further progress by the borrower to complete it, the bank, in its discretion, may evaluate the incomplete application and offer the borrower a loss mitigation option for which the borrower qualifies.
     • Not considered an evaluation of a complete loss mitigation application for purposes of determining whether a complete application is duplicative.
     • A significant period of time under the circumstances may include consideration of the timing of the foreclosure process.
   • ✪ Offer not based on borrower-provided information.
     • Bank permitted to offer a Loss Mitigation option, even if the borrower has not submitted an application or has submitted an incomplete application, if the loss mitigation option is not based on any evaluation of information submitted by the borrower in connection with the application.
     • Example: If the bank offers a trial loan modification to all 150-day delinquent borrowers without an application or consideration of any information the borrower provides, observance procedures is not required.
   • ✪ Short-term payment forbearance program or a short-term repayment plan.
     • Payment forbearance:
           A short-term payment forbearance program is when the
       • Borrower is allowed to forgo making certain payments or portions of payments for a period of time of no more than six months.
       • Considered “short-term” regardless of the amount of time allowed to make up the missing payments.
     • Short-term repayment plan:
       • Borrower is allowed to repay all past due payments, of no more than 3 months, over a specified period of time, of no more than 6 months, to bring the mortgage loan account current.
       • The bank may offer a repayment plan that exceeds the parameters, but not without obtaining a complete loss mitigation application and evaluating the borrower for all available options.
   • ✪ Short-term payment forbearance program may be employed with a short-term repayment plan.
   • ✪ Short-term loss mitigation written notice.
   • ✪ Promptly (within 5 business days) after offering the borrower a short term payment or forbearance program, bank to provide written notice that contains the following disclosures:
     • The payment terms and duration of the plan or program, including the amount and date of each payment and whether the mortgage will be current at the end of the plan or program.
     • If payments are estimates because amounts may change due to escrow or other changes:
       • A statement that those payment amounts are estimates.
       • A statement of the general reason the payment amounts may change (for example: an interest rate may increase because it is tied to an index, or an escrow account computation year will end during the program or plan).
     • Other required notices:
       • A statement that the offer was based on an evaluation of an incomplete application and other loss mitigation options may be available.
       • A statement that the borrower has the option to submit a complete loss mitigation application to receive an evaluation for all loss mitigation options available to the borrower regardless of whether the borrower accepts the offered option.
   • ✪ Other requirements:
     • While the borrower is performing according to the terms of the short-term program, foreclosure may not be initiated, or, if already initiated, the sale cannot proceed.
     • If the borrower fails to comply with the plan or requests further assistance, the bank must immediately resume exercising reasonable diligence to obtain a complete application and all LOSS MITIGATION requirements apply.
     • Bank permitted to suspend efforts to obtain additional material while a borrower is in compliance with a short-term payment forbearance/repayment, but only if:
       • The borrower does not request further assistance.
       • Does not notify the bank that they wish to complete the application and proceed with a full loss mitigation evaluation.
     • If, near the end of the program, the borrower remains delinquent, the bank must contact the borrower to determine if the borrower wishes to complete the application and proceed with a full loss mitigation evaluation.

IX.    LOSS MITIGATION PROCEDURES: Appeals

1. Appeal procedures required when:
   • ✪ Complete or facially complete application is received:
     • Prior to formal initiation of foreclosure
     • 90 days or more before a scheduled foreclosure sale
   • ✪ Limited to denial of loan modification programs
     • Not required for other LOSS MITIGATION programs
   • ✪ Substantive requirements:
     • Independent evaluation, meaning personnel who evaluated the application may not review the appeal
     • Deadlines:
       • Decision notification: within 30 days of a borrower making an appeal
       • Borrower acceptance/rejection of offered LOSS MITIGATION option, if applicable: At least 14 days after notification
       • If a LOSS MITIGATION option was previously offered and a borrower timely requested an appeal of a denial for some other loan modification option, deadline for accepting the original offer is extended to 14 days after appeal notification
          
2. No additional appeal required.
    

X.    FORECLOSURE PROCESS.

1. Generally, you cannot make the first notice or filing of any judicial or non-judicial foreclosure process until the borrower is more than 120 days delinquent. Delinquency is a period of time during which a borrower and the borrower’s mortgage loan obligation are delinquent.
   • ✪ Exceptions:
     • Borrower is notified that they are not eligible for any loss mitigation option, and the borrower has exhausted the appeal process and the borrower rejects all loss mitigation options.
     • The borrower fails to perform under an agreement on a loss mitigation option.
        
2. If a borrower has submitted a complete or facially complete application prior to initiation of foreclosure, moving forward is prohibited.
    
3. If a borrower submits complete loss mitigation application after formal foreclosure has been initiated but more than 37 days before a scheduled foreclosure sale (or at a time when no sale has been scheduled), conducting the sale or moving for a judgment until:
   • ✪ Borrower is provided a notice that they are not eligible for any loss mitigation option and the borrower has exhausted the appeal process.
   • ✪ The borrower rejects all offered loss mitigation options.
   • ✪ Borrower fails to perform under an agreement on a loss mitigation option.

XI.    APPLICATIONS SUBMITTED 37 DAYS OR LESS BEFORE A FORECLOSURE SALE

1. Compliance with the Real Estate Settlement Procedures Act (RESPA) procedural Loss Mitigation procedures is not required when borrowers submit their complete loss mitigation application 37 days or less before a scheduled foreclosure sale.
    
2. You are required separately by the general servicing policies, procedures, and requirements provisions to maintain policies and procedures that are reasonably designed to achieve the objective of properly evaluating loss mitigation applications. This includes properly evaluating a borrower who submits an application for loss mitigation option for all loss mitigation options available to the borrower. 
   • For example: If as part of our process we require evaluation of loss
     mitigation applications received closer to a foreclosure sale than required by the CFPB’s loss mitigation rule, such evaluation may be subject to requirements applicable to a review of a loss mitigation application submitted by a borrower 37 days or less to review of a loss mitigation application by a borrower 37 days or less before a foreclosure sale.

XII.    DUPLICATIVE LOSS MITIGATION APPLICATIONS

1. Second and subsequent applications require the bank to comply with all applicable requirements, unless:
   • ✪ Bank has previously complied with the requirements for a complete application submitted by the borrower; and
   • ✪ The borrower has been delinquent at all times since submitting the prior complete application.
      
2. Borrowers performing under a temporary loss mitigation program that does not modify the existing loan contract may be delinquent for these purposes.

XIII.    SCRA & FORECLOSURE

 

1. Non-judicial foreclosure may not be commenced against a person covered by the Servicemembers Civil Relief Act (SCRA) without first obtaining a court order. This applies during the period of active duty, and for 1 year thereafter.
   • ✪ Prior to initiating non-judicial foreclosure, verify all borrowers’ SCRA status at the Department of Defense website: https://www.dmdc.osd.mil/appj/dwp/status_finder.jsp.
   • ✪ If the person is covered by the Act, determine whether the mortgage was taken out prior to service. If it was taken out after service began, proceed as normal.
   • ✪ If the person has left service and more than one year has elapsed since separation, proceed as normal.
   • ✪ If the mortgage was taken out prior to active duty and the servicemember is still on activity or less than one year has elapsed since separation, refer the matter to our attorneys for evaluation.
      
2. Judicial foreclosure may be commenced. However, a court may not enter a default judgment unless it first appoints an attorney to represent the defendant’s interests. If that appointed attorney has been unable to contact the defendant servicemember, or if there may be a defense to the action that requires that the defendant be present the court must stay the proceeding for at least 90 days and may stay the proceedings longer.
   • ✪ Prior to making a judicial foreclosure referral, verify all borrowers’ SCRA status at the Department of Defense website: https://www.dmdc.osd.mil/appj/dwp/status_finder.jsp. Provide the results in the package for the attorneys.