209 CMR, § 18.24 - Mortgage Loan Servicing Practices
(1) A third
party loan servicer may not use unfair or unconscionable means in servicing any
mortgage loan. Without limiting the general application of the foregoing, the
following conduct is a violation of 209 CMR 18.24:
(a) Failing to comply with the provisions of
M.G.L. c. 183, § 54D regarding providing loan payoff information to a
consumer.
(b) Collecting private
mortgage insurance beyond the date for which private mortgage insurance is no
longer required.
(c) Failing to
comply with the provisions of M.G.L. c. 244, §§ 35A, 35B or 35C
regarding the right to cure a mortgage loan default and other
requirements.
(d) Knowingly or
recklessly facilitating the illegal foreclosure of real property
collateral.
(e) Failing to comply
with the provisions of
12 CFR
1024.38(b)(2) or other
applicable provision of 12 CFR part 1024, regarding the evaluation of borrowers
for loss mitigation options.
(f)
Failing to comply with the provisions of
12 CFR
1024.41(b)(2) or other
applicable provision of 12 CFR part 1024, regarding providing borrowers with
written acknowledgment of receipt of loan modification and required follow
up.
(g) Failing to comply with the
provisions of
12 CFR
1024.41(g) or other
applicable provision of 12 CFR part 1024, regarding the process of concluding
the modification process prior to initiating a foreclosure.
(h) Failing to comply with the provisions of
12 CFR
1024.40 or other applicable provision of 12
CFR part 1024, regarding providing borrowers with contact information for a
designated individual.
(i) Nothing
in 209 CMR 18.21A shall be
construed to prevent a third party loan servicer from offering or accepting
alternative loss mitigation options, including other modification programs
offered by the third party loan servicer, a short sale, a
deed-in-lieu of foreclosure or forbearance, if the borrower
requests such an alternative, is not eligible for or does not qualify for a
loan modification under a government sponsored mortgage loan modification
program or proprietary modification program, or rejects the third party loan
servicer's loss mitigation proposal.
(2) Information and documentation provided by
third party loan servicers in the context of foreclosure proceedings. To the
extent a servicer is authorized to act on behalf of a mortgagee,
(a) A third party loan servicer shall ensure
that all foreclosure affidavits or sworn statements are based on personal
knowledge.
(b) A third party loan
servicer shall ensure that foreclosure affidavits or sworn statements shall set
forth a detailed description of the basis of affiant's claimed personal
knowledge of information contained in the affidavit or sworn statement,
including sources of all information recited and a statement as to why the
sources are accurate and reliable.
(c) A third party loan servicer shall certify
in writing the basis for asserting that the foreclosing party has the right to
foreclose including, but not limited to, certification of the chain of title
and ownership of the note and mortgage from the date of the recording of the
mortgage being foreclosed upon. The third party loan servicer shall provide
such certification to the borrower with the notice of foreclosure provided
pursuant to M.G.L. c. 244, § 14, and shall also include a copy of the note
with all required endorsements. (d) A third party loan servicer shall comply
with all applicable state and federal laws governing the rights of tenants
living in foreclosed residential properties.
Notes
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