1. Expansion of Protections – Servicers must comply with the loss
mitigation requirements in § 1024.41 for more than one loss
mitigation application over the life of a loan for borrowers who
becomes current at any time after submitting a complete loss
mitigation application.
Example: Assume a borrower received a loan modification in 2014 and
kept the loan current for 4 years. If, in 2018, the same borrower becomes
partially disabled and falls behind on the payments, the borrower would
be able to submit a new loss mitigation application and would be
protected under the loss mitigation rules for a subsequent loss mitigation
application.
2. 120 Day Exception – Servicers are not required to wait until a
borrower is more than 120 days delinquent before joining the
foreclosure action of a superior or subordinate lien holder.
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Loss Mitigation Expansion and Exception
