The rule expressly provides that servicers may offer short term repayment plans
to borrowers before evaluation of a complete loss mitigation application if:
The plan allows for the repayment of no more than 3 months of past due
payments,
The plan is structured to bring the loan current in no more than 6 months, and
The servicer provides the borrower a written notice promptly after making the
offer, stating the specific repayment terms and other disclosures.
The final rule also requires a similar written notice for short-term payment
forbearance programs offered based upon an evaluation of an incomplete loss
mitigation application.
17
Short Term Repayment Plans
