35
Early Intervention During Bankruptcy
1. Live Contact - A servicer is exempt from the early intervention live contact requirements
while any borrower on the mortgage loan is a debtor in bankruptcy or any borrower on the
mortgage loan has discharged personal liability for the mortgage loan through bankruptcy.
2. Written Notice – Servicers must provide a single written early intervention notice to any
delinquent borrower who files bankruptcy unless:
a. No loss mitigation option is available, or
b. Any borrower on the mortgage loan has invoked cease communication rights under the
FDCPA.
3. Resuming Compliance - Servicers must comply with both live contact and written early
intervention requirements once the bankruptcy case is dismissed, closed, or the borrower
reaffirms personal liability for the loan. Servicers must only comply with the written early
intervention requirement if the borrower discharged the loan but continues to make mortgage
payments.
