The 2016 Servicing Amendments allow but do not require
servicers to evaluate loss mitigation applications received from
potential successors prior to confirmation of successor-in-interest
status.
When a servicer elects not to evaluate a loss mitigation application
from a potential successor, the servicer must retain the
application, consider it received as of the confirmation date, and
evaluate it promptly following confirmation.
Nothing in the rule prohibits a servicer from requiring assumption
as a condition of a loss mitigation offer. However, a servicer
cannot condition evaluation of a loss mitigation application on a
confirmed successor's assumption of the mortgage.
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Loss Mitigation Applications
