209 CMR, § 56.05 - Right to Request a Modified Mortgage Loan: Process

(1) Right to Request a Modified Mortgage Loan Notice. A creditor must send a Right to Request a Modified Mortgage Loan Notice in accordance with 209 CMR 56.09 to a borrower who has a certain mortgage loan concurrently with the Right to Cure Notice required under 209 CMR 56.03(1), if applicable.

(a) A creditor shall request a statement of the borrower's income and a complete list of debts and obligations concurrently with the Right to Request a Modified Mortgage Loan Notice. A creditor may use the Required Documents for Loan Modification Application form under 209 CMR 56.10 or other similar form.

(b) A copy of the Right to Request a Modified Mortgage Loan Notice shall be filed with the Office of the Attorney General.

(2) Borrower Eligibility. The right to request a mortgage loan modification shall be granted to a borrower who has a certain mortgage loan once during any three year period, regardless of the mortgage holder.

(3) Delivery.

(a) The creditor shall deliver the Right to Request a Modified Mortgage Loan Notice to the borrower by:

1. Hand-delivery; or

2. First class and certified mail, or similar service provided by a private carrier, to the borrower at the borrower's address last known to the creditor or anyone holding thereunder.

(b) The Right to Request a Modified Mortgage Loan Notice may be provided to a borrower in default with the written notice issued pursuant to 12 CFR 1024.39(b), if included as a separate document and delivered in accordance with 209 CMR 56.05(3)(a).

(4) Authorization to Send the Notice. A creditor may not send the Right to Request a Modified Mortgage Loan Notice under 209 CMR 56.05(1) unless it has been authorized to collect on the default.

(5) Borrower's Response to the Notice. The borrower shall notify the creditor of the mortgage modification option selected by the borrower within 30 days following delivery of the notice to the borrower, in accordance with 209 CMR 56.06(1).

(6) Creditor's Response to Borrower's Request for Modification. Not more than 30 days following receipt of a borrower's notification that the borrower intends to request a mortgage loan modification and a completed loan modification application pursuant to 209 CMR 56.06(1), or following receipt of the later of the notification or application if submitted separately, a creditor shall provide the borrower with a written assessment of the borrower's ability to make an affordable monthly payment. This assessment shall include the following:

(a) A written statement of the borrower's income, debts, assets and obligations as determined by the creditor;

(b) The creditor's net present value analysis of a modified mortgage loan;

(c) The creditor's anticipated net recovery at foreclosure;

(d) A statement of the interests of the creditor; and

(e) A modified mortgage loan offer or a notice that no modified mortgage loan will be offered.

(7) Modified Mortgage Loan Offer. If a creditor offers a modified mortgage loan, the creditor shall provide the borrower with the first and last names and contact phone numbers of not more than two creditor's representatives responsible for implementing the modified mortgage loan offer. A creditor shall be presumed to have provided the written assessment to the borrower if the creditor provides proof of delivery through the United States Postal Service or similar carrier.

(8) Response to Modified Mortgage Loan Offer. A borrower who receives a modified mortgage loan offer from a creditor shall respond within 30 days from the receipt of the modified mortgage loan offer.

(a) The borrower may:

1. accept the offer of a loan modification;

2. make a reasonable counteroffer; or

3. waive the period of time remaining relative to the borrower's right to cure, if any, and proceed to foreclosure.

(b) The borrower's response shall be in writing, and, if a counteroffer is proposed, shall include substantiating documentation in support of the counteroffer.

(c) Where a counteroffer is proposed by a borrower, a creditor shall accept, reject or propose a counteroffer to the borrower within 30 days of receipt of the counteroffer.

(9) Semi-annual Reporting Requirement. A creditor shall report, on a semi-annual basis, to the Division of Banks the final outcome of each mortgage loan modification on all mortgage loans for which the creditor sent to a borrower a notice of the right to request a modified mortgage loan.

Notes

209 CMR, § 56.05

Amended by Mass Register Issue 1328, eff. 12/16/2016.