Past Due or Defaulted Mortgage Loan Borrowers – Understanding the Compliance Rules

Date Recorded: April 2, 2025
Presenter: Ginger McCullough, CRCM, Manager, Forvis, LLP.

A two-hour webinar that reviews Federal compliance rules that regulate how we interact with, and what disclosures we provide to, troubled borrowers.

All a creditor wants is its money back. So, a borrower becoming delinquent on their payments or otherwise defaulting on their obligations is an always-present worry that creditors have. Given the status of the economy, especially the rise of inflation and the housing market, and unpredictable employment issues, creditors currently may be even more worried. Although much of an institution’s actions when a borrower becomes defaulted is based on state and contract law, there are some Federal lending compliance rules that can apply depending on the circumstances and the servicer.

This webinar will discuss the various compliance regulations that speak to how institutions treat borrowers who have become delinquent or are in default on a mortgage loan: in such circumstances, some rules exempt disclosures, others require new disclosures, some require dispute and mitigation resolution procedures.

Also, institutions that are “small servicers” may be exempt or have separate rules in certain circumstances.

This webinar will discuss in detail these requirements, as well as include a brief note as to the interaction of safety and soundness and secondary market requirements with federal compliance regulations, as well as a brief overview of the applicability of various collection laws.

Here is What You Will Learn:

• RESPA/Regulation X
  • Exceptions from escrow rules
  • Dispute procedures
  • Force-placement
  • Early intervention, continuity of contact, loss mitigation

• TILA/Regulation Z
  • Periodic statements
  • ARM notices with certain loan modifications

• Other Rules
  • Fair Credit Reporting Act notification and dispute procedures
  • Homeownership counseling notification
  • Private mortgage insurance
  • Servicemember Civil Relief Act

• Successor-in-Interest provisions

• UDAAP/FDCPA

• Quick overview of the Uniform Retail Credit Classification Act; Troubled Debt Restructuring guidance; IRS Forms 1099-A and 1099-C