Which of the following lending regulations apply to mortgage loans and settlement services?

Overview

The Real Estate Settlement Procedures Act of 1974 (RESPA) (12 U.S.C. § 2601, et seq.) became effective on June 20, 1975. It requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with pertinent and timely disclosures about the nature and costs of the real estate settlement process. RESPA also prohibits practices such as kickbacks, and limits the use of escrow accounts. The Department of Housing and Urban Development (HUD) originally published Regulation X, which implements RESPA.

The Dodd-Frank Wall Street Reform and Consumer Protection Act, P.L. 111–203 (July 10, 2010) (Dodd-Frank Act) granted rule-making authority under RESPA to the Consumer Financial Protection Bureau (CFPB). In December 2011, the CFPB restated HUD’s implementing regulation to 12 CFR Part 1024.

In 2013, the CFPB issued several final rules amending Regulation X. The final rules implemented certain provisions of Title XIV of the Dodd-Frank Act and included major and technical changes to the existing regulations. Substantial changes included modifying the servicing transfer notice requirements and implementing new procedures and notice requirements for borrowers’ error resolution requests and information requests. The amendments also included new provisions regarding escrow payments, force-placed insurance, general servicing policies, procedures, and requirements, early intervention, continuity of contact, and loss mitigation. The amendments became effective on January 10, 2014.

On December 31, 2013, the CFPB published final rules implementing Sections 1098(2) and 1100A(5) of the Dodd-Frank Act, which direct the CFPB to publish a single, integrated disclosure for mortgage transactions which includes mortgage disclosure requirements under the Truth in Lending Act (TILA) and sections 4 and 5 of RESPA. These amendments, also known as the “Know Before You Owe” mortgage disclosure rule, are referred to in this document as the “TILA-RESPA Integrated Disclosure Rule” or “TRID,” and are applicable to covered closed-end mortgage loans for which a creditor or mortgage broker receives an application on or after October 3, 2015. As a result, Regulation Z now houses the integrated forms, timing, and related disclosure requirements for most closed-end consumer mortgage loans.

The new integrated disclosures are not used to disclose information about reverse mortgages, home equity lines of credit (HELOCs), chattel-dwelling loans such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land), or other transactions not covered by the TILA-RESPA Integrated Disclosure rule. The final rule also does not apply to loans made by a creditor who makes five or fewer mortgages in a year. Creditors originating these types of mortgages must continue to use, as applicable, the Good Faith Estimate, HUD-1 Settlement Statement, and Truth in Lending disclosures.

On August 4, 2016, the CFPB issued a final rule (2016 Mortgage Servicing Rule) amending certain mortgage servicing provisions in Regulation X and Regulation Z issued by the CFPB in 2013. This final rule clarifies, revises, or amends provisions regarding force-placed insurance notices, policies and procedures, early intervention, and loss mitigation requirements under Regulation X’s servicing provisions; and prompt crediting and periodic statement requirements under Regulation Z’s servicing provisions. The final rule also addresses proper compliance regarding certain servicing requirements when a person is a potential or confirmed successor in interest, is a debtor in bankruptcy, or sends a cease communication request under the Fair Debt Collection Practices Act. The final rule also makes technical corrections to several provisions of Regulations X and Z.

The exam procedures will use “RESPA” interchangeably for Real Estate Settlement Procedures Act and Regulation X, since Regulation X is the implementing regulation. All of the regulation references are to Regulation X (12 CFR 1024).

Full text of Real Estate Settlement Procedures Act (Regulation X) can be found here. (opens new window)

• Definitions – General Provisions (opens new window)
• Definitions – Mortgage Servicing (opens new window)
• Associated Risks
• Examination Objectives
• Examination Procedures
• Review Considerations
• Checklist

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Associated Risks

• Compliance Risk can occur when the credit union does not implement controls to comply with RESPA.
• Transaction Risk can occur when the credit union does not have adequate internal controls in place and as a result suffers a loss.
• Reputation Risk can occur when the credit union incurs fines and penalties because it did not comply with RESPA.
• Strategic Risk can occur when the board of directors does not perform due diligence in reviewing policies and procedures, and existing and prospective products and services for compliance with RESPA.

Examination Objectives

• Determine if the credit union has policies and procedures to ensure it complies with RESPA.
• Determine if the credit union engages in any practices prohibited by RESPA, such as kickbacks, paying or receiving referral fees or unearned fees, or excessive escrow assessments.
• Determine if the Loan Estimate, Special Information Booklet called “Your Home Loan Toolkit”, Written List of Service Providers, Closing Disclosure, and other required disclosures are in a form that complies with RESPA, are properly completed, and provided to applicants/borrowers within required time periods.
• Determine if the credit union submits the required initial and annual escrow account statements to borrowers as applicable, properly administrates escrow accounts, and otherwise complies with requirements and limitations on escrow account arrangements.
• Determine if the credit union responds to borrower error notices about the servicing of their mortgage loans in compliance with RESPA.
• Determine if the credit union responds to borrower inquiries for information about the servicing of their mortgage loans in compliance with RESPA.
• Determine if the credit union provides proper notices to mortgage loan borrowers before assessing charges or fees for force-placed insurance and refunding charges and fees according to RESPA.
• Determine if the credit union complies with RESPA’s record retention requirements.
• Determine if the credit union follows RESPA’s early intervention and continuity of contact requirements, as applicable.
• Determine if the credit union complies with RESPA’s loss mitigation procedures, as applicable.

Examination Procedures

General

1. Review the types of loans covered by RESPA and applicable exemptions.
2. Review the Loan Estimate, Special Information Booklet called “Your Home Loan Toolkit”, Good Faith Estimate (GFE), Uniform Settlement Statement (HUD-1 or HUD-1A), Closing Disclosure, mortgage servicing transfer disclosure, and affiliated business arrangement disclosure for compliance with the requirements of Regulation X. Review standardized and model forms in the appendices to the regulation.
3. If electronic disclosures are provided, determine whether the credit union has policies and procedures to provide electronic delivery in accordance with the Electronic Signatures in Global and National Commerce Act (ESIGN).
4. Review written loan policies and operating procedures in connection with federally related mortgage loans and discuss them with credit union personnel. Determine whether the credit union has policies and procedures that address the following:
   • The information that will be collected from applicants in connection with issuing a GFE, and what information will be relied on to issue a GFE;
   • Provision of a revised GFE in the event of changed circumstances;
   • Provision of a revised GFE for transactions involving new home purchases;
   • To cure a tolerance violation by reimbursing the borrower the amount by which the tolerance was exceeded within 30 calendar days from date of settlement; and
   • To cure a technical or inadvertent error on the HUD-1/1A by providing a revised settlement statement to the borrower within 30 calendar days of settlement.
5. Interview mortgage lending personnel to determine:
   • Identity of persons or entities referring federally related mortgage loan business;
   • The nature of services provided by referral sources, if any;
   • Settlement service providers used by the credit union;
   • When the Special Information Booklet is given;
   • The timing of the Good Faith Estimate and how fee information is determined;
   • Any providers whose services are required by the credit union;
   • How borrower inquiries regarding loan servicing are handled and within what time frames; and
   • Whether escrow arrangements exist on mortgage loans.
6. Assess the overall level of knowledge and understanding of regulatory requirements by mortgage lending personnel.

Special Information Booklet – § 1024.6 (opens new window)

1. Determine through discussions with credit union management and reviews of credit files whether the Special Information Booklet called “Your Home Loan Toolkit”, if required, is provided within three business days after the credit union or broker receives a written application for a loan. (§ 1024.6(a)(1) (opens new window))

Good Faith Estimate – § 1024.7 (opens new window)

Note: This section of the Procedures only applies to loans not subject to the TILA-RESPA Integrated Disclosure Final Rule, including: reverse mortgages, home equity lines of credit (HELOCs), chattel-dwelling loans such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land). This section also only applies to loans made by a creditor who makes five or fewer mortgages in a year.

1. Determine whether the credit union provides a Good Faith Estimate of charges for settlement services, if required, within three business days after receipt of a written application. (§ 1024.7(a) (opens new window))
2. Review the Good Faith Estimate to determine if it appears exactly as set forth in Appendix C (opens new window).
3. Review a sample of loan files that include GFEs to determine the following:
   • Whether the credit union followed GFE application requirements.
   • If the credit union provided a revised GFE to the applicant due to changed circumstances, determine whether the credit union followed regulatory requirements for issuing a revised GFE due to changed circumstances.
   • Whether the GFE was completed as required in the regulations and instructions (§ 1024.7 (opens new window) and Appendix C (opens new window)) and whether it included the following information:
     • Interest rate expiration date;
     • Settlement charges expiration date;
     • Rate lock period;
     • Number of days before settlement the interest rate must be locked, if applicable;
     • Summary of loan information:
       • Initial loan amount*,
       • Loan term*, and
       • Initial interest rate*;
         (*For reverse mortgage loans, the initial loan amount is the amount of the initial principal limit. The loan term is disclosed as “N/A” when the loan term is conditioned upon the occurrence of a specified event, such as the death of the borrower or the borrower no longer occupying the property for a certain period of time. The initial interest rate is the interest rate indicated on the legal obligation.)
     • Escrow account information;
     • Estimates for settlement charges; and
     • Left hand column on trade-off table completed for loan in the GFE.
   • Whether, for no cost loans, all third-party fees paid by the credit union are itemized and listed in the appropriate blocks on the second page of the GFE.
   • Whether a separate sheet was provided with the GFE that identifies the settlement service providers for the services listed on the GFE.

Uniform Settlement Statement Form (HUD-1 and HUD-1A) – § 1024.8 (opens new window)

Note: This section of the Procedures only applies to loans not subject to the TILA-RESPA Integrated Disclosure Final Rule, including: reverse mortgages, home equity lines of credit (HELOCs), chattel-dwelling loans such as loans secured by a mobile home or by a dwelling that is not attached to real property (i.e., land). This section also only applies to loans made by a creditor who makes five or fewer mortgages in a year.

1. Using the same sample of loan files as used for the review of the GFE, review the Uniform Settlement Statement (HUD-1 or HUD-1A, as appropriate) (§§ 1024.8 (opens new window), Appendix A (opens new window)) to determine whether:
   • Charges are properly itemized in accordance with the instructions for completion of the HUD-1 or HUD-1A; (Appendix A (opens new window))
   • All charges paid by the borrower and the seller are itemized and include the name of the recipient; (§§ 1024.8(b) (opens new window), Appendix A (opens new window))
   • Average charges for settlement services are calculated in accordance with § 1024.8(b)(2) (opens new window); and
   • Charges required by the credit union but paid outside of closing are itemized on the settlement statement, marked as “paid outside of closing” or “P.O.C.,” but not included in cost totals. (§§ 1024.8(b) (opens new window), Appendix A (opens new window))
2. If the credit union conducts the settlement, determine whether:
   • The borrower, upon request, is allowed to inspect the HUD-1 or HUD-1A at least one business day prior to settlement; (§ 1024.10(a) (opens new window))
   • The HUD-1 or HUD-1A is provided to the borrower and seller at or before settlement (except where the borrower has waived the right to delivery and in the case of exempt transactions); and (§ 1024.10(b) (opens new window))
   • In cases where the right to delivery is waived or the transaction is exempt, the HUD- 1/1A is mailed as soon as practicable after settlement. (§§ 1024.10(b), (c), and (d) (opens new window))
3. Determine whether, in the case of an inadvertent or technical error on the HUD-1/1A, the credit union provides a revised HUD-1/1A to the borrower within 30 calendar days after settlement. (§ 1024.8(c) (opens new window))
4. Review the HUD-1 or HUD-1A form prepared in connection with each GFE reviewed to determine if the amount stated for any itemized service exceeds the amount shown on the GFE for that service. If the amount stated on the HUD-1 exceeds the amount shown on the GFE and such overcharge violates the tolerance for that category of settlement services, determine whether the credit union cured the tolerance violation by reimbursing to the borrower the amount by which the tolerance was exceeded, at settlement or within 30 calendar days from date of settlement. (§ 1024.7(i) (opens new window))
5. Determine whether HUD-1 and HUD-1A forms are retained for five years. If the credit union disposes of its interest in the mortgage and does not service the loan, determine whether the HUD-1 or HUD-1A form is transferred to the new asset owner with the loan file. (§ 1024.10(e) (opens new window))

No Fees for RESPA Disclosures – § 1024.12 (opens new window)

1. Determine whether the credit union charges a fee specifically for preparing and distributing the HUD-1 forms, escrow statements or documents required under the Truth in Lending Act. (§ 1024.12 (opens new window))
   • If any fee is charged before providing a GFE, determine whether such fee is limited to the cost of a credit report. (§ 1024.7(a)(4) (opens new window))

Payment or Receipt of Referral or Unearned Fees – § 1024.14 (opens new window)

1. Determine if management is aware of the prohibition against payment and receipt of any fee, kickback, or thing of value in return for the referral of settlement services business. (§§ 12 U.S.C. 2607 (opens new window), 1024.14 (opens new window))
2. Determine if management is aware of the prohibition against unearned fees where a charge for settlement services is divided between two or more parties.
3. Through interviews with credit union management and personnel, file reviews, review of Good Faith Estimates, and HUD-1 and HUD-1A, determine if federally related mortgage loan transactions are referred to the credit union by brokers, affiliates, or other parties. Identify those parties. Also, identify persons or entities to which the credit union refers settlement services business in connection with a federally related mortgage transaction.
   • Identify the types of services rendered by the broker, affiliate, or service provider;
   • By a review of the credit union’s general ledger or otherwise, determine if fees were paid to the credit union or any parties identified;
   • Confirm that any fees paid or received by the credit union meet the requirements of § 1024.14(g) (opens new window) and are not kickbacks or referral fees, but are for goods or facilities actually furnished or services actually performed. This includes payments to an affiliate or the affiliate’s employees;
   • In cases where a fee is split between the credit union and one or more other parties, confirm that the fee met the requirements of § 1024.14 (opens new window) and that each party actually performed services for that fee. This includes payments to an affiliate or the affiliate’s employees; and
   • In all cases where there is an unearned fee (whether split between parties or not), determine whether the credit union may have misled the consumer about or misrepresented the nature, purpose, or amount of a fee, or failed to properly disclose a fee to the consumer. In such cases, consult with the NCUA’s Central Office to discuss whether there may be a basis for a UDAAP claim (for unfair, deceptive, or abusive acts or practices).

Affiliated Business Arrangements – § 1024.15 (opens new window)

1. Determine from the HUD-1 or HUD-1A and from interviews with credit union management if the credit union referred a borrower to a settlement service provider.
2. If the credit union referred a borrower to an affiliated settlement service provider, determine whether the Affiliated Business Arrangement disclosure statement (Appendix D (opens new window)) was provided as required by § 1024.15(b)(1) (opens new window).
3. Other than an attorney, credit reporting agency, or appraiser representing the lender, if the credit union referred a borrower to a settlement service provider, determine whether the credit union required the use of the provider. (§ 1024.15(b)(2) (opens new window))

Purchase of Title Insurance – § 1024.16 (opens new window)

1. When the credit union owns the property being sold, determine whether it requires that title insurance be purchased from a particular company. (§ 1024.16 (opens new window))

Escrow Accounts – § 1024.17 (opens new window)

If the credit union maintains escrow accounts in connection with a federally related mortgage loan, complete the following procedures.

1. Determine whether the credit union performed an initial escrow analysis (§ 1024.17(c)(2) (opens new window)) and for transactions not covered by TRID, provided the initial escrow statement required by § 1024.17(g) (opens new window). The statement must contain the following:
   • Amount of monthly payment;
   • Portion of the monthly payment being placed in escrow;
   • Charges to be paid from the escrow account during the first 12 months;
   • Disbursement dates; and
   • Amount of cushion.
2. Determine if the statement was given to the borrower at settlement or within 45 days after the escrow account was established. This statement may be incorporated into the HUD-1 statement. (§§ 1024.17(g)(1) and (2) (opens new window))
3. Determine whether the credit union performs an annual analysis of the escrow account. (§§ 1024.17(c)(3), 1024.17(c)(7) (opens new window), 1024.17(i) (opens new window))
4. Determine whether the annual escrow account statement is provided to the borrower within 30 days of the end of the computation year. (§ 1024.17(i) (opens new window))
5. Determine if the annual escrow statement contains the following 1024.17(i)(1) (opens new window)):
   • Amount of monthly mortgage payment and portion that were placed in escrow;
   • Amount of past year’s monthly mortgage payment and portion that went into escrow;
   • Total amount paid into escrow during the past computation year;
   • Total amount paid out of escrow account during same period for taxes, insurance, and other charges;
   • Balance in the escrow account at the end of the period;
   • How a surplus, shortage, or deficiency is to be paid/handled; and
   • If applicable, the reason why estimated low monthly balance was not reached.
6. Determine whether monthly escrow payments following settlement are within the limits of § 1024.17(c) (opens new window).

List of Home Ownership Counseling Organizations - § 1024.20 (opens new window)

1. Determine whether the credit union provides applicants a list of home ownership counseling agencies within three business days of receiving an application (§ 1024.20(a) (opens new window)).
2. Determine whether the credit union obtained the list of home ownership counseling agencies from the CFPB’s or HUD’s website and that they obtained the list no more than 30 days prior to the time the list was provided to the applicant (§ 1024.20(a) (opens new window)).
3. For HELOCs, determine if the credit union complies with either the three business day timeframe or with Regulation Z’s timeframe listed in § 1026.40(b) (opens new window) (§ 1024.20(b) (opens new window)).

Mortgage Servicing Transfers – § 1024.33 (opens new window)

1. Determine whether the disclosure form is substantially in conformity with the model disclosure in Appendix MS-1 (opens new window).
2. Determine that the lender, mortgage broker who anticipates using table funding, or dealer in a first-lien dealer loan provide the servicing disclosure statement to reverse mortgage applicants within three business days after receiving the application. (§ 1024.33(a) (opens new window))
3. Determine that the disclosure states whether the loan may be assigned, sold, or transferred to any person at any time. (§ 1024.33(a) (opens new window))
4. Determine whether the credit union has transferred or received mortgage servicing rights.
5. If it has transferred servicing rights, determine whether notice to the borrower was given at least 15 days prior to the transfer. (§ 1024.33(b)(3) (opens new window))
6. If it has received servicing rights, determine whether notice was given to the borrower within 15 days after the transfer. (§ 1024.33(b)(3) (opens new window))
7. Determine whether the notice by transferor and transferee includes the following information (§ 1024.33(b)(4) (opens new window)). Sample language for the notice of transfer is contained in Appendix MS-2. (opens new window)
   • The effective date of the transfer;
   • A statement that the transfer does not affect the terms or conditions of the mortgage, other than terms directly related to its servicing;
   • The name, consumer inquiry addresses (including, at the option of the servicer, a separate address where qualified written requests must be sent), and a toll-free or collect call telephone number for an employee or department of the transferee servicer;
   • A toll-free or collect call telephone number for an employee or department of the transferor servicer that can be contacted by the borrower for answers to servicing transfer inquiries;
   • The date on which the present servicer will cease accepting payments and the date the new servicer will begin accepting payments relating to the transferred loan;
   • Any information concerning the effect of the transfer on the availability or terms of optional insurance and any action the borrower must take to maintain coverage; and
   • A statement of the borrower’s rights in connection with complaint resolution. (Appendix MS-2 (opens new window))
8. Through a review of late notices or otherwise if the transferor servicer received payment, determine that no late fees have been imposed and that no payments have been treated as late within 60 days following a transfer of servicing. (§ 1024.33(c) (opens new window))

Timely Escrow Payments and Treatment of Escrow - § 1024.34 (opens new window)

1. Ensure the credit union made payments from the escrow account in a timely manner. (§ 1024.34 (opens new window))
2. Review escrow accounts for paid off mortgages to determine whether the credit union returned amounts remaining in escrow within 20 days (excluding legal public holidays, Saturdays, and Sundays) after the borrower paid the mortgage loan in full. (§ 1024.34(b) (opens new window))

Error Resolution Procedures – § 1024.35 (opens new window)

1. If the credit union gives a specific address to receive notice of errors, ensure they notified the borrower in writing that the borrower must use that address. (§ 1024.35(c) (opens new window))
2. Also, ensure the credit union provided that address to the borrower in each of the following three types of communications:
   • Any periodic statement or coupon book required by § 1026.41 (opens new window);
   • Any website the credit union maintains for servicing the loan; and
   • Any notice required by § 1024.39 (opens new window) (early intervention) or § 1024.41 (opens new window) (loss mitigation) that includes contact information for assistance. (Comment 1024.35(c)(2) (opens new window)).
3. Determine if the credit union properly acknowledged the error notice by providing written acknowledgement to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after receiving an error notice. (§ 1024.35(d) (opens new window))
4. If an acknowledgment was not given, determine if it was not required for one of the following reasons:
   • The credit union corrected the errors asserted and notified the borrower in writing within five days (excluding legal public holidays, Saturdays, and Sundays) of receiving the error notice; (§ 1024.35(f) (opens new window))
   • The credit union determined that it was not required to respond and provided written notice, with the reason for its decision not to take any action, to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination; (§ 1024.35(g) (opens new window)) or
   • The error notice related to violations of certain loss mitigation procedures under § 1024.35(b)(9) or (10) (opens new window) and the credit union received it seven or fewer days before a foreclosure sale.
5. Determine if the credit union properly responded to a borrower’s written error notice by:
   • Correcting the errors identified by the borrower as well as any other errors that were discovered during the investigation and providing written notice to the borrower of the corrections, the date the corrections took effect, and contact information for further assistance;
     OR
   • Conducting a reasonable investigation and providing the borrower with a written notice stating that the credit union has determined that no error occurred, the reasons for its determination, the borrower’s right to request documents the credit union relied on in reaching its determination and how to do so, and contact information for further assistance (§ 1024.35(e) (opens new window)).
     AND
   • If the alleged error was a failure to provide an accurate payoff balance amount, the credit union responded within seven days (excluding legal public holidays, Saturdays, and Sundays); (§ 1024.35(e)(3)(i)(A) (opens new window))
   • If the alleged error was either (1) making the first notice or filing for a judicial or non-judicial foreclosure process in violation of § 1024.41(f) or (j) (opens new window); or (2), moving for foreclosure judgment or order of sale or conducting a foreclosure sale in violation of § 1024.41(g) or (j) (opens new window), determine whether the credit union respond by either of 30 days (excluding legal public holidays, Saturdays, and Sundays) or the date of a foreclosure sale, whichever comes first; and (§ 1024.35(e)(3)(i)(B) (opens new window))
     NOTE: If the credit union received the error notice seven or fewer days before a foreclosure sale, the credit union is not required to respond in writing, but must make a good faith attempt to respond orally or in writing to the borrower and either correct the error or state the reason the credit union determined that no error occurred. (§ 1024.35(f)(2) (opens new window))
   • For all other alleged errors, the credit union responds within 30 days (excluding legal public holidays, Saturdays, and Sundays) unless, before the expiration of that 30-day period, the credit union extended the time for responding by an additional 15 days (excluding legal public holidays, Saturdays, and Sundays) by notifying the borrower in writing of the extension and the reasons for it. (§ 1024.35(e)(3) (opens new window))
6. If the credit union did not respond, ensure they determined that the above responses were not required because:
   • The credit union corrected the errors asserted and notified the borrower in writing within five days (excluding legal public holidays, Saturdays, and Sundays) of receiving the error notice; (§ 1024.35(f) (opens new window))
   • The credit union determined that it was not required to respond and provided written notice, with the reason for its decision not to take any action, to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination; or (§ 1024.35(g) (opens new window))
   • The error notice related to violations of certain loss mitigation procedures under § 1024.35(b)(9) or (10) (opens new window) and was received by the credit union seven or fewer days before a foreclosure sale. For such error notices, the credit union must make a good faith attempt to respond orally or in writing to the borrower and either correct the error or state the reason the credit union determined that no error occurred. (§ 1024.35(f)(2) (opens new window))
7. Determine if the supporting documentation the credit union relied up to determine that no error occurred was provided to the borrower within 15 days (excluding legal public holidays, Saturdays, and Sundays) of the borrower’s request. (§ 1024.35(e)(4) (opens new window))
8. Determine if written notification was provided to the borrower within 15 days (excluding legal public holidays, Saturdays, and Sundays) if the credit union withheld documents that included confidential, proprietary, or privileged information. (§ 1024.35(e)(4) (opens new window))
9. Determine if one of the following three exemptions applied—nullifying the credit union’s requirement to respond: (§ 1024.35(g) (opens new window))
   • The error asserted is substantially the same as an error previously asserted by the borrower that the credit union already complied with;
   • The error notice was overbroad; or
   • The error notice was received a year or more after the loan servicing rights were transferred from the credit union or the loan was paid off.
10. Ensure the credit union did not require the borrower to provide supporting documents as a condition of investigating the alleged error. (§ 1024.35(e)(2)(i) (opens new window))
11. Ensure the credit union refrained from determining that no error occurred without conducting a reasonable investigation due to the borrower’s failure to provide any requested information. (§ 1024.35(e)(2)(ii) (opens new window))
12. Ensure the credit union did not charge a fee or require the borrower to make any payments as a condition to responding to an error notice. (§ 1024.35(h) (opens new window))
13. Ensure the credit union did not provide any adverse information about a payment to a consumer reporting agency within 60 days of receiving an error notice on the payment. (§ 1024.35(i) (opens new window))

Requests for Information – § 1024.36 (opens new window)

1. If the credit union gave a specific address for requests for information, determine if the credit union provided written notice of the address where the borrower must send information requests, along with a statement informing the borrower that the provided address must be used to request information. (§ 1024.36(b) (opens new window))
2. Determine whether the credit union provided the borrower with the address in each of the following communications:
   • Any periodic statement or coupon book required under § 1026.41 (opens new window);
   • Any website the credit union maintains for servicing the loan; and
   • Any notice required by § 1024.39 (opens new window) (early intervention) or 1024.41 (opens new window) (loss mitigation) that includes contact information for assistance. (Comment 1024.36(c)(2) (opens new window))
3. Determine whether the credit union gave the same address for receiving information requests. (§ 1024.36(b) (opens new window))
4. Determine whether the credit union responds to information requests sent to any of its offices. (12 CFR Part 1024, Supp. I, Comment 1024.36(b)(1) (opens new window))
5. Determine whether written acknowledgement was provided to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) of the credit union receiving the information request. (§ 1024.36(c) (opens new window))
6. If no such acknowledgment was provided, ensure the credit union determined that acknowledgement was not required because:
   • The credit union provided the borrower with the information requested and contact information (including telephone number) for further assistance within five days (excluding legal public holidays, Saturdays, and Sundays); or (§ 1024.36(e) (opens new window))
   • The credit union determined that it was not required to respond and provided the borrower written notice with the reason for its determination not to respond to the request to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination. (§ 1024.36(f) (opens new window))
7. Determine if the credit union properly responded to the information request by:
   • Providing the requested information and contact information for further assistance; or (§ 1024.36(d)(1)(i) (opens new window))
   • Conducting a reasonable search for the requested information and providing the borrower with a written notice telling the borrower that the credit union has determined that the requested information is not available, the reason for the credit union’s determination, and contact information for further assistance. (§ 1024.36(d)(1)(ii) (opens new window))
8. Determine whether the credit union complied with the following time frames:
   • They responded within 10 days (excluding legal public holidays, Saturdays, and Sundays) to borrower request for the identity of or contact information for the owner or assignee of a mortgage loan; and (§ 1024.36(d)(2)(i)(A) (opens new window))
   • They responded within 30 days (excluding legal public holidays, Saturdays, and Sundays) to all other information requests, unless, before the expiration of that 30-day period, the credit union extended the time for responding by an additional 15 days (excluding legal public holidays, Saturdays, and Sundays) by notifying the borrower in writing of the extension and the reasons for it. (§ 1024.36(d)(2)(i)(B) (opens new window))
9. If the credit union did not respond to the borrower’s request for information, determine whether the above responses were not required because:
   • The credit union provided the borrower with the information requested and contact information (including telephone number) for further assistance within five days (excluding legal public holidays, Saturdays, and Sundays); and (§ 1024.36(e) (opens new window))
   • The credit union determined that it was not required to respond and provided the borrower written notice with the reason for its determination not to respond to the request to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination (§ 1024.36(f)(2) (opens new window)).
10. If the information requested is the identity or contact information of the owner or assignee of a mortgage loan, determine whether the credit union complied by identifying the person on whose behalf the credit union receives payments. (Comment 1024.36(a)(2) (opens new window))
11. If the credit union was exempt from the requirement to respond, ensure they determined whether one of the following five exemptions applied:
    • The information requested is substantially the same as information the borrower previously requested, and the credit union has already complied with the requirements for responding to the first request; (§ 1024.36(f)(1)(i) (opens new window))
    • The information requested is confidential, proprietary, or privileged; (§ 1024.36(f)(1)(ii) (opens new window))
    • The information requested is not directly related to the borrower’s mortgage loan account; (§ 1024.36(f)(1)(iii) (opens new window))
    • The information request is overbroad or unduly burdensome. A request is overbroad if the borrower requests that the credit union provide an unreasonable volume of documents or information. A request is unduly burdensome if a diligent credit union could not respond within the time periods in § 1024.36(d)(2) (opens new window) or would incur costs (or have to dedicate resources) that would be unreasonable under the circumstances; or (§ 1024.36(f)(1)(iv) (opens new window))
    • The information request is sent more than one year after either the mortgage loan balance was discharged or the credit union transferred the mortgage loan to another servicer. (§ 1024.36(f)(1)(v) (opens new window))
12. If a submitted request was overbroad or unduly burdensome, determine if the credit union reasonably identified a valid information request in the submission. (§ 1024.36(f)(1)(iv) (opens new window))
13. Ensure the credit union did not charge a fee or require a borrower to make a payment as a condition of responding to an information request. (§ 1024.36(g) (opens new window))

Force-Placed Insurance – § 1024.37 (opens new window)

1. Ensure the credit union had a reasonable basis to believe that the borrower did not comply with the mortgage loan contract’s requirement to maintain hazard insurance (§ 1024.37(b) (opens new window)).
2. Determine whether the credit union provided the initial written notice to the borrower at least 45 days before assessing a fee or charge. (§ 1024.37(c) (opens new window)(i))
3. Determine that the initial notice includes all the following information (if applicable) (§ 1024.37(c) (opens new window)(2)):
   • The date of the notice;
   • The credit union’s name and mailing address;
   • The borrower’s name and mailing address;
   • A statement that requests the borrower provide hazard insurance information for the borrower’s property and that identifies the property by its physical address;
   • A statement that the borrower’s hazard insurance has expired or is expiring (as applicable), that the credit union lacks evidence that the borrower has hazard insurance coverage past the expiration date, and (if applicable) that identifies the type of hazard insurance lacking;
   • A statement that hazard insurance is required on the borrower’s property and that the credit union has purchased or will purchase insurance at the borrower’s expense;
   • A request that the borrower promptly provide the credit union with insurance information;
   • A description of the requested insurance information, how the borrower may provide such information, and (if applicable) that the requested information must be in writing;
   • A statement that the insurance coverage the credit union has purchased or will purchase may cost significantly more than, and provide less coverage than, hazard insurance purchased by the borrower;
   • The credit union’s phone number for borrower questions; and
   • A statement advising that the borrower review additional information provided in the same mailing (if applicable).
4. Determine if the initial notice was in the correct form. (§§ 1024.37(c)(3) to (4) (opens new window))
5. Determine whether the credit union provided a reminder notice: (§ 1024.37(d)(1) (opens new window))
   • At least 30 days after mailing or delivering the initial notice; and
   • At least 15 days before assessing any charges or fees for force-placed insurance if they had received no hazard insurance information.
6. For borrowers who did not provide hazard insurance information, determine whether the reminder notice: (§ 1024.37(d)(2)(i) (opens new window))
   • Contained the date of the reminder notice and all of the other information provided in the initial notice;
   • Advised that it is a second and final notice; and
   • Identified the annual cost of force-placed insurance or, if unknown, a reasonable estimate.
7. When the credit union receives hazard insurance information but does not receive evidence of continuous coverage, determine if the reminder notice included all the following information (as applicable): (§ 1024.37(d)(2)(ii) (opens new window))
   • The date of the reminder notice;
   • The credit union’s name and mailing address;
   • The borrower’s name and mailing address;
   • A statement requesting that the borrower provide hazard insurance information for the borrower’s property and that identifies the property by its physical address;
   • The credit union’s phone number for borrower questions;
   • A statement advising that the borrower review additional information provided in the same mailing (if applicable);
   • A statement that it is the second and final notice;
   • The annual cost of force-placed insurance, or if unknown, a reasonable estimate;
   • A statement that the credit union has received the hazard insurance information that the borrower provided;
   • A request that the borrower provide the missing information; and
   • A statement that the borrower will be charged for insurance the credit union purchases for the time period in which the credit union cannot verify coverage.
8. Determine whether the reminder notice was in the correct form. (§§ 1024.37(d)(3) to (4) (opens new window))
9. Determine if by the end of the 15-day period after the credit union sent the reminder notice, the borrower provided evidence of hazard insurance that complies with the loan contract continuously in place. (§§ 1024.37(c)(1)(iii) (opens new window), Comment 1024.37(c)(1)(iii)(2) (opens new window))
10. Determine whether the credit union provided a written renewal notice to the borrower at least 45 days before assessing any fee or charge. (§ 1024.37(e)(1)(i) (opens new window))
11. Ensure the renewal notice includes all of the following (as applicable): (§ 1024.37(e)(2) (opens new window))
    • The date of the renewal notice;
    • The credit union’s name and mailing address;
    • The borrower’s name and mailing address;
    • A statement that requests the borrower to update the hazard insurance information for the borrower’s property and that identifies the property by its physical address;
    • A statement that the credit union previously purchased force-placed insurance at the borrower’s expense because the credit union did not have evidence that the borrower had hazard insurance coverage;
    • A statement that the force-placed insurance has expired or is expiring, as applicable, and that the credit union intends to renew or replace it because hazard insurance is required on the property;
    • A statement that the insurance coverage the credit union has purchased or will purchase may cost significantly more than, and provide less coverage than, insurance purchased by the borrower, and identifying the annual premium cost of force-placed insurance or a reasonable estimate;
    • A statement that if the borrower purchases hazard insurance, the borrower should promptly provide the credit union with insurance information;
    • A description of the requested insurance information and how the borrower may provide such information, and if applicable, that the requested information must be in writing;
    • The credit union’s telephone number for borrower questions; and
    • A statement advising the borrower to review additional information provided in the same mailing (if applicable).
12. Determine if the renewal notice was in the correct form. (§ 1024.37(e)(3) (opens new window))
13. If the credit union received evidence that the borrower had the required hazard insurance coverage in place, determine whether they performed all of the following within 15 days: (§ 1024.37(g) (opens new window))
    • Cancel the force-placed insurance;
    • Refund force-placed insurance premiums charges and fees for the period the coverage overlapped; and
    • Remove all force-placed charges and fees from the borrower’s account for the period the coverage overlapped.
14. Ensure all fees or charges assessed on the borrower related to force-placed insurance are bona fide and reasonable (except for charges subject to state regulation and charges authorized by the Flood Disaster Protection Act of 1973). (§ 1024.37(h) (opens new window))

General Servicing Policies, Procedures, and Requirements – § 1024.38 (opens new window)

Note: These exam procedures do not apply to “small servicers.”

1. Determine if the credit union maintains policies and procedures to ensure they do each of the following: (§§ 1024.38(a) and (b)(1) (opens new window)):
   • Provide accurate and timely disclosures to the borrower;
   • Investigate, respond to, and make corrections in response to borrowers’ complaints, including promptly obtaining information from service providers to investigate and if applicable correct errors resulting from actions of service providers;
   • Provide borrowers with accurate and timely information and documents in response to borrower requests for information about the borrower’s mortgage loan;
   • Provide owners and assignees of mortgage loans with accurate and current information and documents about all the mortgage loans they own, including information about the credit union’s evaluations of borrowers for loss mitigation options and loss mitigation agreements with borrowers;
   • Submit accurate and current information and documents that comply with applicable law during the foreclosure process;
   • Upon learning of a borrower’s death, promptly communicate with the borrower’s successor in interest about the secured property; and
   • Evaluate loss mitigation applications properly. (§§ 1024.38(b)(2) (opens new window)).
2. Determine if the policies and procedures ensure that the credit union does all of the following (§ 1024.38(b)(2) (opens new window)):
   • Provides accurate information regarding available loss mitigation options from the owner or assignee of the borrower’s loan;
   • Specifically identifies all loss mitigation options a borrower may be eligible for, including identifying, with respect to each owner or assignee, all of the loss mitigation options the credit union may consider when evaluating a borrower, as well as the criteria the credit union should apply for each option;
   • Provides the loss mitigation personnel assigned to the borrower’s mortgage loan pursuant to § 1024.40 (opens new window) with prompt access to all of the documents and information that the borrower submitted for loss mitigation option;
   • Identifies the documents and information a borrower must submit to complete a loss mitigation application; and
   • In response to a complete loss mitigation application, properly evaluates the borrower for all eligible loss mitigation options according to any requirements established by the owner or assignee of the mortgage loan, even if those requirements are beyond the requirements of § 1024.41 (opens new window).
3. Determine whether the credit union maintains policies and procedures for service provider oversight and compliance. (§§ 1024.38(a) and (b)(3) (opens new window))
4. Determine whether these policies and procedures ensure that the credit union: (§§ 1024.38(a) and (b)(3) (opens new window))
   • Provides appropriate personnel with access to accurate and current documents and information concerning the service providers’ actions;
   • Allows periodic reviews of service providers;
   • Allows sharing accurate and current information about the status of a borrower’s loss mitigation application and any foreclosure proceeding among appropriate credit union personnel. These include the loss mitigation personnel assigned to the borrower’s mortgage loan, and appropriate service provider personnel, including service provider personnel responsible for handling foreclosure proceedings; and
   • Transfers information properly during servicing transfers. (§§ 1024.38(b)(4) (opens new window))
5. Determine whether the credit union has policies and procedures that inform borrowers about procedures for submitting written error notices and written information requests. (§§ 1024.38(a) and (b)(5) (opens new window))
6. Determine whether these policies and procedures ensure that the credit union informs borrowers who are not satisfied with the credit union’s response to oral complaints or information requests about the procedures for submitting written error notices. (§§ 1024.35 (opens new window), 1024.36 (opens new window)).
7. Determine whether the credit union keeps mortgage records until one year after the loan is discharged or until the credit union transfers servicing for the mortgage loan to a transferee servicer. (§ 1024.38(c)(1) (opens new window))
8. For documents or information created on or after January 10, 2014, determine whether the credit union keeps the following five items for each mortgage loan file in a way that allows the credit union to compile them into a servicing file within five days (§ 1024.38(c)(2) (opens new window)):
   • A schedule of all credits and debits to the account (including escrow accounts and suspense accounts);
   • A copy of the security instrument that establishes the lien securing the mortgage loan;
   • Any notes created by credit union personnel regarding communications with the borrower concerning the account;
   • A report of the data fields for the borrower’s account created by the credit union’s electronic systems (if applicable); and
   • Copies of any information or documents the borrower provided to the credit union regarding written error notices or loss mitigation.

Early Intervention Requirements for Certain Borrowers – § 1024.39 (opens new window)

Note: These exam procedures do not apply to “small servicers.”

1. Determine if the credit union makes a good faith effort to establish live contact with the borrower within 36 days after each time the borrower becomes delinquent. (§ 1024.39(a) (opens new window))
2. Determine if after establishing live contact, the credit union promptly informed the borrower of loss mitigation options, if appropriate (based on the credit union’s discretion). (§ 1024.39(a) (opens new window))
3. Determine if the credit union sent a written notice to the borrower within 45 days after borrower became delinquent. (§ 1024.39(b)(1) (opens new window))
4. Ensure the written notice includes all of the following: (§ 1024.39(b)(2) (opens new window))
   • A statement encouraging the borrower to contact the credit union;
   • The telephone number to access assigned loss mitigation personnel;
   • A brief description of examples of loss mitigation options that may be available to the borrower (if applicable);
   • Instructions for completing the loss mitigation application or instructions on how to obtain more information about loss mitigation options (such as by contacting the credit union), if applicable; and
   • Either the CFPB’s or HUD’s website to access homeownership counselors or counseling organizations lists and HUD’s toll-free number to access homeownership counselors or counseling organizations.

Continuity of Contact – § 1024.40 (opens new window)

Note: These exam procedures do not apply to “small servicers.”

1. Ensure the credit union maintain policies and procedures to assign personnel to a delinquent borrower by the time the written early intervention notice was provided, and in any event, within 45 days after the borrower became delinquent. (§ 1024.40(a) (opens new window)(1))
2. Ensure the credit union maintains policies and procedures to ensure the assigned personnel’s availability, via telephone, to answer the borrower’s questions and (as applicable) assist the borrower with available loss mitigation options until the borrower has made, without incurring a late charge, two consecutive mortgage payments according to the terms of a permanent loss mitigation agreement. (§ 1024.40(a)(2) (opens new window))
3. Ensure that the credit union’s policies and procedures ensure that if a borrower contacts the assigned personnel and does not immediately receive a live response, the credit union can provide a live response in a timely manner. (§ 1024.40(a)(3) (opens new window))
4. Determine whether the assigned personnel can perform all of the following tasks: (§ 1024.40(b) (opens new window))
   • Provide the borrower with accurate information about available loss mitigation options, including the steps the borrower must take to be evaluated for those options, including how to complete a loss mitigation application or appeal a denial of a loan modification option (if applicable);
   • Provide the borrower with accurate information about the status of any loss mitigation application submitted;
   • Provide the borrower with accurate information about the circumstances when the credit union may refer the account to foreclosure;
   • Provide the borrower with accurate information about loss mitigation deadlines;
   • Timely retrieve a complete record of the borrower’s payment history and all written information the borrower has provided to the credit union (or the credit union’s predecessors) regarding a loss mitigation application, and provide these documents to other persons required to evaluate the borrower for available loss mitigation options; and
   • Provide the borrower with information about submitting a written error notice or written request for information.

Loss Mitigation Procedures – § 1024.41 (opens new window)

Note: These exam procedures do not apply to “small servicers.”

1. Interview credit union personnel to determine whether they understand the required loss mitigation procedures. Ensure they are aware that these only apply to loans secured by the borrower’s principal residence and not to reverse mortgage loans.
2. Ensure that if the credit union received a complete application, they provided acknowledgement to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after receiving the loss mitigation application.
3. Ensure the written acknowledgement includes all of the following: (§ 1024.41(b)(2) (opens new window))
   • States whether the application was complete or incomplete;
   • Identifies the additional information needed to complete the application;
   • Identifies a reasonable date by which the borrower must submit the additional information; and
   • Includes a statement that the borrower should contact servicers of any mortgage loans secured by the same property to discuss loss mitigation options.
4. Upon discovering that additional information or corrected documents were required to complete the application, ensure the credit union does the following: (§ 1024.41(c)(2)(iv) (opens new window))
   • Promptly requests the missing information or corrected documents; and
   • Gives the borrower a reasonable date by which to complete the application.
5. If the credit union receives a completed loss mitigation application more than 37 days before a foreclosure sale, then within 30 days, ensure the credit union:
   • Evaluated the borrower for all available loss mitigation options; and (§ 1024.41(c)(1)(i) (opens new window)).
   • Provided the borrower with a notice stating the following:
     • Which loss mitigation options (if any) the credit union would offer the borrower (§ 1024.41(c)(1)(ii) (opens new window)),
     • The amount of time the borrower has to accept or reject an offered loss mitigation option pursuant to §§ 1024.41(c)(1)(ii) (opens new window) and 1024.41(e) (opens new window), and
     • If applicable, that the borrower has the right to appeal a denial of a loan modification option and the time period for making any appeal under § 1024.41(h) (opens new window).
6. Determine whether the credit union exercised reasonable diligence in obtaining documents and information to complete the application (§ 1024.41(b)(1) (opens new window)).
7. If the credit union offered the borrower a short term forbearance plan based upon information contained in an incomplete loss mitigation application, and the borrower is performing under the plan, ensure the credit union refrained from any one of the following: (§ 1024.41(c)(2)(iii) (opens new window))
   • Making the first notice of filing for any judicial or non-judicial foreclosure process;
   • Moving for foreclosure judgment or an order of sale; or
   • Conducting a foreclosure sale.
8. If an application was facially complete, but later the servicer requested additional needed information, ensure the credit union treated the borrower’s application as complete for purposes of § 1024.41(f)(2) (opens new window) (“Application received before foreclosure referral”) and § 1024.41(g) (opens new window) (“Prohibition on foreclosure sale”) until the borrower was given a reasonable opportunity to submit additional information or corrected documents. (§ 1024.41(c)(2)(iv) (opens new window)).
9. Review denied loss mitigation applications. Determine if the credit union sent a notice stating the specific reason or reasons for the denial, and, if applicable, that the borrower was not evaluated on other criteria. (§ 1024.41(d) (opens new window))
10. If the credit union offered a loss mitigation option and received the complete application at least 90 days before a foreclosure sale, determine if they provided the borrower with at least 14 days to accept or reject any offered loan modification option after the servicer notified the borrower about the offer. (§ 1024.41(e) (opens new window))
11. If the credit union offered a loss mitigation option and received the complete application fewer than 90 days before a foreclosure sale but more than 37 days before the sale, ensure the credit union provided the borrower with at least 7 days to accept or reject any offered loss mitigation options after the servicer notified the borrower about the offer. (§ 1024.41(e)(1) (opens new window))
12. If the credit union offered a borrower a trial modification plan and the borrower did not respond within seven or 14 days determine if the credit union:
    • Found out if the borrower submitted payments in accordance with the offered plan; and
    • If so, determine if the credit union gave the borrower a reasonable period of time to fulfill any remaining requirements to accept the plan. (§ 1024.41(e)(2)(ii) (opens new window))
13. To extend the acceptance period, if within 14 days, determine if the credit union allowed the borrower to appeal a denial of any loan modification option. (§ 1024.41(e)(2)(iii) (opens new window))
14. In the event of an appeal, ensure the borrower’s time for acceptance was extended to 14 days after the credit union provided a notice of its determination of the appeal under § 1024.41(e)(2)(iii) (opens new window).
15. Ensure the borrower meet any one of these conditions prior to the credit union making any first judicial or non-judicial foreclosure notices or filings: (§ 1024.41(f)(1) (opens new window))
    • The borrower was more than 120 days delinquent;
    • The foreclosure is based on a borrower’s violation of a due-on-sale clause; and
    • The credit union is joining the foreclosure action of a subordinate lienholder.
16. For applications received during a pre-foreclosure period, determine if the credit union made the first foreclosure notice or filing only after any of the following: (§ 1024.41(f)(2) (opens new window))
    • The credit union notified the borrower of his or her ineligibility for any loss mitigation option and, if an appeal was available, the appeal period expired or the appeal was denied;
    • The borrower rejected all the offered loss mitigation options; or
    • The borrower did not perform under a loss mitigation agreement.
17. Ensure the credit union refrained from improperly conducting a foreclosure sale or moving for foreclosure judgment before any of the following: (§ 1024.41(g) (opens new window))
    • The credit union notified the borrower that it had denied the loss mitigation application and, if an appeal was available, either the appeal period expired or the appeal was denied;
    • The borrower rejected all the offered loss mitigation options; or
    • The borrower did not perform under a loss mitigation agreement.

Rules for Small Servicers

1. Determine if the credit union refrains from making the first foreclosure notice or filing before the borrower is more than 120 days delinquent, unless the foreclosure is based on a borrower’s violation of a due-on-sale clause or the servicer is joining a subordinate lienholder’s foreclosure action. (§ 1024.41(j) (opens new window))

Review Considerations

Review Considerations

Review Area	Requirements / Recommendations
Policy/Procedures	Adopt policy and comprehensive procedures for implementing RESPA, including an explanation of the coverage of the regulation, exemptions, disclosure requirements, Section 8 prohibitions, escrow and force-placed insurance rules, servicing standards, and other related requirements.
Coverage	RESPA applies to “federally-related mortgage loans,” which includes, for example, any loan: Made by a lender that is regulated by, or whose deposits are insured by, the federal government; Secured by a first or subordinate lien on residential real property (including a refinance of such a loan); Secured by property designed principally for occupancy of one to four families; and Located in a state. Note: An installment sales contract, land contract, or contract for deed may also constitute a federally related mortgage loan. Exemptions: Business purpose loans; Temporary financing such as construction loans without permanent-end financing or not involving the transfer of title to land (note exceptions); Bridge loans or swing loans; Loan secured by vacant land unless a building is constructed or placed on the property using loan proceeds; Assumptions without lender approval; Conversion of a federally related mortgage loan to different terms where no new note required; and Secondary market transactions (not including “table funded” transactions).
Special Information Booklet	Provide loan applicants with the Special Information Booklet called “Your Home Loan Toolkit”, describing the nature and costs of settlement services. Note: If a borrower uses a mortgage broker, the mortgage broker must provide the booklet and the lender need not do so. In the case of open-end credit plan (HELOCs) subject to Regulation Z, a lender should provide brochure entitled “When Your Home is on the Line: What You Should Know About Home Equity Lines of Credit” instead of the booklet. No booklet required for: Refinancing transactions; Closed-end subordinate lien loans; Reverse mortgages; and Any other mortgage loan not involving a 1-4 family residential purchase.
Good Faith Estimate	For transactions not covered by TRID or otherwise noted, provide loan applicants with GFE showing loan information and categories of settlement charges the borrower is likely to incur for the settlement. This document should be prepared according to the regulatory requirements. If the borrower is allowed to shop for third-party settlement services, the loan originator must provide the borrower with a written list of settlement services providers at the time of the GFE, on a separate sheet of paper. Mortgage brokers and dealer loans: If mortgage broker provides GFE, lender need not, but lender is bound by disclosures on GFE provided by broker. In the case of dealer loans, lender must provide GFE or ensure that the dealer provides it. For open-end lines of credit (home equity plans) covered under Regulation Z, no GFE need be given if disclosures required by § 1026.40 (opens new window) are provided to borrower. Revised GFE may be given when “changed circumstances” or “borrower-requested changes” cause charges to increase. May not require, as a condition of providing GFE, that applicant submit documentation to verify application.
+HUD-1 / HUD-1A Settlement Statement	Other than for transactions covered by TRID or otherwise noted, a HUD-1 or HUD-1A (if no seller involved) Settlement Statement must be used in every settlement involving a federally related mortgage loan, setting charges in categories to match the GFE for all charges imposed on borrower and seller by the lender. The HUD-1 or HUD-1A must be completed according to the instructions in Appendix A (opens new window) of Regulation X. Charges on HUD-1 or HUD-1A must not exceed those on GFE beyond application tolerances; if not, the lender must refund the excess to the borrower. The HUD-1 or HUD-1A is not required for open-end lines of credit (home equity plans) covered by the Truth in Lending Act and Regulation Z.
No Fee<	No fee can be charged by a lender for preparing the HUD-1 or HUD-1A Settlement Statement, escrow account statements, or required Truth-in- Lending disclosures.
Kickbacks and Unearned Fees	Ensure that the prohibition against kickbacks and fee-splits regarding settlement services is accurately reflected in the policy statement and is adhered to by all personnel involved in originating or processing federally-related mortgage loans. No referral fees. No splitting charges except for actual services performed. (See § 1024.14 (opens new window)) Note regulatory exemptions for: Fees, salaries, or other consideration as described in Regulation X. “Affiliated Business Arrangements” (defined in Section 3 of RESPA (12 USC 2602 (opens new window))) allowed if three specific conditions are met: Separate written disclosure using the format in Appendix D specifying the nature of the relationship and estimating charges for the referral; No requirement to use any particular provider (except that a lender may chose the attorney, credit reporting agency, and/or real estate appraiser); The only thing of value received other than payments for services actually rendered is a return on an ownership or franchise relationship. (See § 1024.15 (opens new window))
Affiliated Business Arrangement	In the case of “affiliated business arrangements,” the person making the referral must provide a written disclosure to each person whose business is referred at the time of referral or the time the GFE is given (if the lender makes the referral). This disclosure must be provided on a separate sheet of paper. The disclosure is designed to (i) specify the relationship between the parties giving and receiving the referral and (ii) describe the estimated charges generally made by the provider of settlement services. An “affiliated business arrangement” is an arrangement in which: (1) a person who is in a position to refer settlement business or an associate of the person has either an affiliate relationship with or an ownership interest of more than one percent in a provider of settlement services and (2) either of such persons refers business to that provider or positively influences the selection of that provider.
Record Retention	Keep documents showing any reason for providing a revised GFE. Keep copy of completed HUD-1 or HUD-1A and related documents (until transfer to new owner or loan or new servicer) Keep documents provided according to § 1024.14 (opens new window) (Prohibition Against Kickbacks and unearned Fees). Keep documents provided according to § 1024.15 (opens new window) (Affiliated Business Arrangements). Keep records showing the handling of each borrower’s escrow account. Unless a “small servicer,” must keep records that document actions taken regarding a borrower's mortgage loan account until one year after a mortgage loan is discharged or servicing of a mortgage loan is transferred by the servicer to a transferee servicer. Although not specified in Regulation X, keeping other notices and disclosures such as the Servicing Transfer Notice and the Good Faith Estimate is recommended.
Directing Use of Title Company	If a lender holds legal title to property being sold, the lender as seller may not directly or indirectly require the borrower to purchase title insurance from any particular title company as condition for selling the property.
Escrow Accounts	When a borrower is required to make payments into an escrow account to pay taxes, insurance premiums, or other charges with respect to a federally related mortgage loan, the lender must: Provide an Initial Escrow Statement (may be included in HUD-1 or HUD-1A), other than for transactions covered by TRID. (See §§ 1024.17(g) and (h) (opens new window) for required information and format.) Provide an Annual Escrow Statement. (See §§ 1024.17(i) and (j) (opens new window) for required information and format.) Follow limits on amounts which may be required to be paid into escrow. Conduct escrow account analysis at closing and end of computation year to determine payments into escrow. Shortages/Deficiencies/Surpluses If escrow analysis shows a shortage or a deficiency, choose one of options provided in § 1024.17(f) (opens new window). Notify borrower at least annually of the shortage or deficiency in the escrow account. The notice may be part of the annual escrow account statement or it may be a separate document. If escrow analysis shows surplus, must provide refund to borrower if more than $50. Ensure that all payments from escrow accounts are made in a timely manner. Note special rule for paying hazard insurance premiums from escrow account, even when borrower is delinquent. Determine whether small servicer exception applies. Adhere to aggregate accounting method. Note that § 1024.17 (opens new window) sets out detailed requirements for establishing and maintaining escrow accounts, including acceptable accounting methods that may be used.
Homeownership Counseling Organization List	Provide borrower list of organizations from website maintained by the CFPB, or from data made available by the CFPB or HUD. § 1024.20 (opens new window)
Servicing Disclosure Statement	Provide loan applicants with a Servicing Disclosure Statement which explains the process of transferring servicing rights in the form described in § 1024.33 (opens new window). All servicing disclosures must be clear and conspicuous, in writing, and in a form that the recipient can keep. Electronic disclosures that comply with E-Sign are allowed.
Servicing Transfer Notice	If servicing is assigned, sold or transferred, both the transferor and transferee servicers must provide either separate notices or a combined notice of the transfer to the borrower in the manner showing the regulation. An extended notice period is allowed when the transfer of servicing is preceded by: Termination of the loan servicing contract for cause; Commencement of proceedings for bankruptcy of the servicer; or The NCUA proceedings for conservatorship or receivership of the servicer. Special provisions apply for the transfer of servicing, relating to: Treatment of loan payments during transfer period; Protection of credit rating.
Borrower Notice of Error	Implement procedures for responding promptly to borrower error notices.
Borrower Request for Information	Implement procedures for responding promptly to borrower request for information.
Force-Placed Insurance	Provide notices and follow procedures required before imposing a charge for force-placed insurance on borrower according to § 1024.37 (opens new window).
Servicing Obligations	Unless a “small servicer,” establish servicing policies, early intervention practices, continuity of contact, loss mitigation, and foreclosure requirements under §§ 1024.38 – 1024.41 (opens new window). If a small servicer, implement applicable foreclosure suspension rules under § 1024.41 (opens new window).
Training	Training employees involved in the origination or processing of federally related mortgage loans or whose duties are otherwise impacted by the requirements of RESPA and Regulation X.
Updating	Update policies, procedures, disclosures, and notices as necessary to show changes in the regulation or changes in equipment or internal operations / processes as appropriate. Ensure effective communication and distribution of updated notices and disclosures.
Internal Review	Conduct an internal review at least once a year to test compliance with the regulation and conformity of a credit union’s practices with its policies and procedures.

REAL ESTATE SETTLEMENT PROCEDURES (RESPA) REGULATION X EXAMINATION CHECKLIST

RESPA Compliance Readiness

RESPA Compliance Readiness

Item	Description	Yes	No	N/A
1	Do written loan policies regarding federally related mortgage loans comply with RESPA?
2	Does the credit union have operating procedures that address RESPA?
3	Do mortgage lending personnel know about the requirements of RESPA?

Special Information Booklet

Special Information Booklet

Item	Description	Yes	No	N/A
4	For purchases of 1-4 family homes, is the Special Information booklet, called “Your home loan toolkit,” provided within three business days after the credit union or broker receives or prepares a written application for a first lien closed-end loan? (§ 1024.6 (opens new window))

Good Faith Estimate - For transactions not covered by TRID

Good Faith Estimate - For transactions not covered by TRID

Item	Description	Yes	No	N/A
5	For transactions not covered by TRID, does the credit union use the standard/required Good Faith Estimate (GFE)?
6	Is a GFE of charges for settlement services, if required, provided within three business days after receiving an application or enough information to complete an application by the lender or mortgage broker? (§ 1024.7(a)) (opens new window)
7	Does the GFE appear in the exact form required by Appendix C (opens new window)? (§ 1024.7(d) (opens new window))
8	Does the GFE contain the following elements:
8(a)	Interest rate expiration date?
8(b)	Settlement charges expiration date?
8(c)	Rate lock period?
8(d)	Number of days before settlement the interest rate must be locked, if applicable?
8(e)	Summary of loan information?
8(f)	Escrow account information?
8(g)	Estimates for settlement charges?
8(h)	Left-hand column on trade-off table completed for loan in the GFE?
8(i)	For all loans, are all third-party fees, including those paid by the credit union in the case of no-cost loans, itemized and listed in the appropriate blocks on the second page of the GFE?
8(j)	Did the credit union provide a separate sheet that identifies the settlement service providers for the services listed? (§§ 1024.7 (opens new window), Appendix C (opens new window))
9	If the credit union provided a revised GFE because of changed circumstances, borrower-requested changes, or interest-rate-dependent changes, did it issue a new GFE within three business days of receiving enough information to establish changed circumstances, and did the new GFE reflect only permissible changes? (§ 1024.7(f)) (opens new window)

Uniform Settlement Statement (HUD-1 or HUD-1A) - Other than for transactions covered by TRID

Uniform Settlement Statement (HUD-1 or HUD-1A) - Other than for transactions covered by TRID

Item	Description	Yes	No	N/A
10	Other than for transactions covered by TRID, does the credit union use the appropriate Uniform Settlement Statement (HUD-1 or HUD-1A)? (§§ 1024.8 (opens new window), Appendix A (opens new window))
11	Does the HUD-1 or HUD-1A contain the following?	N/A	N/A	N/A
11(a)	Charges properly itemized for both borrower and seller according to the instructions for completing the HUD-1 or HUD-1A?
11(b)	All charges paid to someone other than the lender, itemized and with the recipient named?
11(c)	Itemized charges imposed by the lender and any sales commissions paid by the borrower or seller outside of closing, identified as “paid outside of closing” or “POC” and not included in totals?
11(d)	When an average charge was listed for a settlement service, was the charge calculated according to the requirements in § 1024.8(b)(2) (opens new window)?
12	From a review of the HUD-1 or HUD-1A prepared for each GFE reviewed, are amounts shown on the GFE the same as the fees actually paid by the borrower? (§ 1024.7(i)) (opens new window)
13	If a charge stated on the HUD-1 or HUD-1A exceeds the charges stated on the GFE by more than the permitted tolerance, does the credit union cure the tolerance violation by reimbursing the borrower the amount the tolerance was exceeded at settlement, or by delivering or placing the payment in the mail within 30 calendar days after settlement? (§ 1024.7(i) (opens new window))
14	If the credit union conducts settlement:	N/A	N/A	N/A
14(a)	Is the borrower, upon request, allowed to inspect the HUD-1 or HUD-1A at least one day before settlement? (§ 1024.10(a)) (opens new window)
14(b)	Is the HUD-A or HUD-1A provided to the borrower and seller at or before settlement? (§ 1024.10(b)) (opens new window)
14(c)	In cases when the right to delivery is waived or the transaction is exempt, is the statement mailed as soon as possible after settlement? (§§ 1024.10(b), (c), and (d)) (opens new window)
15	If there is an accidental or technical error on the HUD-1 or HUD-1A, does the credit union provide a revised HUD-1 or HUD-1A to the borrower within 30 calendar days after settlement? (§ 1024.8(c)) (opens new window)
16	If the credit union retains its interest in the mortgage and/or services it, is the HUD-1 or HUD-1A form kept for five years? (§ 1024.10(e)) (opens new window)
17	If the credit union disposes of its interest in the mortgage and does not service the loan, is the HUD-1 or HUD-1A transferred to the new asset owner with the loan file? (§ 1024.10(e)) (opens new window)

Payment or Receipt of Referral or Unearned Fees

Payment or Receipt of Referral or Unearned Fees

Item	Description	Yes	No	N/A
20	Is credit union management aware of the prohibitions against payments or receipt of kickbacks and unearned fees? (§ 1024.14) (opens new window)
21	Are federally related mortgage loan transactions referred by brokers, affiliates, or other parties? (§ 1024.14) (opens new window)
21(a)	OR Does the credit union refer services to brokers, affiliates, or other parties?
22	If fees were paid to the credit union or any parties identified, were all fees paid to the broker, affiliate, service provider, or other party for goods or facilities furnished or services performed? (§ 1024.14(g)) (opens new window)
23	Is the compensation the lender receives in connection with an Affiliated Business Arrangement limited to a return on an ownership interest or other amounts permissible under RESPA? (§ 1024.15(b)) (opens new window)

Affiliated Business Agreements

Affiliated Business Agreements

Item	Description	Yes	No	N/A
24	Does the credit union refer borrowers to affiliated settlement service providers?
25	If the credit union refers borrowers to affiliated settlement service providers, is the Affiliated Business Disclosure statement provided to each borrower according to Appendix D (opens new window)? (§ 1024.15(b)(1)) (opens new window)
26	Other than an attorney, credit reporting agency, or appraiser representing the lender, does the credit union prohibit requiring the borrower use an affiliate? (§ 1024.15(b)(2)) (opens new window)

Required Title Insurance as Condition of Sale

Required Title Insurance as Condition of Sale

Item	Description	Yes	No	N/A
27	When the credit union owns the property being sold, does it ensure that it does not require the borrower to purchase title insurance for a particular company as a condition of the sale? (§ 1024.16) (opens new window)

Escrow Accounts

Escrow Accounts

Item	Description	Yes	No	N/A
28	Does the credit union perform an escrow analysis at the creation of the escrow account? (§ 1024.17) (opens new window)
29	Other than for transactions covered by TRID, is the initial escrow statement given to the borrower at settlement or within 45 calendar days after the escrow account is established? (§ 1024.17) (opens new window)
30	Does the initial escrow statement itemize:	N/A	N/A	N/A
30(a)	Amount of monthly mortgage payment?
30(b)	Portion of the monthly payment being placed in escrow?
30(c)	Charges to be paid from the escrow account during the first 12 months?
30(d)	Disbursement date?
30(e)	Amount of cushion?
31	Is the annual escrow statement provided within 30 days of the end of the escrow account computation year? (§ 1024.17) (opens new window)
32	Does the annual escrow statement itemize:	N/A	N/A	N/A
32(a)	Current mortgage payment and portion going to escrow?
32(b)	Amount of last year’s mortgage payment and portion that went to escrow?
32(c)	Total amount paid into the escrow account during the past computation year?
32(d)	Total amount paid from the escrow account during the past year for taxes, insurance premiums, and other charges?
32(e)	Balance in the escrow account at the end of the period?
32(f)	Explanation of how any surplus is handled?
32(g)	Explanation of how any shortage or deficiency will be paid by the borrower?
33	If applicable, the reason(s) why the estimated low monthly balance was not reached? (§ 1024.17(i)(1)(viii)) (opens new window)
34	Are monthly escrow payments following settlement no larger than 1/12 of the amount expected to be paid for taxes, insurance premiums, and other charges in the following 12 months, plus 1/6 of the total annual payments from the account? (§ 1024.17(c)(1)(ii)) (opens new window)
35	Does the servicer notify the borrower at least annually if there is a shortage in the escrow account? (§ 1024.17(f)(5)) (opens new window)

Force-Placed Insurance

Force-Placed Insurance

Item	Description	Yes	No	N/A
36	Was the credit union permitted to purchase forced placed insurance for a borrower who had established an escrow account for the payment of hazard insurance under § 1024.17(k)(5) (opens new window)?
37	If the credit union is a “small servicer,” was the cost charged to each borrower of the force-placed insurance less than the amount the credit union would have needed to disburse from the borrower’s escrow account to ensure that hazard insurance charges were paid in a timely manner? (§ 1024.17(k)(5)(iii)) (opens new window)

List of Home Ownership Counseling Organizations

List of Home Ownership Counseling Organizations

Item	Description	Yes	No	N/A
38	Does the credit union provide applicants a list of home ownership counseling agencies within three business days of receiving an application? (§ 1024.20(a) (opens new window))
39	Does the credit union obtain the list of home ownership counseling agencies from the CFPB’s or HUD’s website and is the list obtained no more than 30 days prior to the time the list was provided to the applicant? (§ 1024.20(a) (opens new window))
40	For HELOCs, does the credit union comply with either the three business day timeframe or with Regulation Z’s timeframe listed in § 1026.40(b) (opens new window)? (§ 1024.20(b) (opens new window))

Mortgage Servicing Statement Disclosure

Mortgage Servicing Statement Disclosure

Item	Description	Yes	No	N/A
41	Is the language in the mortgage servicing disclosure statement substantially the same as the model disclosure in Appendix MS-1 (opens new window)?
42	Does the lender provide the mortgage servicing disclosure statement within three business days after receiving the application? (§ 1024.33(a)) (opens new window)
43	Does the disclosure state whether the loan may be assigned or transferred while outstanding? (§ 1024.33(a)) (opens new window)

Notice to Borrower of Transfer of Mortgage Servicing

Notice to Borrower of Transfer of Mortgage Servicing

Item	Description	Yes	No	N/A
44	If the credit union has transferred servicing rights, was the borrower notified at least 15 days prior to the effective date of the transfer? (§ 1024.33) (opens new window)
45	If the credit union has received servicing rights, was the borrower notified within 15 days after the effective date of the transfer? (§ 1024.33) (opens new window)
46	Does the notice by transferor and transferee include the following information as contained in Appendix MS-2 (opens new window)?	N/A	N/A	N/A
46(a)	The effective date of the transfer?
46(b)	The new servicer’s name, address, and toll-free or collect call telephone number of the transferor servicer?
46(c)	A toll-free or collect call telephone number of the present servicer to answer questions about the transfer?
46(d)	The date the present servicer will stop accepting payments and the date the new servicer will begin accepting payments for the transferred loan?
46(e)	Any information about the effect of the transfer on the availability of terms of optional insurance and any action the borrower must take to maintain coverage?
46(f)	A statement that the transfer does not affect the terms or conditions of the mortgage other than terms directly related to its servicing?
47	Does the credit union ensure that no late fees are imposed during the 60 days following a transfer of servicing and that no timely payments are treated as late when the transferor receives them instead of the transferee? (§ 1024.33) (opens new window)

Responding to Borrower Inquiries

Responding to Borrower Inquiries

Item	Description	Yes	No	N/A
48	Are qualified written requests addressed under the credit union’s procedures for responding to Borrower Notice of Errors or Borrower Requests for Information? (§ 1024.36) (opens new window)

Subpart C – Mortgage Servicing

Mortgage Servicing Transfer Disclosures – § 1024.33 (opens new window)

Mortgage Servicing Transfer Disclosures – § 1024.33

Item	Description	Yes	No	N/A
49	Did the credit union provide a servicing disclosure statement to the borrower within three days (excluding legal public holidays, Saturdays, and Sundays) after receiving the application?

Transfers of Mortgage Servicing Rights – Disclosures

Transfers of Mortgage Servicing Rights – Disclosures

Item	Description	Yes	No	N/A
50	Was the notice of mortgage servicing transfer sent to the borrower at least 15 days before the transfer? (§ 1024.33(b)(3)) (opens new window)
51	If the credit union received mortgage servicing rights for a loan, did it notify the borrower within 15 days after the transfer occurred? (§ 1024.33(b)(3)) (opens new window)
52	Does the notice sent by the credit union include the following information: (§ 1024.33(b)(4)) (opens new window)	N/A	N/A	N/A
52(a)	The effective date of the transfer?
52(b)	The name, address, and toll-free or collect-call telephone number for an employee or department of the transferee servicer that the borrower can call for answers to servicing transfer inquiries?
52(c)	The date the transferor servicer will stop accepting payments for the loan and the date the transferee servicer will begin to accept payments. The dates must either be the same or consecutive?
52(d)	Whether the transfer will affect the terms or the availability of optional insurance and any action the borrower must take to maintain such coverage?
52(e)	A statement that the transfer does not affect the terms or conditions of the mortgage (except as directly related to servicing) (Appendix MS-2 (opens new window))?
53	Was the notice by the transferor and transferee sent to the borrower’s address listed in the mortgage loan documents, unless the borrower notified the credit union of a new address according to the credit union’s requirements? (Comment 1024.33(b)(3)(1)) (opens new window)

Transfers of Mortgage Servicing Rights – Treatment of Post-Transfer Payments

Transfers of Mortgage Servicing Rights – Treatment of Post-Transfer Payments

Item	Description	Yes	No	N/A
54	Did the credit union not treat as late any payments the borrower sent to the wrong party within 60 days of the transfer? (§ 1024.33(c)(1)) (opens new window)
55	Did the transferor servicer either:	N/A	N/A	N/A
55(a)	Forward the payment to the transferee servicer?
55(b)	Return the payment and informed the payer where to send the payment if the borrower sent any payment within 60 days of the transfer? (§ 1024.33(c)(2)) (opens new window)

Timely Escrow Payments and Treatment of Escrow
Account Balances – § 1024.34 (opens new window)

Timely Escrow Payments and Treatment of Escrow Account Balances – § 1024.34

Item	Description	Yes	No	N/A
56	Did the credit union made payments from the escrow account in a timely manner? (§ 1024.34) (opens new window)
57	Did the credit union return amounts remaining in escrow within 20 days (excluding legal public holidays, Saturdays, and Sundays) after the borrower paid the mortgage loan in full? (§ 1024.34(b)) (opens new window)

Error Resolution Procedures – § 1024.35 (opens new window)

Address for Error Notices

Address for Error Notices

Item	Description	Yes	No	N/A
58	If the credit union gives a specific address to receive notice of errors, did it notify the borrower in writing that the borrower must use that address? (§ 1024.35(c)) (opens new window)
59	Did the credit union also provided that address to the borrower in each of the following three types of communications:	N/A	N/A	N/A
59(a)	Any periodic statement or coupon book required by § 1026.41 (opens new window)?
59(d)	Any website the credit union maintains for servicing the loan?
59(c)	Any notice required by §§ 1024.39 (opens new window) (early intervention) or 1024.41 (opens new window) (loss mitigation) that includes contact information for assistance? (Comment 1024.35(c)(2)) (opens new window)
60	Was the same address given by the credit union for receiving information requests? (§§ 1024.36(b) (opens new window) and 1024.35(c) (opens new window))
61	Was the credit union’s electronic method for submitting error notices—if used—in addition to, and not instead of, any process for receiving error notices by mail? (Comment 1024.35(c)(4)) (opens new window)

Acknowledgement of Error Notices

Acknowledgement of Error Notices

Item	Description	Yes	No	N/A
62	Did the credit union properly acknowledged the error notice by providing written acknowledgement to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after receiving an error notice? (§ 1024.35(d)) (opens new window)
63	If an acknowledgment was not given, was it not required for one of the following reasons:	N/A	N/A	N/A
63(a)	The credit union corrected the errors asserted and notified the borrower in writing within five days (excluding legal public holidays, Saturdays, and Sundays) of receiving the error notice? (§ 1024.35(f)) (opens new window)
63(b)	The credit union determined that it was not required to respond and provided written notice, with the reason for its decision not to take any action, to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination? (§ 1024.35(g)) (opens new window)
63(c)	The error notice related to violations of certain loss mitigation procedures under § 1024.35(b)(9) or (10) (opens new window) and the credit union received it seven or fewer days before a foreclosure sale?

Response to Error Notices

Response to Error Notices

Item	Description	Yes	No	N/A
64	Did the credit union properly responded to a borrower’s written error notice by either:	N/A	N/A	N/A
64(a)	Correcting the errors identified by the borrower as well as any other errors that were discovered during the investigation and providing written notice to the borrower of the corrections, the date the corrections took effect, and contact information for further assistance?
64(b)	Conducting a reasonable investigation and providing the borrower with a written notice stating that the credit union has determined that no error occurred, the reasons for its determination, the borrower’s right to request documents the credit union relied on in reaching its determination and how to do so, and contact information for further assistance? (§ 1024.35(e)) (opens new window)
65	AND If the alleged error was a failure to provide an accurate payoff balance amount, did the credit union responded within seven days (excluding legal public holidays, Saturdays, and Sundays)? (§ 1024.35(e)(3)(A)) (opens new window)
65(a)	If the alleged error was either (1) making the first notice or filing for a judicial or non-judicial foreclosure process in violation of § 1024.41(f) or (j) (opens new window), or (2) moving for foreclosure judgment or order of sale or conducting a foreclosure sale in violation of § 1024.41(g) or (j) (opens new window), did the credit union respond by either of 30 days (excluding legal public holidays, Saturdays, and Sundays) or the date of a foreclosure sale, whichever comes first? (§ 1024.35(e)(3)(B)) (opens new window) Note: If the credit union received the error notice seven or fewer days before a foreclosure sale, the credit union is not required to respond in writing, but must make a good faith attempt to respond orally or in writing to the borrower and either correct the error or state the reason the credit union determined that no error occurred (§ 1024.35(f)(2)) (opens new window)
65(b)	For all other alleged errors, did the credit union respond within 30 days (excluding legal public holidays, Saturdays, and Sundays) unless, before the expiration of that 30-day period, the credit union extended the time for responding by an additional 15 days (excluding legal public holidays, Saturdays, and Sundays) by notifying the borrower in writing of the extension and the reasons for it? (§ 1024.35(e)(3)) (opens new window)
66	If the credit union did not respond, did it determine that the above responses were not required because either:	N/A	N/A	N/A
66(a)	The credit union corrected the errors asserted and notified the borrower in writing within five days (excluding legal public holidays, Saturdays, and Sundays) of receiving the error notice? (§ 1024.35(f)) (opens new window)
66(b)	The credit union determined that it was not required to respond and provided written notice, with the reason for its decision not to take any action, to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination? (§ 1024.35(g)) (opens new window)
66(c)	The error notice related to violations of certain loss mitigation procedures under § 1024.35(b)(9) or (10) (opens new window) and was received by the credit union seven or fewer days before a foreclosure sale. For such error notices, the credit union must make a good faith attempt to respond orally or in writing to the borrower and either correct the error or state the reason the credit union determined that no error occurred? (§ 1024.35(f)(2)) (opens new window)

Determination that No Error Occurred

Determination that No Error Occurred

Item	Description	Yes	No	N/A
67	Was the supporting documentation the credit union relied up to determine that no error occurred provided to the borrower within 15 days (excluding legal public holidays, Saturdays, and Sundays) of the borrower’s request? (§ 1024.35(e)(4)) (opens new window)
68	Was written notification provided to the borrower within 15 days (excluding legal public holidays, Saturdays, and Sundays) if the credit union withheld documents that included confidential, proprietary, or privileged information? (§ 1024.35(e)(4)) (opens new window)

Determination that No Response was Required

Determination that No Response was Required

Item	Description	Yes	No	N/A
69	Was it determined that one of the following three exemptions applied—nullifying the credit union’s requirement to respond:	N/A	N/A	N/A
69(a)	The error asserted is substantially the same as an error previously asserted by the borrower that the credit union already complied with? (§ 1024.35(d)) (opens new window)
69(b)	The error notice was overbroad?
69(c)	The error notice was untimely?

Asserted Errors Related to Non-Bona Fide Fees

Asserted Errors Related to Non-Bona Fide Fees

Item	Description	Yes	No	N/A
70	If a borrower alleged that a fee or charge that the credit union imposed lacked a reasonable basis, was there a reasonable basis for the imposition of a fee by the credit union? (§ 1024.35(b)(5)) (opens new window)

Impermissible Fees and Conditions and Other Restrictions

Item	Description	Yes	No	N/A
71	Did the credit union not require the borrower to provide supporting documents as a condition of investigating the alleged error? (§ 1024.35(e)(2)(i)) (opens new window)
72	Did the credit union refrain from determining that no error occurred without conducting a reasonable investigation due to the borrower’s failure to provide any requested information? (§ 1024.35(e)(2)(ii)) (opens new window)
73	Did the credit union not charge a fee or require the borrower to make any payments as a condition to responding to an error notice? (§ 1024.35(h)) (opens new window)
74	Did the credit union not provide any adverse information about a payment to a consumer reporting agency within 60 days of receiving an error notice on the payment? (§ 1024.35(i)) (opens new window)

Requests for Information – § 1024.36 (opens new window)

Address for Information Requests

Address for Information Requests

Item	Description	Yes	No	N/A
75	If the credit union gave a specific address for requests for information, did the credit union provide written notice of the address where the borrower must send information requests, along with a statement informing the borrower that the provided address must be used to request information? (§ 1024.36(b)) (opens new window)
76	Did the credit union provide the borrower with the address in each of the following communications:	N/A	N/A	N/A
76(a)	Any periodic statement or coupon book required under 12 CFR § 1026.41 (opens new window)?
76(c)	Any website the credit union maintains for servicing the loan?
76(d)	Any notice required by §§ 1024.39 (opens new window) (early intervention) or 1024.41 (opens new window) (loss mitigation) that includes contact information for assistance? (Comment 1024.36(c)(2) (opens new window))
77	Did the credit union give the same address for receiving information requests? (§§ 1024.35(c) (opens new window) and 1024.36(b) (opens new window))
78	Does the credit union respond to information requests sent to any of its offices? (Comment 1024.36(b)(1) (opens new window))

Acknowledgement of Information Requests

Acknowledgement of Information Requests

Item	Description	Yes	No	N/A
79	Was written acknowledgement provided to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) of the credit union receiving the information request? (§ 1024.36(c)) (opens new window)
80	If no such acknowledgment was provided, did the credit union determine that acknowledgement was not required because either:	N/A	N/A	N/A
80(a)	The credit union provided the borrower with the information requested and contact information (including telephone number) for further assistance within five days (excluding legal public holidays, Saturdays, and Sundays)? (§ 1024.36(e)) (opens new window)
80(b)	The credit union determined that it was not required to respond and provided the borrower written notice with the reason for its determination not to respond to the request to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination? (§ 1024.36(f)) (opens new window)

Response to Information Requests

Response to Information Requests

Item	Description	Yes	No	N/A
81	Did the credit union properly responded to the information request by either:	N/A	N/A	N/A
81(a)	Providing the requested information and contact information for further assistance? (§ 1024.36(d)(1)(i)) (opens new window)
81(b)	Conducting a reasonable search for the requested information and providing the borrower with a written notice telling the borrower that the credit union has determined that the requested information is not available, the reason for the credit union’s determination, and contact information for further assistance? (§ 1024.36(d)(1)(ii)) (opens new window)
82	Did the credit union comply with the following time frames:	N/A	N/A	N/A
82(a)	The credit union responded within 10 days (excluding legal public holidays, Saturdays, and Sundays) to borrower request for the identity of or contact information for the owner or assignee of a mortgage loan?
82(b)	The credit union responded within 30 days (excluding legal public holidays, Saturdays, and Sundays) to all other information requests, unless, before the expiration of that 30-day period, the credit union extended the time for responding by an additional 15 days (excluding legal public holidays, Saturdays, and Sundays) by notifying the borrower in writing of the extension and the reasons for it? (§ 1024.36(d)) (opens new window)
83	If the credit union did not respond to the borrower’s request for information, was it determined that the above responses were not required because:	N/A	N/A	N/A
83(a)	The credit union provided the borrower with the information requested and contact information (including telephone number) for further assistance within five days (excluding legal public holidays, Saturdays, and Sundays)? (§ 1024.36(e)) (opens new window)
83(b)	The credit union determined that it was not required to respond and provided the borrower written notice with the reason for its determination not to respond to the request to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after making the determination? (§ 1024.36(f)(2)) (opens new window)

Information Requests Regarding the Identity or Contact Information of the Owner or Assignee of a Mortgage Loan

Information Requests Regarding the Identity or Contact Information of the Owner or Assignee of a Mortgage Loan

Item	Description	Yes	No	N/A
84	If the information requested is the identity or contact information of the owner or assignee of a mortgage loan, did the credit union comply by identifying the person on whose behalf the credit union receives payments? (Comment 1024.36(a)(2)) (opens new window)

Determination that No Response was Required

Determination that No Response was Required

Item	Description	Yes	No	N/A
85	If the credit union was exempt from the requirement to respond, did they determine whether one of the following five exemptions applied:	N/A	N/A	N/A
85(a)	The information requested is substantially the same as information the borrower previously requested, and the credit union has already complied with the requirements for responding to the first request? (§ 1024.36(f)(1)(i)) (opens new window)
85(b)	The information requested is confidential, proprietary, or privileged? (§ 1024.36(f)(1)(ii)) (opens new window)
85(c)	The information requested is not directly related to the borrower’s mortgage loan account? (§ 1024.36(f)(1)(iii)) (opens new window)
85(d)	The information request is overbroad or unduly burdensome. A request is overbroad if the borrower requests that the credit union provide an unreasonable volume of documents or information. A request is unduly burdensome if a diligent credit union could not respond within the time periods in § 1024.36(d)(2) (opens new window) or would incur costs (or have to dedicate resources) that would be unreasonable under the circumstances? (§ 1024.36(f)(1)(iv)) (opens new window)
85(e)	The information request is sent more than one year after either the mortgage loan balance was discharged or the credit union transferred the mortgage loan to another servicer? (§ 1024.36(f)(1)(v)) (opens new window)

Determination that Information Request was Overbroad

Determination that Information Request was Overbroad

Item	Description	Yes	No	N/A
86	If a submitted request was overbroad or unduly burdensome, could the credit union have reasonably identified a valid information request in the submission? (§ 1024.36(f)(1)(iv)) (opens new window)

Impermissible Fees and Conditions

Impermissible Fees and Conditions

Item	Description	Yes	No	N/A
87	Did the credit union not charge a fee or require a borrower to make a payment as a condition of responding to an information request? (§ 1024.36(g)) (opens new window)

Force-Placed Insurance – § 1024.37

Assessing Charges or Fees Related to Force-Placed Insurance
Reasonable Basis

Reasonable Basis

Item	Description	Yes	No	N/A
88	Did the credit union have a reasonable basis to believe that the borrower did not comply with the mortgage loan contract’s requirement to maintain hazard insurance? (§ 1024.37(b)) (opens new window)

Initial Notice

Initial Notice

Item	Description	Yes	No	N/A
86	Did the credit union provide the initial written notice to the borrower at least 45 days before assessing a fee or charge? (§ 1024.37(c)) (opens new window)
87(a)	The date of the notice?
87(b)	The credit union’s name and mailing address?
87(c)	The borrower’s name and mailing address?
87(d)	A statement that requests the borrower provide hazard insurance information for the borrower’s property and that identifies the property by its physical address?
87(e)	A statement that the borrower’s hazard insurance has expired or is expiring (as applicable), that the credit union lacks evidence that the borrower has hazard insurance coverage past the expiration date, and (if applicable) that identifies the type of hazard insurance lacking?
87(f)	A statement that hazard insurance is required on the borrower’s property and that the credit union has purchased or will purchase insurance at the borrower’s expense?
87(g)	A request that the borrower promptly provide the credit union with insurance information?
87(h)	A description of the requested insurance information, how the borrower may provide such information, and (if applicable) that the requested information must be in writing?
87(i)	A statement that the insurance coverage the credit union has purchased or will purchase may cost significantly more than, and provide less coverage than, hazard insurance purchased by the borrower?
87(j)	The credit union’s phone number for borrower questions?
87(k)	A statement advising that the borrower review additional information provided in the same mailing (if applicable)?
88	Was the initial notice in the correct form? (§§ 1024.37(c)(3) to (4)) (opens new window)

Reminder Notice

Reminder Notice

Item	Description	Yes	No	N/A
89	Did the credit union provide a reminder notice (i) at least 30 days after mailing or delivering the initial notice, and (ii) at least 15 days before assessing any charges or fees for force-placed insurance if they had received no hazard insurance information? (§ 1024.37(d)(1)) (opens new window)
90	For borrowers who did not provide hazard insurance information, did the reminder notice:	N/A	N/A	N/A
90(a)	Contain the date of the reminder notice and all of the other information provided in the initial notice?
90(b)	Advise that it is a second and final notice?
90(c)	Identify the annual cost of force-placed insurance or, if unknown, a reasonable estimate? (§ 1024.37(d)(2)(i)) (opens new window)
91	When the credit union receives hazard insurance information but does not receive evidence of continuous coverage, did the reminder notice include the following information: (§ 1024.37(d)(2)(ii)) (opens new window)	N/A	N/A	N/A
91(a)	The date of the reminder notice?
91(b)	The credit union’s name and mailing address?
91(c)	The borrower’s name and mailing address?
91(d)	A statement requesting that the borrower provide hazard insurance information for the borrower’s property and that identifies the property by its physical address?
91(e)	The credit union’s phone number for borrower questions?
91(f)	A statement advising that the borrower review additional information provided in the same mailing (if applicable)?
91(g)	A statement that it is the second and final notice?
91(h)	The annual cost of force-placed insurance, or if unknown, a reasonable estimate?
91(i)	A statement that the credit union has received the hazard insurance information that the borrower provided?
91(j)	A request that the borrower provide the missing information?
91(k)	A statement that the borrower will be charged for insurance the credit union purchases for the time period in which the credit union cannot verify coverage?
92	Was the reminder notice in the correct form? (§§ 1024.37(d)(3) to (4)) (opens new window)
93	By the end of the 15-day period after the credit union sent the reminder notice, did the borrower provide evidence of hazard insurance that complies with the loan contract continuously in place? (§§ 1024.37(c)(1)(iii) (opens new window) and Comment 1024.37(c)(1)(iii)(2) (opens new window))

Assessing Charges or Fees for Renewing or Replacing Force-Placed Insurance

Assessing Charges or Fees for Renewing or Replacing Force-Placed Insurance

Item	Description	Yes	No	N/A
94	Did the credit union provide a written renewal notice to the borrower at least 45 days before assessing any fee or charge? (§ 1024.37(e)(1)(i)) (opens new window)
95	Does the renewal notice include:	N/A	N/A	N/A
95(a)	The date of the renewal notice?
95(b)	The credit union’s name and mailing address?
95(c)	The borrower’s name and mailing address?
95(d)	A statement that requests the borrower to update the hazard insurance information for the borrower’s property and that identifies the property by its physical address?
95(e)	A statement that the credit union previously purchased force-placed insurance at the borrower’s expense because the credit union did not have evidence that the borrower had hazard insurance coverage?
95(f)	A statement that the force-placed insurance has expired or is expiring, as applicable, and that the credit union intends to renew or replace it because hazard insurance is required on the property?
95(g)	A statement that the insurance coverage the credit union has purchased or will purchase may cost significantly more than, and provide less coverage than, insurance purchased by the borrower, and identifying the annual premium cost of force-placed insurance or a reasonable estimate?
95(h)	A statement that if the borrower purchases hazard insurance, the borrower should promptly provide the credit union with insurance information?
95(i)	A description of the requested insurance information and how the borrower may provide such information, and if applicable, that the requested information must be in writing?
95(j)	The credit union’s telephone number for borrower questions?
95(k)	A statement advising the borrower to review additional information provided in the same mailing (if applicable)?
96	Was the renewal notice in the correct form?
97	Does the notice provide certain information in bold text other than the specific statements listed above? (§§ 1024.37(e)(3) and (4)) (opens new window)
98	45 days after sending the renewal notice, did the credit union receive evidence that the borrower had purchased hazard insurance coverage? (§ 1024.37(e)(1)(ii)) (opens new window)
99	Did the credit union require a copy of the borrower’s hazard insurance policy declaration page, the borrower’s insurance certificate, the borrower’s insurance policy, or other forms of written confirmation as evidence?

General Mailing Requirements, Canceling Force-Placed Insurance, and Bona Fide and Reasonable Fee Requirements

General Mailing Requirements, Canceling Force-Placed Insurance, and Bona Fide and Reasonable Fee Requirements

Item	Description	Yes	No	N/A
100	If the credit union mailed any of the written initial reminder, or renewal notices did the servicer use a class of mail not less than first-class mail? (§ 1024.37(f)) (opens new window)
101	If the credit union received evidence that the borrower had the required hazard insurance coverage in place, did the credit union perform each of the following within 15 days:
101(a)	Cancel the force-placed insurance?
101(b)	Refund force-placed insurance premiums charges and fees for the period the coverage overlapped?
101(c)	Remove all force-placed charges and fees from the borrower’s account for the period the coverage overlapped? (§ 1024.37(g)) (opens new window)
102	Are all fees or charges assessed on the borrower related to force-placed insurance bona fide and reasonable (except for charges subject to state regulation and charges authorized by the Flood Disaster Protection Act of 1973)? (§ 1024.37(h)) (opens new window)

General Servicing Policies, Procedures, and Requirements – § 1024.38 (opens new window)

Policies and Procedures – Accessing and Providing Timely and Accurate Information

Policies and Procedures – Accessing and Providing Timely and Accurate Information

Item	Description	Yes	No	N/A
103	[Not applicable to “small servicers.”] Does the credit union maintain policies and procedures that ensure that it has access to and provides timely and accurate information? (§§ 1024.38(a) and (b)(1)) (opens new window)
103(a)	Do these policies and procedures ensure that the credit union:	N/A	N/A	N/A
103(b)	Provide accurate and timely disclosures to the borrower?
103(c)	Investigate, respond to, and make corrections in response to borrowers’ complaints, including promptly obtaining information from service providers to investigate and if applicable correct errors resulting from actions of service providers?
103(d)	Provide borrowers with accurate and timely information and documents in response to borrower requests for information about the borrower’s mortgage loan?
103(e)	Provide owners and assignees of mortgage loans with accurate and current information and documents about all the mortgage loans they own, including information about the credit union’s evaluations of borrowers for loss mitigation options and loss mitigation agreements with borrowers?
103(f)	Submit accurate and current information and documents that comply with applicable law during the foreclosure process?
103(g)	Upon learning of a borrower’s death, promptly communicate with the borrower’s successor in interest about the secured property?

Policies and Procedures – Proper Evaluation of Loss Mitigation Applications

Policies and Procedures – Proper Evaluation of Loss Mitigation Applications

Item	Description	Yes	No	N/A
104	[Not applicable to “small servicers.”] Does the credit union maintain policies and procedures that ensure that its personnel properly evaluate loss mitigation applications? (§§ 1024.38(a) and (b)(2)) (opens new window)
105	Do these policies and procedures ensure that the credit union:	N/A	N/A	N/A
105(a)	Provide accurate information regarding available loss mitigation options from the owner or assignee of the borrower’s loan?
105(b)	Specifically identify all loss mitigation options a borrower may be eligible for, including identifying, with respect to each owner or assignee, all of the loss mitigation options the credit union may consider when evaluating a borrower, as well as the criteria the credit union should apply for each option?
105(c)	Provide the loss mitigation personnel assigned to the borrower’s mortgage loan pursuant to § 1024.40 (opens new window) with prompt access to all of the documents and information that the borrower submitted for loss mitigation option?
105(d)	Identify the documents and information a borrower must submit to complete a loss mitigation application?
105(e)	In response to a complete loss mitigation application, properly evaluate the borrower for all eligible loss mitigation options according to any requirements established by the owner or assignee of the mortgage loan, even if those requirements are beyond the requirements of § 1024.41 (opens new window)?

Policies and Procedures – Oversight of Servicer Providers

Policies and Procedures – Oversight of Servicer Providers

Item	Description	Yes	No	N/A
106	[Not applicable to “small servicers.”] Does the credit union maintain policies and procedures for service provider oversight and compliance? (§§ 1024.38(a) and (b)(3)) (opens new window)
107	Do these policies and procedures ensure that the credit union:	N/A	N/A	N/A
107(a)	Provide appropriate personnel with access to accurate and current documents and information concerning the service providers’ actions?
107(b)	Allow periodic reviews of service providers?
107(c)	Allow sharing accurate and current information about the status of a borrower’s loss mitigation application and any foreclosure proceeding among appropriate credit union personnel. These include the loss mitigation personnel assigned to the borrower’s mortgage loan, and appropriate service provider personnel, including service provider personnel responsible for handling foreclosure proceedings?

Policies and Procedures – Transfer of Information

Policies and Procedures – Transfer of Information

Item	Description	Yes	No	N/A
108	[Not applicable to “small servicers.”] Does the credit union maintain policies and procedures for transferring information during servicing transfers? (§§ 1024.38(a) and (b)(4)) (opens new window)
109	Do these policies and procedures ensure that a transferor servicer timely and accurately transfers all information and documents in its possession and control related to a transferred mortgage loan to the transferee servicer? Is this done in a way that ensures its accuracy and that allows the transferee to comply with the terms of the mortgage loan and applicable law, including any information about the status of any loss mitigation agreements or discussions with the borrower and any analysis performed regarding potential recovery from non-performing mortgage loans?
109(a)	AND that a transferee servicer identify necessary documents or information that may not have been transferred, obtain the missing documentation or information from the transferor servicer (for documents and information related to loss mitigation, the transferee’s policies and procedures must require it to attempt to obtain the missing documents from the transferor servicer before attempting to obtain such documents from the borrower)?

Policies and Procedures – Notifying Borrowers of Error Notice and Information Request Procedures

Policies and Procedures – Notifying Borrowers of Error Notice and Information Request Procedures

Item	Description	Yes	No	N/A
110	[Not applicable to “small servicers.”] Does the credit union maintain policies and procedures that inform borrowers about procedures for submitting written error notices and written information requests? (§§ 1024.38(a) and (b)(5)) (opens new window)
111	Do these policies and procedures ensure that the credit union informs borrowers who are not satisfied with the credit union’s response to oral complaints or information requests about the procedures for submitting written error notices? (§§ 1024.35 (opens new window), 1024.36 (opens new window))

Records Maintenance – Accurate Records

Records Maintenance – Accurate Records

Item	Description	Yes	No	N/A
112	[Not applicable to “small servicers.”] For any mortgage loan, does the credit union keep accurate records that document actions regarding the mortgage loan account (which includes any mortgage loan that has been transferred or paid in full)? (§ 1024.38(c)(1)) (opens new window)
113	Are these records kept by the credit union until one year after the loan is discharged or until the credit union transfers servicing for the mortgage loan to a transferee servicer? (§ 1024.38(c)(1)) (opens new window)

Records Maintenance – Facilitating Aggregation of Information

Records Maintenance – Facilitating Aggregation of Information

Item	Description	Yes	No	N/A
114	[Not applicable to “small servicers.”] For documents or information created on or after January 10, 2014, does the credit union keep the following five items for each mortgage loan file in a way that allows the credit union to compile them into a servicing file within five days:	N/A	N/A	N/A
114(a)	A schedule of all credits and debits to the account (including escrow accounts and suspense accounts)?
114(b)	A copy of the security instrument that establishes the lien securing the mortgage loan?
114(c)	Any notes created by credit union personnel regarding communications with the borrower concerning the account?
114(d)	A report of the data fields for the borrower’s account created by the credit union’s electronic systems (if applicable)?
114(e)	Copies of any information or documents the borrower provided to the credit union regarding written error notices or loss mitigation? (§ 1024.38(c)(2)) (opens new window)

Early Intervention Requirements for Certain Borrowers – § 1024.39 (opens new window)

Live Contact

Live Contact

Item	Description	Yes	No	N/A
115	[Not applicable to “small servicers.”] Did the credit union the credit union make good faith efforts to establish live contact with the borrower within 36 days after each time the borrower became delinquent? (§ 1024.39(a)) (opens new window)
116	After establishing live contact, did the credit union promptly inform the borrower of loss mitigation options, if appropriate (based on the credit union’s discretion)? (§ 1024.39(a)) (opens new window)

Early Intervention Requirements for Certain Borrowers – § 1024.39 (opens new window)

Live Contact

Live Contact

Item	Description	Yes	No	N/A
115	[Not applicable to “small servicers.”] Did the credit union the credit union make good faith efforts to establish live contact with the borrower within 36 days after each time the borrower became delinquent? (§ 1024.39(a)) (opens new window)
116	After establishing live contact, did the credit union promptly inform the borrower of loss mitigation options, if appropriate (based on the credit union’s discretion)? (§ 1024.39(a)) (opens new window)

Written Notice

Written Notice

Item	Description	Yes	No	N/A
117	[Not applicable to “small servicers.”] Did the credit union send a written notice to the borrower within 45 days after borrower became delinquent? (§ 1024.39(b)(1)) (opens new window)
118	Does the notice include:	N/A	N/A	N/A
118(a)	A statement encouraging the borrower to contact the credit union?
118(b)	The telephone number to access assigned loss mitigation personnel?
118(c)	A brief description of examples of loss mitigation options that may be available to the borrower (if applicable)?
118(d)	Instructions for completing the loss mitigation application or instructions on how to obtain more information about loss mitigation options (such as by contacting the credit union), if applicable?
118(e)	Either the CFPB’s or HUD’s website to access homeownership counselors or counseling organizations lists and HUD’s toll-free number to access homeownership counselors or counseling organizations? (§ 1024.39(b)(2)) (opens new window)

Continuity of Contact – § 1024.40 (opens new window)

Continuity of Contact – § 1024.40

Item	Description	Yes	No	N/A
119	[Not applicable to “small servicers.”] Does the credit union maintain policies and procedures to assign personnel to a delinquent borrower by the time the written early intervention notice was provided, and in any event, within 45 days after the borrower became delinquent? (§ 1024.40(a)) (opens new window)
120	Does the credit union maintain policies and procedures to ensure the assigned personnel’s availability, via telephone, to answer the borrower’s questions and (as applicable) assist the borrower with available loss mitigation options until the borrower has made, without incurring a late charge, two consecutive mortgage payments according to the terms of a permanent loss mitigation agreement? (§ 1024.40(a)(2)) (opens new window)
121	Does the credit union maintain policies and procedures to ensure that, if a borrower contacts the assigned personnel and does not immediately receive a live response, the credit union can provide a live response in a timely manner? (§ 1024.40(a)(3)) (opens new window)
122	Does the credit union maintain policies and procedures to ensure that the assigned personnel can perform each of the following tasks:	N/A	N/A	N/A
122(a)	Provide the borrower with accurate information about available loss mitigation options, including the steps the borrower must take to be evaluated for those options, including how to complete a loss mitigation application or appeal a denial of a loan modification option (if applicable)?
122(b)	Provide the borrower with accurate information about the status of any loss mitigation application submitted?
122(c)	Provide the borrower with accurate information about the circumstances when the credit union may refer the account to foreclosure?
122(d)	Provide the borrower with accurate information about loss mitigation deadlines?
122(e)	Timely retrieve a complete record of the borrower’s payment history and all written information the borrower has provided to the credit union (or the credit union’s predecessors) regarding a loss mitigation application, and provide these documents to other persons required to evaluate the borrower for available loss mitigation options?
122(f)	Provide the borrower with information about submitting a written error notice or written request for information? (§ 1024.40(b)) (opens new window)

Loss Mitigation Procedures – § 1024.41 (opens new window)

Applicability

Applicability

Item	Description	Yes	No	N/A
123	[Not applicable to “small servicers.”] Does the credit union understand the required loss mitigation procedures apply only to loans secured by the borrower’s principal residence and not to reverse mortgage loans? Has the credit union claiming small servicer status properly determined that it is a small servicer?

Calculating Time Periods:

Calculating Time Periods:

Item	Description	Yes	No	N/A
124	In determining time periods for required actions, does the credit union consider a complete loss application received when there is no foreclosure sale scheduled to be more than 90 days before a foreclosure sale?

Definition of First Notice or Filing:

Definition of First Notice or Filing:

Item	Description	Yes	No	N/A
125	For certain prohibitions on making the first notice or filing for a foreclosure sale, does the credit union define first notice or filing for both a judicial and non-judicial foreclosure?

Loss Mitigation Applications Received at Least 45 Days Before a Foreclosure Sale (Review for Completeness)

Loss Mitigation Applications Received at Least 45 Days Before a Foreclosure Sale (Review for Completeness)

Item	Description	Yes	No	N/A
126	Did the credit union promptly determine whether the loss mitigation application was complete? (§ 1024.41(b)(1)) (opens new window)

Complete Applications – Written Acknowledgement

Complete Applications – Written Acknowledgement

Item	Description	Yes	No	N/A
127	If the application was complete, did the credit union provide acknowledgement to the borrower within five days (excluding legal public holidays, Saturdays, and Sundays) after receiving the loss mitigation application?
128	Did the acknowledgement state that the application was complete and include a statement that the borrower should consider contacting servicers of any other mortgage loans secured by the same property to discuss loss mitigation options? (§ 1024.41(b)(2)(i)(B)) (opens new window)

Facially Complete Applications – Additional Information or Corrected Documents Required

Facially Complete Applications – Additional Information or Corrected Documents Required

Item	Description	Yes	No	N/A
129	Upon discovering that additional information or corrected documents were required to complete the application, did the credit union (both):	N/A	N/A	N/A
129(a)	Promptly request the missing information or corrected documents?
129(b)	Give the borrower a reasonable opportunity to complete the application? (§ 1024.41(c)(2)(iv)) (opens new window)
130	If an application was facially complete, but later the servicer requests additional needed information, does the credit union treat the borrower’s application as complete for purposes of § 1024.41(f)(2) (opens new window) (“Application received before foreclosure referral”) and § 1024.41(g) (opens new window) (“Prohibition on foreclosure sale”) until the borrower was given a reasonable opportunity to submit additional information or corrected documents? (§ 1024.41(c)(2)(iv)) (opens new window)

Incomplete Applications – Written Acknowledgement, Reasonable Diligence, and Short-Term Forbearance

Incomplete Applications – Written Acknowledgement, Reasonable Diligence, and Short-Term Forbearance

Item	Description	Yes	No	N/A
131	[Not applicable to “small servicers.”] Did the credit union provide written acknowledgement to the borrower within five days (excluding public holidays, Saturdays, and Sundays) after receiving the loss mitigation application?
132	Does the written acknowledgement:	N/A	N/A	N/A
132(a)	State that the application was incomplete?
132(b)	Identify the additional information needed to complete the application?
132(c)	Identify a reasonable date by which the borrower must submit the additional information?
132(d)	Include a statement that the borrower should contact servicers of any mortgage loans secured by the same property to discuss loss mitigation options? (§ 1024.41(b)(2)) (opens new window)
133	Did the credit union exercise reasonable diligence in obtaining documents and information to complete the application? (§ 1024.41(b)(1)) (opens new window)
134	If the credit union offered the borrower a short term forbearance plan based upon information contained in an incomplete loss mitigation application, and the borrower is performing under the plan, did the credit union refrain from:	N/A	N/A	N/A
134(a)	Making the first notice of filing for any judicial or non-judicial foreclosure process?
134(b)	Moving for foreclosure judgment or an order of sale?
134(c)	Conducting a foreclosure sale? (§ 1024.41(c)(2)(iii) (opens new window))

Complete Applications Received More Than 37 Days Before a Foreclosure Sale (Evaluation of Application)

Complete Applications Received More Than 37 Days Before a Foreclosure Sale (Evaluation of Application)

Item	Description	Yes	No	N/A
135	Within 30 days, did the credit union:	N/A	N/A	N/A
135(a)	Evaluate the borrower for all available loss mitigation options?
135(b)	ANDProvide the borrower with a notice stating the following: which loss mitigation options (if any) the credit union would offer the borrower, the amount of time the borrower has to accept or reject an offered loss mitigation option pursuant to § 1024.41(e) (opens new window), and if applicable, that the borrower has the right to appeal a denial of a loan modification option and the time period for making any appeal under § 1024.41(h) (opens new window)? (§ 1024.41(c)) (opens new window)
136	If the credit union denied the application, did the notice state the specific reason or reasons for the denial, and, if applicable, that the borrower was not evaluated on other criteria? (§ 1024.41(d)) (opens new window)

Denial of Loan Modification Option Based Upon Investor Criteria; Use of a Waterfall

Denial of Loan Modification Option Based Upon Investor Criteria; Use of a Waterfall

Item	Description	Yes	No	N/A
137	In its notice to the borrower, did the credit union identify the following:	N/A	N/A	N/A
137(a)	The owner or assignee of the mortgage loan?
137(b)	The specific criteria the borrower did not meet? (§§ 1024.41(d) (opens new window), Comment 1024.41(d)(1))
137(c)	If the borrower’s application was evaluated under an investor’s waterfall and the borrower qualified for a particular option, did the credit union inform the borrower that the investor’s requirements include a ranking of options and that an offer of a loan modification option means that any other options ranked below the options offered will be denied? (Comment 1024.41(d)(1)) (opens new window)

Denial Based Upon Net Present Value Calculation

Denial Based Upon Net Present Value Calculation

Item	Description	Yes	No	N/A
138	Did the credit union disclose the inputs used in the net present value calculation? (Comment 1024.41(d)(2)) (opens new window)

Denial Using Hierarchy of Eligibility Criteria

Denial Using Hierarchy of Eligibility Criteria

Item	Description	Yes	No	N/A
139	Did the credit union identify in the notice:	N/A	N/A	N/A
139(a)	The reason or reasons why the borrower was rejected?
139(c)	That the borrower was not evaluated on other criteria? (Comment 1024.41(d)(4)) (opens new window)

Time for Acceptance of an Offered Loss Mitigation Option

Complete Applications Received at Least 90 Days Before a Foreclosure Sale

Complete Applications Received at Least 90 Days Before a Foreclosure Sale

Item	Description	Yes	No	N/A
140	[Not applicable to “small servicers.”] If the credit union offered a loss mitigation option and received the complete application at least 90 days before a foreclosure sale, did the credit union provide the borrower with at least 14 days to accept or reject any offered loan modification option after the servicer notified the borrower about the offer? (§ 1024.41(e)) (opens new window)
141	To extend the acceptance period, if within 14 days, did the credit union allow the borrower to appeal a denial of any loan modification option? (§ 1024.41(e)(2)(iii)) (opens new window)
142	In the event of an appeal, was the borrower’s time for acceptance extended to 14 days after the credit union provided a notice of its determination of the appeal under § 1024.41(e)(2)(iii) (opens new window)?

Complete Applications Received Between 37 and 90 days Before a Foreclosure Sale

Complete Applications Received Between 37 and 90 days Before a Foreclosure Sale

Item	Description	Yes	No	N/A
143	[Not applicable to “small servicers.”] If the credit union offered a loss mitigation option and received the complete application fewer than 90 days before a foreclosure sale but more than 37 days before the sale, did the credit union provide the borrower with at least seven days to accept or reject any offered loss mitigation options after the servicer notified the borrower about the offer? (§ 1024.41(e)(1)) (opens new window)

No Borrower Response to Offered Trial Loan Modification Plan

No Borrower Response to Offered Trial Loan Modification Plan

Item	Description	Yes	No	N/A
144	[Not applicable to “small servicers.”] If the credit union offered a borrower a trial modification plan and the borrower did not respond within seven or 14 days did the credit union:	N/A	N/A	N/A
144(a)	Find out if the borrower submitted payments in accordance with the offered plan?
144(b)	If so, did the credit union give the borrower a reasonable period of time to fulfill any remaining requirements to accept the plan? (§ 1024.41(e)(2)(ii)) (opens new window)

Prohibitions on Commencing Foreclosure Proceedings and Dual Tracking

Prohibitions on Commencing Foreclosure Proceedings and Dual Tracking

Item	Description	Yes	No	N/A
145	Did the credit union meet one of these conditions when it made any first judicial or non-judicial foreclosure notices or filings:	N/A	N/A	N/A
145(a)	The borrower was more than 120 days delinquent?
145(b)	The foreclosure is based on a borrower’s violation of a due-on-sale clause?
145(c)	The credit union is joining the foreclosure action of a subordinate lienholder? (§ 1024.41(f)(1)) (opens new window)

Complete Applications Received During the Pre-foreclosure Period

Complete Applications Received During the Pre-foreclosure Period

Item	Description	Yes	No	N/A
146	For applications received during a pre-foreclosure period, did the credit union make the first foreclosure notice or filing only after at least one of the following occurred:	N/A	N/A	N/A
146(a)	The credit union notified the borrower of his or her ineligibility for any loss mitigation option and, if an appeal was available, the appeal period expired or the appeal was denied?
146(b)	The borrower rejected all the offered loss mitigation options?
146(c)	The borrower did not perform under a loss mitigation agreement? (§ 1024.41(f)(2)) (opens new window)

Complete Applications Received More Than 37 Days Before a Foreclosure Sale

Complete Applications Received More Than 37 Days Before a Foreclosure Sale

Item	Description	Yes	No	N/A
147	Did the credit union refrain from improperly conducting a foreclosure sale or moving for foreclosure judgment before one of the following:	N/A	N/A	N/A
147(a)	The credit union notified the borrower that it had denied the loss mitigation application and, if an appeal was available, either the appeal period expired or the appeal was denied?
147(b)	The borrower rejected all the offered loss mitigation options?
147(c)	The borrower did not perform under a loss mitigation agreement? (§ 1024.41(g)) (opens new window)

Appeal Process

Appeal Process

Item	Description	Yes	No	N/A
148	For any borrower who timely appealed a denial of an available loan modification option, did the credit union provide a notice to the borrower within 30 days stating:	N/A	N/A	N/A
148(a)	Whether the credit union will offer the borrower a loss mitigation option based on the appeal?
148(b)	If applicable, how long the borrower has to accept or reject this loss mitigation option or a previously offered loss mitigation option? (§ 1024.41(h)(4)) (opens new window)
149	For any appeal that the credit union granted, did the credit union give the borrower 14 days to accept or reject any offered loan modification option? (§ 1024.41(h)(4)) (opens new window)
150	Did the credit union use different personnel to evaluate the appeal than the personnel who evaluated the borrower’s loss mitigation application? (§ 1024.41(h)(3)) (opens new window)

Small Servicers

Small Servicers

Item	Description	Yes	No	N/A
151	If the credit union is a small servicer, did the credit union refrain from making the first foreclosure notice or filing before the borrower was more than 120 days delinquent, unless the foreclosure was based on a borrower’s violation of a due-on-sale clause or the servicer is joining a subordinate lienholder’s foreclosure action? (§ 1024.41(j)) (opens new window)
152	If the credit union is a small servicer and the borrower is performing according to the terms of a loss mitigation agreement, did the credit union refrain from any of the following:	N/A	N/A	N/A
152(a)	Making the first foreclosure notice or filing?
152(b)	Moving for a foreclosure judgment or order of sale?
152(c)	Conducting a foreclosure sale? (§ 1024.41(j)) (opens new window)