Tuesday, April 27, 2010

FYI: NC Promulgates New Loss Mitigation/Foreclosure Prevention Rules

The North Carolina Office of the Commissioner of Banks announced new rules to reduce and delay foreclosures by licensed mortgage services that will go into effect on June 1, 2010.  Copies of the new rules and related press release are attached.
The new rules require a state licensed non-bank mortgage servicer to stop foreclosure efforts pending the consideration of a request by the homeowner for assistance, with some specific exceptions. The new rules also require mortgage servicers to acknowledge a borrower's loss mitigation request within 10 days, respond to a borrower's loss mitigation request within 30 days of a completed application, and specific information in denial letters.
The regulator states that the new rules do not apply to bank servicers, but the state regulator “hopes that bank servicers with large numbers of delinquent mortgage loans will consider adopting similar procedures to reduce the potential of unnecessary foreclosures.” 
Let me know if you have any questions.  Thanks.


Ralph T. Wutscher

Kahrl Wutscher LLP

The Loop Center Building

105 W. Madison Street, Suite 2100
Chicago, Illinois  60602
Direct:  (312) 551-9320 

Fax:  (866) 581-9302
Mobile:  (312) 493-0874




NOTICE:  We do not send unsolicited emails.  If you received this email in error, or if you wish to be removed from our update distribution list, please simply reply to this email and state your intention.  Thank you.


Our updates are available on the internet, in searchable format, at: http://updates.kw-llp.com