HUD Training 2024
Study online at https://quizlet.com/_esc1y1
1. Servicer: A company that handles all the administrative aspects of a loan from
the closing to mortgage payoff, including handling the payments, escrow, and all
documentation for records.
2. Foreclosure: A legal process in which mortgaged property is sold to pay the loan
of a defaulting borrower.
3. Negative Amortization: An increase in the principal balance of a loan caused by
monthly payments that do not cover the interest due. The unpaid interest is added
to the unpaid principal balance, causing the loan to grow over time.
4. Consumer Finance Protection Bureau - CFPB: Established by Congress as
part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
to address failures of consumer protections , Protects consumers by carrying out
federal consumer financial laws , Supervises companies and restricts unfair, decep-
tive, or abusive acts or practices , Takes consumer complaints , Promotes financial
education , Monitors financial markets for new risks to consumers
5. Dual Tracking: The term used when servicers move forward on a foreclosure at
the same time the mortgage servicer is working with a borrower on a workout plan.
6. CFPB January 10, 2014 Changes: 1. Make it easier for borrowers to understand
the terms of their loans; require mandatory homeownership counseling for certain
mortgages types and require that consumers receive information about homeown-
ership counseling providers
2. Require lenders to make a good-faith determination that the consumer can actu-
ally afford the mortgage; requiring servicers to be more transparent with fees/pay-
ments; and ensuring that consumers see appraisal information.
3. Require early notification of foreclosure alternatives; mandating a single applica-
tion for foreclosure alternative options, as well as a prompt and fair review process;
and prohibiting foreclosure until after all other alternatives are considered
7. CFPB Mortgage Servicing Amendments 2016: 1. Requires servicers to provide
certain borrowers with foreclosure protections more than once over the life of the
loan, as long as they become current on payments at any time between completed
prior and subsequent loss mitigation applications.
2. Improves policies and procedures on early intervention for struggling borrowers
and clarifies loss mitigation requirements. 3. Clarifies borrower protections when
the servicing of a loan is transferred and provides important loan information to
borrowers in bankruptcy.
4. Ensures that surviving family members and others who inherit or receive property
generally have the same mortgage servicing protections as the original borrower.
8. Joint State-Federal National Mortgage Settlements: 1. 49 states and five ser-
vicers—Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase, and Wells
Fargo— that were involved in deceptive lending and foreclosure practices, 2.Re-
, HUD Training 2024
Study online at https://quizlet.com/_esc1y1
quired servicers to appoint a single point of contact for loss mitigation efforts, have
adequate trained staff, honor modification agreements made by a prior servicer,
maintain better communication with borrowers
3. Comply with the Servicemembers Civil Relief Act, improve standards for executing
foreclosure documents, remove improper fees, and end dual tracking.
4.Provided $50 billion in direct payments to signing states and the federal govern-
ment, as well as relief to distressed borrowers, though many claims deadlines have
since passed.
5. Resulted in loan modifications for struggling homeowners, refinancing for under-
water homeowners, and payouts for homeowners who lost their homes.
9. Servicemembers Civil Relief Act: An act that protects military personnel and
their dependents in issues related to housing, including certain protections against
default judgments, foreclosure, and eviction.
10. Delinquent: The failure of a borrower to make timely mortgage payments under
a loan agreement.
11. Default: The inability to make timely payments or fulfill legal obligations of loan
terms. Mortgage loans are typically considered in default when a payment has not
been made after 60 to 90 days.
12. What state agencies govern foreclosures: State's Housing Finance Agency,
Department of Community Affairs, Housing Department, or Attorney General's office
13. After how many days delinquent must a servicer ATTEMPT to make contact
with borrower?: 36 days
14. After how many days delinquent must a servicer send a written notice to
borrower?: 45 days
15. Subsequent Mortgage Statements must include:: •Information on risks of
delinquency
• Updates about any foreclosure proceedings.
• Contact information for housing counseling agencies.
• Information about loss mitigation programs.
16. After how many days delinquent can servicers file for foreclosure?: 120
days
17. T/F Servicers can file for foreclosure after 120 days delinquent if borrower
has applied for loss mitigation?: False: Even after 120 days, servicers cannot
begin foreclosure if any options are still under consideration
18. JUDICIAL OR NON JUDICIAL:
Courts are not involved; communication occurs between the homeowner and
the servicer or the servicer's appointed representative in the foreclosure
process.: Non Judicial
Study online at https://quizlet.com/_esc1y1
1. Servicer: A company that handles all the administrative aspects of a loan from
the closing to mortgage payoff, including handling the payments, escrow, and all
documentation for records.
2. Foreclosure: A legal process in which mortgaged property is sold to pay the loan
of a defaulting borrower.
3. Negative Amortization: An increase in the principal balance of a loan caused by
monthly payments that do not cover the interest due. The unpaid interest is added
to the unpaid principal balance, causing the loan to grow over time.
4. Consumer Finance Protection Bureau - CFPB: Established by Congress as
part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
to address failures of consumer protections , Protects consumers by carrying out
federal consumer financial laws , Supervises companies and restricts unfair, decep-
tive, or abusive acts or practices , Takes consumer complaints , Promotes financial
education , Monitors financial markets for new risks to consumers
5. Dual Tracking: The term used when servicers move forward on a foreclosure at
the same time the mortgage servicer is working with a borrower on a workout plan.
6. CFPB January 10, 2014 Changes: 1. Make it easier for borrowers to understand
the terms of their loans; require mandatory homeownership counseling for certain
mortgages types and require that consumers receive information about homeown-
ership counseling providers
2. Require lenders to make a good-faith determination that the consumer can actu-
ally afford the mortgage; requiring servicers to be more transparent with fees/pay-
ments; and ensuring that consumers see appraisal information.
3. Require early notification of foreclosure alternatives; mandating a single applica-
tion for foreclosure alternative options, as well as a prompt and fair review process;
and prohibiting foreclosure until after all other alternatives are considered
7. CFPB Mortgage Servicing Amendments 2016: 1. Requires servicers to provide
certain borrowers with foreclosure protections more than once over the life of the
loan, as long as they become current on payments at any time between completed
prior and subsequent loss mitigation applications.
2. Improves policies and procedures on early intervention for struggling borrowers
and clarifies loss mitigation requirements. 3. Clarifies borrower protections when
the servicing of a loan is transferred and provides important loan information to
borrowers in bankruptcy.
4. Ensures that surviving family members and others who inherit or receive property
generally have the same mortgage servicing protections as the original borrower.
8. Joint State-Federal National Mortgage Settlements: 1. 49 states and five ser-
vicers—Ally (formerly GMAC), Bank of America, Citi, JPMorgan Chase, and Wells
Fargo— that were involved in deceptive lending and foreclosure practices, 2.Re-
, HUD Training 2024
Study online at https://quizlet.com/_esc1y1
quired servicers to appoint a single point of contact for loss mitigation efforts, have
adequate trained staff, honor modification agreements made by a prior servicer,
maintain better communication with borrowers
3. Comply with the Servicemembers Civil Relief Act, improve standards for executing
foreclosure documents, remove improper fees, and end dual tracking.
4.Provided $50 billion in direct payments to signing states and the federal govern-
ment, as well as relief to distressed borrowers, though many claims deadlines have
since passed.
5. Resulted in loan modifications for struggling homeowners, refinancing for under-
water homeowners, and payouts for homeowners who lost their homes.
9. Servicemembers Civil Relief Act: An act that protects military personnel and
their dependents in issues related to housing, including certain protections against
default judgments, foreclosure, and eviction.
10. Delinquent: The failure of a borrower to make timely mortgage payments under
a loan agreement.
11. Default: The inability to make timely payments or fulfill legal obligations of loan
terms. Mortgage loans are typically considered in default when a payment has not
been made after 60 to 90 days.
12. What state agencies govern foreclosures: State's Housing Finance Agency,
Department of Community Affairs, Housing Department, or Attorney General's office
13. After how many days delinquent must a servicer ATTEMPT to make contact
with borrower?: 36 days
14. After how many days delinquent must a servicer send a written notice to
borrower?: 45 days
15. Subsequent Mortgage Statements must include:: •Information on risks of
delinquency
• Updates about any foreclosure proceedings.
• Contact information for housing counseling agencies.
• Information about loss mitigation programs.
16. After how many days delinquent can servicers file for foreclosure?: 120
days
17. T/F Servicers can file for foreclosure after 120 days delinquent if borrower
has applied for loss mitigation?: False: Even after 120 days, servicers cannot
begin foreclosure if any options are still under consideration
18. JUDICIAL OR NON JUDICIAL:
Courts are not involved; communication occurs between the homeowner and
the servicer or the servicer's appointed representative in the foreclosure
process.: Non Judicial
