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REV: 06-11-25 LF <br />1. Delinquency/Default Letter Production: Letters of varying tone and composition will be <br />sent at 15, 30, 45, and 90 days past the payment due date. The 45‐day letter will <br />include the Consumer Financial Protection Bureau (CFPB) mandated notification <br />informing the borrower of the available loss mitigation options. The 90‐day letter will <br />detail for the borrower possible escalated collection activity up to and including <br />foreclosure. The letters emphasize the seriousness of the situation, the potential for <br />loss of the borrower’s property, and demand immediate payment. Borrowers are also <br />encouraged to apply for federal or state relief programs that may be available. <br />2. Due Diligence Phone Calls: Attempts are made in accordance with HUD guidelines <br />for contacting the borrower as soon as the loan becomes delinquent. Telephone calls <br />will be placed on a regular basis as loans remain under active delinquency follow up. <br />Calls to single family mortgage borrowers are made in accordance with CFPB <br />guidance and best practices. Live contact is attempted with the borrower beginning <br />not later than the 17th day of delinquency, under a good faith goal of establishing <br />contact with the borrower by the 36th day of delinquency. One or more subsequent <br />attempts to contact the borrower will generally be made every 30 days thereafter. The <br />objective of the call is to secure or demand prompt payment, obtain information <br />regarding the reason for the delinquency, and to structure a commitment for future <br />payments. <br />3. Credit Reporting: Consultant will report borrower payment activity and status codes to <br />the credit bureaus monthly. <br />4. Confirmation Letters: Contact with borrowers is used to solicit commitments to repay <br />past due amounts. Borrowers are provided an opportunity to bring the loan current <br />immediately, and within six months. Once a commitment is gained, Consultant will <br />forward a confirmation letter to document both the call and the commitment. The <br />revised payment plan of no greater than six month’s duration is then implemented. <br />Default under this plan may lead Consultant to recommend foreclosure. <br />5. Additional loss mitigation activities such as skip tracing and door knock services will <br />be available upon request. The scope and fees associated with these services will be <br />determined and agreed upon by both the City and Consultant. <br />Forbearance Plans <br />Formal forbearance plans are typically used for defaults of 90+ days. A forbearance plan <br />of less than six months duration is executed by the borrower and immediately <br />implemented by Consultant, with notice immediately provided to the City. Formal <br />modifications to promissory note terms and forbearance plans of greater than six months <br />duration are subject to City pre-approved parameters. Forbearance recommendations <br />outside of the pre-approved parameters require individual City approval if they are to <br />move forward. Approval timeframes are subject to regulatory guidance, and therefore if <br />ATTY/AGR.2025.144/AmeriNational Community Services, LLC d/b/a AmeriNat (Page 19 of 31)