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#2125488 - 04/07/17 06:05 PM Successors In Interest
Carter'sMom Offline
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Joined: Aug 2015
Posts: 37
Would love to hear from others about their plans on the successors in interest requirements. My management team has serious heartburn on this upcoming change. Has anyone prepared a list of acceptable documentation to prove successors? Who will review and make a call on the valid successors - credit, legal? Will your core allow for you to add this successor to receive the necessary notices and still prohibit the mailing of all notices to them? Are you planning on using the acknowledgement method? I know it states that we cannot require the successor to refinance the loan into their name - but can we charge for the research and the necessary steps to add them as an interested party for the loan. Management is also concerned about this perpetually delaying foreclosure and incurring additional legal fees for the bank.

Thanks in advance to those willing to share your thoughts, heartburn and solutions... we are all in this together. :-)

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Mortgage Servicing Rules
#2125534 - 04/07/17 07:41 PM Re: Successors In Interest Carter'sMom
peony Offline
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peony
Joined: Mar 2013
Posts: 250
Following - This is the section we are going to have the most trouble with.

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#2126708 - 04/18/17 03:18 PM Re: Successors In Interest Carter'sMom
Jade'sFire Offline
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Yaven IV
I'm not sure I can respond to your questions, but I can let you know our plan of attack for this portion of the new rules smile

We have created a project plan in excel. There are "tasks" for each section that has been impacted by the new rule. We have a task for updating successor in interest procedures, one for working with legal to determine what documents we will require to confirm a successor, one for determining if we will use the acknowledgement form, one for each notice update, etc.

It is a lot of moving pieces and we are setting up dates for each task to be researched and completed and also assign each task to the correct people. This helps plan ahead for what vendors we need to work with and who internally is responsible for researching and making decisions.
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#2128695 - 05/02/17 12:47 PM Re: Successors In Interest Carter'sMom
Antilles Offline
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Antilles
Joined: Jan 2007
Posts: 208
Southern US
Following as well. We are a small servicer so I know we don't need the policy but interpret that we need procedures.
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#2128730 - 05/02/17 02:04 PM Re: Successors In Interest Carter'sMom
JWills, CRCM Offline
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JWills, CRCM
Joined: May 2013
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The Mitten State
Following as well. Jade, are you a large servicer?
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#2128859 - 05/02/17 07:54 PM Re: Successors In Interest Carter'sMom
Jade'sFire Offline
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Jade'sFire
Joined: Apr 2012
Posts: 369
Yaven IV
Yes!
I am actually working on my task plan right now. This is exhausting!
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#2132995 - 06/02/17 08:52 PM Re: Successors In Interest Carter'sMom
Tesla Offline
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Joined: Nov 2003
Posts: 3,647
I have read and read this part of the rule and I do not see in the actual rule where the successor in interest's notification to the bank has to be in writing. I see it in the Supplement Information but the actual amendment to Reg X - I don't see it. Am I missing it? My concern is prepping tellers, personal bankers, etc. to identify a request and get them to the correct person promptly, if the notification can be oral.
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#2133163 - 06/06/17 02:58 PM Re: Successors In Interest Carter'sMom
Inherent_Risk Offline
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Joined: Jan 2017
Posts: 333
There are 2 places I see "notifications" in the new rules. The first is in 1024.38(b)(1)(vi) concerning have P&Ps when there is notice of potential Successor in Interest. There was previously a similar requirement for this upon notice of death of a borrower. This "notice" does not have to be in writing (or even from the potential successor). The second is the request for information under 1024.36(i), which is required to be in writing. The bank has new but different obligations in both situations.

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#2133589 - 06/08/17 07:25 PM Re: Successors In Interest Carter'sMom
Jade'sFire Offline
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Jade'sFire
Joined: Apr 2012
Posts: 369
Yaven IV
FYI: From the ABA's FAQ summary of CFPB responses provided during a conf call on 5/11/17. The document is available on the ABA website. Looks like they expect you to review documents in your possession.

6. Is a Servicer Obligated to Search for Potential Successors? What is a servicer’s responsibility after it is notified of a borrower’s death? Is the servicer required to search out heirs by virtue of having received notice even though the servicer has not been contacted by a potential successor in interest?

The existence of potential successors may come to the attention of the servicer in a variety of ways. A servicer does not necessarily need to be contacted by a potential successor directly. For example, a servicer may already have documents in its files containing information regarding potential successors. A servicer’s policies and procedures should be designed to ensure that the servicer reviews documents already in its possession that may be relevant.
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#2133647 - 06/08/17 10:03 PM Re: Successors In Interest Carter'sMom
Tesla Offline
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Joined: Nov 2003
Posts: 3,647
I have another question on successors in interest related to notices of error. The first comment (and I am sorry, I can't pull up the reg and type this) says if the potential successor in interest provides enough information you have to comply with (c)- (g) (I think that was what it was - but basically everything). The next comment says if they don't provide enough information you send them something saying you need to provide this or that. Then the third comment says you have to comply with all the requirements of (i) and (ii) (I think) which would mean you have to provide the documents requested-even though they are not officially confirmed as successors in interest in either instance.

What am I missing?
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#2133648 - 06/08/17 10:04 PM Re: Successors In Interest Carter'sMom
Tesla Offline
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Joined: Nov 2003
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Here's what I am referring to above:

(i) Potential successors in interest. (1) With respect to any written request from a person that indicates that the person may be a successor in interest and that includes the name of the transferor borrower from whom the person received an ownership interest and information that enables the servicer to identify the mortgage loan account, a servicer shall respond by providing the potential successor in interest with a written description of the documents the servicer reasonably requires to confirm the person’s identity and ownership interest in the property and contact information, including a telephone number, for further assistance. With respect to the written request, a servicer shall treat the potential successor in interest as a borrower for purposes of the requirements of paragraphs (c) through (g) of this section.
(2) If a written request under paragraph (i)(1) of this section does not provide sufficient information to enable the servicer to identify the documents the servicer reasonably requires to confirm the person’s identity and ownership interest in the property, the servicer may provide a response that includes examples of documents typically accepted to establish identity and ownership interest in a property; indicates that the person may obtain a more individualized description of required documents by providing additional information; specifies what additional information is required to enable the servicer to identify the required documents; and provides contact information, including a telephone number, for further assistance. A servicer’s response under this paragraph must otherwise comply with the requirements of paragraph (i)(1). Notwithstanding paragraph (f)(1)(i), if a potential successor in interest subsequently provides orally or in writing the required information specified by the servicer pursuant to this paragraph, the servicer must treat the new information, together with the original request, as a new, non-duplicative request under paragraph (i)(1), received as of the date the required information was received, and must respond accordingly.
(3) In responding to a request under paragraph (i)(1) of this section prior to confirmation, the servicer is not required to provide any information other than the information specified in paragraphs (i)(1) and (2). In responding to a written request under paragraph (i)(1) that requests other information, the servicer must indicate that the potential successor in interest may resubmit any request for information once confirmed as a successor in interest.
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#2133649 - 06/08/17 10:36 PM Re: Successors In Interest Carter'sMom
Tesla Offline
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Joined: Nov 2003
Posts: 3,647
OK - I think I figured it out If they provide the information, we send a notice with what we need to confirm, they send it and we respond to the information request.

If they don't provide the information, we send them general requirements, they respond, we confirm, and send them the information they requested.

In either instance, if they don't respond, we don't have to provide the documents they requested until they are confirmed.

Is that it in a nutshell?
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It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.

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