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#2160025 - 01/10/18 09:41 PM SII - Acknowledgment Form
Mel in WA Offline
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Under section 1024.32(c), the servicer "may" send a confirmed SII a notice and acknowledgment form, that has specific requirements (i.e. can't set a timeframe to return, SII can revoke it later) that would require tracking. Since it's optional, why would a bank choose to send the acknowledgment form? Once an SII is confirmed, wouldn't it be easier to consider them a borrower and provide correspondence for escrow, servicing transfer, and force-placed insurance? We are a small servicer, so general P&P, loss mitigation (1024.38-1024.41) don't apply.

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#2160324 - 01/12/18 04:32 PM Re: SII - Acknowledgment Form Mel in WA
Mel in WA Offline
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Bump

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#2162053 - 01/26/18 04:37 PM Re: SII - Acknowledgment Form Mel in WA
Sinatra Fan Offline
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Just my opinion, but I never send anything that is optional. If it is mandatory, we send it; if it is optional, we do not. The regulations are onerous enough; if they give us an out, we will take it.
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#2162240 - 01/29/18 04:28 PM Re: SII - Acknowledgment Form Mel in WA
Jade'sFire Offline
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I looked at this differently. I felt like the Acknowledgement form (while optional) would be better for the bank. If we do not send it then we automatically have to start providing a SI with notifications (unless we are sending them to a borrower and the multiple disclosure exemption applies). If we send the acknowledgement form it proves that we are reaching out the the SI and we only have to comply with notifications if they respond.

Thoughts?
Last edited by Jade'sFire; 01/29/18 07:37 PM.
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#2162838 - 02/01/18 11:48 PM Re: SII - Acknowledgment Form Mel in WA
Mel in WA Offline
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I can actually see both sides, since I agree with the "optional" theory. If we implement the Acknowledgement Form, we will have to send it, track it, etc. which means more work. However, I found the citing below under 1024.32(c)(2), which makes me think the form provides the bank an "out" or "safe harbor" for not providing the disclosures listed. Not sure what to do......

(2) Effect of failure to execute acknowledgment. If, upon confirmation, a servicer provides a confirmed successor in interest who is not liable on the mortgage loan obligation with a written notice and acknowledgment form in accordance with paragraph (c)(1) of this section, the servicer is not required to provide to the confirmed successor in interest any written disclosure required by §§ 1024.17, 1024.33, 1024.34, 1024.37, or § 1024.39 or to comply with the live contact requirements in § 1024.39(a) with respect to the confirmed successor in interest until the confirmed successor in interest either assumes the mortgage loan obligation under State law or executes an acknowledgment that complies with paragraph (c)(1)(iv) of this section and provides it to the servicer.

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#2163139 - 02/05/18 07:53 PM Re: SII - Acknowledgment Form Jade'sFire
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Do you have copies of what you are going to provide that you would share?

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#2163272 - 02/06/18 04:45 PM Re: SII - Acknowledgment Form Mel in WA
Mel in WA Offline
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No, since I'm still trying to determine whether or not to provide an Acknowledgement Form. If we do provide it, the notice will be based on 1024.32(c).

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#2167114 - 03/07/18 09:34 PM Re: SII - Acknowledgment Form Mel in WA
Jen Lynch Offline
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I was just wondering if anyone would be willing to share the notice and acknowledgement form? This rule change is a doozy and currently I am the only one working on it for my company. Thank you!

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#2167136 - 03/07/18 10:53 PM Re: SII - Acknowledgment Form Jen Lynch
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Me too.
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#2169341 - 03/21/18 02:19 PM Re: SII - Acknowledgment Form Mel in WA
okcowgirl Offline
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I have a few questions I am hoping someone can clarify for me. This part has really been clear as mud for me.

1) If a confirmed successor in interest (SII) becomes liable on the mortgage loan, then we would send them the loan notices. Does the option of "if we are already sending to a borrower we do not have to send to the SII apply in this case"?

2) If a confirmed SII does not become liable on the mortgage loan and we do not send the optional acknowledgment notice, but we are sending the loan notices to another borrower, do we have to send the SII the notices if they do not request them?

3) If we send the acknowledgment form and do not get it back, we do not have to send the SII any notices, correct?

4) If a confirmed SII does not become liable on the mortgage loan and we send the optional acknowledgment form, they sign and send back, if we are sending the notices to another borrower, we do not have to send the SII the notices but they may still submit notices of error, requests for information, and requests for payoff statements. Is this correct?
Last edited by okcowgirl; 03/21/18 04:03 PM. Reason: changed 4)
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#2169563 - 03/22/18 03:14 PM Re: SII - Acknowledgment Form Mel in WA
John Burnett Online
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1) If a confirmed successor in interest (SII) becomes liable on the mortgage loan, then we would send them the loan notices. Does the option of "if we are already sending to a borrower we do not have to send to the SII apply in this case"?

No. Once the SII becomes legally liable, he or she is a borrower, not an SII.

2) If a confirmed SII does not become liable on the mortgage loan and we do not send the optional acknowledgment notice, but we are sending the loan notices to another borrower, do we have to send the SII the notices if they do not request them?

No. But you do need to respond to the confirmed SII and work with them when asked. You can't ignore their existence or their interest in the real estate.

3) If we send the acknowledgment form and do not get it back, we do not have to send the SII any notices, correct?

Correct - at least those covered by the ACK form.

4) If a confirmed SII does not become liable on the mortgage loan and we send the optional acknowledgment form, they sign and send back, if we are sending the notices to another borrower, we do not have to send the SII the notices but they may still submit notices of error, requests for information, and requests for payoff statements. Is this correct?

Sounds right to me.
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#2169589 - 03/22/18 04:11 PM Re: SII - Acknowledgment Form Mel in WA
okcowgirl Offline
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Thank you John for the clarification on the Acknowledgment form.

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#2173452 - 04/13/18 05:39 PM Re: SII - Acknowledgment Form Mel in WA
LLW Offline
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We originally decided not use the optional notice and acknowledgement form and have now gone full circle and will likely go that route. I have a draft of what I'm thinking of using - send me a PM with your email and I would be happy to share it.

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#2173905 - 04/17/18 08:42 PM Re: SII - Acknowledgment Form Mel in WA
swiggles Offline
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There is no "model form" for the acknowledgment form? Is everyone just making one up? Anyone want to share?
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#2174028 - 04/18/18 03:15 PM Re: SII - Acknowledgment Form LLW
John Burnett Online
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Originally Posted By LLW
We originally decided not use the optional notice and acknowledgement form and have now gone full circle and will likely go that route. I have a draft of what I'm thinking of using - send me a PM with your email and I would be happy to share it.
Care to share what convinced you to use the form? What were your perceptions of the benefits of using it?
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#2174029 - 04/18/18 03:16 PM Re: SII - Acknowledgment Form swiggles
John Burnett Online
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Originally Posted By swiggles
There is no "model form" for the acknowledgment form? Is everyone just making one up? Anyone want to share?
Correct, there is no model form, although the regulation itself spells out a lot of the content in detail.
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#2178044 - 05/14/18 09:17 PM Re: SII - Acknowledgment Form Mel in WA
ScoutLaRue Offline
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So if we decide not to require the acknowledgement signature to the confirmed SII as part of our process, what do we need to state in our confirmation letter to them besides we accept their claim as SII?
I do see what 1024.32 requires in the acknowledgement form, but what if we aren't requiring the optional acknowledgement to be signed? Can we just say, we received the info and it's sufficient, you are now accepted as SII?

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#2178071 - 05/15/18 12:36 PM Re: SII - Acknowledgment Form Mel in WA
Inherent_Risk Offline
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If you don't use the optional form, I believe the only requirement is that you " promptly make a confirmation determination and promptly notify the person" and then of course treat them like a borrower for applicable regs.

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