If we have an instance where the borrower did not indicate a material change in financial circumstance, this could be at any stage of delinquency; and if a customer is offering a payment plan, but has not expressed a need or advised of material change and we allow them to make extra payments or they would send in extra money until they are caught, would you consider this a loss mitigation program? We may or may not send a confirmation letter of the conversation. Does that matter? I'm trying to determine if we need to include the loss mitigation program language on the periodic statement.

These may be borrowers who just habitually run delinquent who do not express a need for loss mitigation. These customers have received the written notice that loss mit options may be available at 45 pd and again 180 days later if applicable.

Thanks!

From my understanding, you can choose to disclose the amount due under the loan contract (first quote) and then you don't need to address this (second quote). Or are you referring to something else?

2. Temporary loss mitigation programs. If the consumer has agreed to a temporary loss mitigation program, the amount due under § 1026.41(d)(1) may identify either the payment due under the temporary loss mitigation program or the amount due according to the loan contract.

2. Temporary loss mitigation programs. If the consumer has agreed to a temporary loss mitigation program and the amount due identifies the payment due under the temporary loss mitigation program, the explanation of amount due under § 1026.41(d)(2) must include both the amount due according to the loan contract and the payment due under the temporary loss mitigation program. The statement must also include an explanation that the amount due is being disclosed as a different amount because of the temporary loss mitigation program. The explanation should be on the front page of the statement or, alternatively, may be included on a separate page enclosed with the periodic statement or in a separate letter.

Does it matter that we didn't offer the program? The consumer came to us and said that they will be sending in an extra $100 with their next four payments to make up for their late payment. We are just allowing them to send in the extra money. We didn't offer anything any loss mitigation programs to the consumer. Thanks!

I would not consider that - they are allowed to make up the deficiency anyway they want to unless there is some sort of agreement. They can tell you anything they want too - doesn't mean they are going to do it.