One of our bankers attended a conference last week and in one of the classes a bank stated that they have been cited for sending Right to Cure notices to their Residential Mortgage customers that are not compliant with the new Reg X Loss Mitigation rules.

In Missouri they have statue 408.554. This Missouri statute states that after the borrower has been in default for ten days for failure to make a required payment and has not voluntarily surrendered possession of the collateral, the Bank may give the borrower and all cosigners on the credit transactions the notice. The lender sends the notice to the last known address.

We currently send the right to cure notice for Missouri customers after the loan becomes 15 days past due.

I'm concerned that we need to stop sending these for consumer real estate loans under the loss mitigation rules.

Any thoughts on this subject?