SCRA HUD 92070

Does the HUD 92070 letter need to be mailed to HELOC borrowers, since the loan is secured by the residential mortgage property?

Jumping on this thread...first time I am auditing SCRA compliance...can someone please confirm that the SCRA disclosure required to be given on delinquent loans between 32 and 45 days (HUD 92070) is only required for loans on 1 family homes? I am basis this on my quick read of 12 USC 1701x(c)(5) (and the definitions noted within).

Are there any similar notification requirements at early delinquency for other delinquent residential property loans

Thanks.

Yes and Yes

https://www.fdic.gov/regulations/compliance/manual/5/v-4.1.pdf

Thanks.

I am currently in the process of completing an SCRA Review and when looking at our Past Due Notices to our HELOC Customers we do not send the full HUD 92070 Letter. Currently we have this verbiage listed on the past due notices: " HOME OWNERSHIP COUNSELING NOTIFICATION YOU CAN OBTAIN A LIST OF HUD APPROVED NON-PROFIT HOME OWNERSHIP COUNSELING ORGANIZATIONS THAT SERVE YOUR AREA BY CALLING TOLL FREE 800.569.4287. LATE/MISSED PAYMENTS/OTHER DEFAULTS MAY BE REFLECTED IN YOUR CREDIT REPORT"

After reviewing multiple resources i am thinking we need to be sending the full HUD Notice and not the short verbiage that is listed above. Can someone please clarify if the whole notice needs to be sent to HELOC Customers.


References looked at: https://www.fdic.gov/resources/supe...examination-manual/documents/5/v-4-1.pdf

https://www.consumercomplianceoutlo...vicemember-financial-protection-webinar/

The HUD 92070 is the only form that complies with the statutory requirements.

12 U.S. Code § 1701x(c)(5)Notification of availability of homeownership counseling

(A)Notification of availability of homeownership counseling

(i)Requirement

Except as provided in subparagraph (C), the creditor of a loan (or proposed creditor) shall provide notice under clause (ii) to (I) any eligible homeowner who fails to pay any amount by the date the amount is due under a home loan, and (II) any applicant for a mortgage described in paragraph (4).

(ii)Content

Notification under this subparagraph shall—

(I)notify the homeowner or mortgage applicant of the availability of any homeownership counseling offered by the creditor (or proposed creditor);

(II)if provided to an eligible mortgage applicant, state that completion of a counseling program is required for insurance pursuant to section 203 of the National Housing Act [12 U.S.C. 1709];

(III)notify the homeowner or mortgage applicant of the availability of homeownership counseling provided by nonprofit organizations approved by the Secretary and experienced in the provision of homeownership counseling, or provide the toll-free telephone number described in subparagraph (D)(i);

(IV)notify the homeowner by a statement or notice, written in plain English by the Secretary of Housing and Urban Development, in consultation with the Secretary of Defense and the Secretary of the Treasury, explaining the mortgage and foreclosure rights of servicemembers, and the dependents of such servicemembers, under the Servicemembers Civil Relief Act (50 U.S.C. App. 501 et seq.) [now 50 U.S.C. 3901 et seq.], including the toll-free military one source number to call if servicemembers, or the dependents of such servicemembers, require further assistance; and

(V)notify the housing or mortgage applicant of the availability of mortgage software systems provided pursuant to subsection (g)(3).

Can this notice be provided electronically?

Since it has to be in writing, it would have to be delivered under E-Sign.

Thank you!