The servicer must consider available workout options when the servicer is notified or otherwise becomes aware of events or factors that are expected to cause the borrower’s monthly payment to be in default within the next 90 days (“imminent default”). In determining whether a borrower’s monthly payment is in imminent default, the servicer must take the actions described in the following table.
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Evaluate the borrower’s financial and hardship condition. See D2-2-05, Receiving a Borrower Response Package for information on evaluating the borrower for workout options when the borrower submits a complete BRP.
Evaluate the condition of and the circumstances affecting the property securing the mortgage loan by consulting with the borrower.
The servicer must not solicit borrowers who are current or less than 30 days delinquent for a workout option.
If the servicer determines that a borrower whose mortgage loan was less than 60 days delinquent did not qualify for any workout options, and the borrower’s mortgage loan subsequently becomes 60 or more days delinquent, the servicer must continue its solicitation and collection efforts with the borrower in accordance with D2-2, Requirements for Contacting a Borrower.
For more information please see: D2-1-01, Determining if the Borrower's Mortgage Payment is in Imminent Default.