E-3.2-01: Conducting Prereferral Review (07/14/2021)

The servicer must perform a prereferral review of the mortgage loan within 15 days prior to the date the servicer is required to refer the mortgage loan to foreclosure (see also E-3.1-02, Performing Due Diligence Prior to Considering Foreclosure). Before the review, the breach or acceleration letter and the Borrower Solicitation Package deadline must have expired without affirmative response from the borrower.

For all mortgage loans:

The prereferral review must ensure that all procedures relating to establishing QRPC as outlined in D2-2-01, Achieving Quality Right Party Contact with a Borrower D2-2-01, Achieving Quality Right Party Contact with a Borrower were followed and that:

• an approved payment arrangement is not pending;

• a complete BRP has not been received; or

• if a complete BRP has been received, the servicer has determined that either the borrower is not eligible for a workout option or the servicer has extended an offer for a workout option and the borrower has not accepted the offer within the required time frame specified in the Evaluation Notice.

  Note: The servicer must not delay referral to foreclosure if the time frame for the borrower to respond to an offer for a workout option has expired.

For mortgage loans secured by a principal residence:

During any prereferral review period or before the servicer has made the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process that pertains to a mortgage loan secured by a principal residence, the servicer must not refer the mortgage loan to foreclosure under any of the following circumstances:

• there is an approved payment arrangement for a workout option;

• a complete BRP has been received and the servicer is within the 30-day time period for evaluating the complete BRP;

• the servicer has extended an offer for a workout option, including a Trial Period Plan, and the borrower’s response time period has not expired;

• the borrower has accepted an offer for a workout option and is performing in accordance with its terms; or

• the time period for the borrower to exercise any right of appeal as described in D2-2-07, Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence D2-2-07, Resolving an Appeal of a Mortgage Loan Modification Trial Period Plan Denial for a Principal Residence has not expired, the servicer is evaluating the borrower’s appeal, or the time period following the servicer’s appeal decision for the borrower to accept any offer for a workout option has not expired.

See also E-3.2-04, Postponing Foreclosure Referral for Mortgage Loans Not Secured by a Principal Residence for additional information.

The following table provides references to Announcements that are related to this topic.