§454M-5 - Duties of a mortgage servicer; disclosures; good faith.
[§454M-5] Duties of a mortgage servicer; disclosures; good faith. (a) A mortgage servicer licensed or acting under this chapter, in addition to duties imposed by law, shall:
(1) Safeguard and account for any money handled for the borrower;
(2) Act with reasonable skill, care, timeliness, promptness, and diligence;
(3) Disclose to the commissioner in the application and yearly renewal a complete, current schedule of the ranges of costs and fees it charges borrowers for its servicing-related activities; and
(4) File with the commissioner upon request a report in a form and format acceptable to the director detailing the servicer's activities in this State, including:
(A) The number of mortgage loans the servicer is servicing;
(B) The type and characteristics of such loans in this State;
(C) The number of serviced loans in default, along with a breakdown of thirty-, sixty-, and ninety-day delinquencies;
(D) Information on loss mitigation activities, including details on workout arrangements undertaken;
(E) Information on foreclosures commenced in this State; and
(F) Any other information that the commissioner may require.
(b) At the time a servicer accepts assignment of servicing rights for a mortgage loan, the servicer shall disclose to the borrower all of the following:
(1) Any notice required by the Real Estate Settlement Procedures Act, 12 United States Code Section 2601 et seq., or by regulations promulgated thereunder;
(2) A schedule of the ranges and categories of its costs and fees for its servicing-related activities, which shall comply with this chapter and which shall not exceed those reported to the commissioner; and
(3) A notice in a form and content acceptable to the commissioner that the servicer is licensed by the commissioner and that complaints about the servicer may be submitted to the commissioner.
(c) In the event of a delinquency or other act of default on the part of the borrower, the servicer shall act in good faith to inform the borrower of the facts concerning the loan and the nature and extent of the delinquency or default, and, if the borrower replies, shall negotiate with the borrower, subject to the servicer's duties and obligations under the mortgage servicing contract, if any, to attempt a resolution or workout relating to the delinquency. [L 2009, c 106, pt of §1]