Q: Do the servicing calling requirements differ among investors for delinquent loans?
A: Yes. According to FNMA and FHLMC, Servicers must initiate outbound contact attempts with each newly delinquent borrower no later than the 36th day of delinquency. Servicers must continue contact attempts every fifth day until one of the following outcomes is attained:
- Quality right party contact (QRPC) is achieved and the borrower has provided a promise to pay the delinquent amount by a specified date (not to exceed 30 days);
- Quality right party contact (QRPC) is achieved and/or the borrower adheres to any loss mitigation agreement made with the Servicer;
- Quality right party contact (QRPC) is achieved and the borrower indicates that he or she is not interested in a workout option;
- The borrower enters into a relief or workout option with the Servicer;
- Complete Borrower Response Package is received in accordance with the requirements;
- Delinquency is resolved.
After the 210th day of delinquency Servicers are authorized to continue outbound contact attempts at their discretion.
Under HUD guidelines, Servicers must initiate outbound contact attempts with each newly delinquent borrower by the 17-20th day of delinquency and continue contact attempts at a minimum of two times per week until one of the following outcomes is attained:
- Contact is established; or
- The Servicer has determined through an occupancy inspection that the mortgaged property is vacant or abandoned.
Additionally, the Servicer is expected to:
- Vary the times and days of the week of call attempts to maximize the likelihood of making contact with the Borrower; and
- Have policies in place to reduce the call abandon rate and minimize the call wait time.
Promptly after establishing live contact, the Servicer must determine whether the borrower is occupying the property, ascertain the reason for the delinquency, and inform the borrower about the availability of loss mitigation options.