D.C. Mun. Regs. tit. 26, r. 26-C2703

Current through Register Vol. 71, No. 49, December 6, 2024

Rule 26-C2703 - MAILING OF NOTICE OF DEFAULT ON RESIDENTIAL MORTGAGE

2703.1

A lender issuing a Notice of Default on Residential Mortgage (Form FM-1) shall mail to the property subject to the residential mortgage and the last known address of the borrower, by certified first-class mail, postage prepaid, return receipt requested, and by first-class mail, a copy of the Notice of Default on Residential Mortgage (Form FM-1), including all information required by Subsection 2703.3, upon each borrower for which the Notice of Default on Residential Mortgage is mailed.

2703.2

In the event there is more than one (1) borrower, a copy of the Notice of Default on Residential Mortgage (Form FM-1) shall be mailed to all borrowers on the same day.

2703.3

Each copy of the Notice of Default on Residential Mortgage (Form FM-1) mailed to a borrower shall be accompanied by the following:

(a) Borrower Assistance and Resource Information Form (Form FM -1BA), with all information to be provided by the lender as required by Form FM-1BA, which is prescribed by the Commissioner and available on the Commissioner's website at http://disb.dc.gov;

(b) Contact information which the borrower may use to reach the lender or an agent of the lender with authority to explain the mediation process;

(c) A description of all loss mitigation programs available from the lender and applicable to the residential mortgage for which the Notice of Default on Residential Mortgage is being issued. For each loss mitigation program, the lender shall provide a description of the eligibility requirement(s) and documentation necessary for the loss mitigation programs applicable to the residential mortgage subject to the Notice of Default on Residential Mortgage;

(d) A complete Loss Mitigation Application;

(e) Instructions for completing and mailing the Loss Mitigation Application;

(f) A Mediation Election Form (Form FM-2);

(g) An envelope for the borrower to return to the lender a copy of the Mediation Election Form (Form FM-2) and the Loss Mitigation Application. The envelope shall be preaddressed to the lender's office that will review the Loss Mitigation Application and prepare the loss mitigation analysis required by Subsection 2713.2; and,

(h) An envelope for the borrower to return the Mediation Election Form (Form FM-2) and a copy of the Loss Mitigation Application to the Mediation Administrator. The envelope shall be preaddressed as follows:

Mediation Administrator

Department of Insurance, Securities and Banking

810 First Street, NE

Suite 701

Washington, DC 20002

2703.4

Within two (2) business days of the mailing date of the Notice of Default on Residential Mortgage, the lender shall send to the Mediation Administrator by electronic mail to DISB.mediation@dc.gov a copy of the Notice of Default on Residential Mortgage that was sent to the borrower(s) pursuant to Subsection 2703.1, including all attachments required by Subsection 2703.3.

2703.5

The lender shall send to the Mediation Administrator by regular first class mail a copy of the Notice of Default on Residential Mortgage that has been submitted to the Mediation Administrator pursuant to Subsection 2703.4, accompanied by a six-hundred dollars ($600) money order, check or cashier's check payable to the "District of Columbia Treasurer." No other form of payment will be accepted.

2703.6

Any Notice of Default on Residential Mortgage (Form FM-1) that is submitted to the Mediation Administrator that is not in compliance with section 2703 may be cancelled, unless the Mediation Administrator determines that the noncompliance was harmless error. The Mediation Administrator shall notify each borrower that was mailed the Notice of Default on Residential Mortgage (Form FM-1) of the cancellation.

2703.7

Any costs incurred by the lender in connection with a Notice of Default on Residential Mortgage (Form FM-1) that is cancelled pursuant to Subsection 2703.6 shall not be assessed to a borrower.

2703.8

A Notice of Default on Residential Mortgage (Form FM-1) submitted to the Mediation Administrator shall be accompanied with a completed Lender Foreclosure Mediation Agent Contact Form (Form FM-1AC) which requires the lender to provide the name and contact information for the individual or business group responsible for coordinating the default and foreclosure process.

2703.9

The Lender Foreclosure Mediation Agent Contact Form (Form FM-1AC) required by Subsection 2703.8 shall be in the form as prescribed by the Commissioner and available on the Commissioner's website at http://disb.dc.gov, and shall include all information specified in Form FM-1AC.

2703.10

The following shall accompany the Notice of Default on Residential Mortgage that is submitted to the Mediation Administrator and shall be available to the borrower(s) upon request:

(a) A recorded copy of the mortgage or deed of trust;

(b) A true copy of the note secured by the mortgage showing a proper chain of endorsements, or an Affidavit of Acknowledgement of Note Ownership or similar document signed by the foreclosing lender or its agent stating that the foreclosing lender is the holder of the note;

(c) A true copy of every recorded assignment of the mortgage vesting of record the beneficial interest of the foreclosing lender;

(d) The name of the holder of the note;

(e) The location of the note; and

(f) A true copy of all pooling and servicing or other similar agreements affecting the residential mortgage that pertain to the loss mitigation programs offered and loss mitigation analysis.

2703.11

A lender shall provide a written explanation to the Mediation Administrator for the reason(s) that a document or information required in Subsection 2703.10 is not applicable to the residential mortgage.

2703.12

A lender shall retain all evidence of mailing of a Notice of Default on Residential Mortgage (Form FM-1) to each borrower for a period of two (2) years.

2703.13

The Affidavit of Mailing of Notice of Default, which is included with the Notice of Default on Residential Mortgage, shall have the same mailing date as the Notice of Default on Residential Mortgage unless the Mediation Administrator determines that good cause is shown for the different mailing dates.

D.C. Mun. Regs. tit. 26, r. 26-C2703

Emergency and Proposed Rulemaking published at 58 DCR 2958 (April 8, 2011)[EXPIRED]; as amended by Emergency and Proposed Rulemaking published at 58 DCR 8247 (September 23, 2011)[EXPIRED]; as amended by Final Rulemaking published at 58 DCR 11469 (December 30, 2011); as amended by Final Rulemaking published at 61 DCR 6390 (June 27, 2014)

Authority: Section 539 b of An Act to establish a code of law for the District of Columbia, approved March 3, 1901 (31 Stat. 1189; D.C. Official Code § 42-815.02(j) (2012 Repl.)), and Mayor's Order 2011-51, dated March 2, 2011.