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(a) An institution that proposes to service a loan owned by the Corporation must have financial viability, in-state servicing capabilities, and general capacity to act as a servicer sufficient, in the sole judgment of the Corporation, to demonstrate full capacity and ability to provide complete servicing for the loan.
(b) Before the Corporation will permit an institution to service a loan owned by the Corporation, the institution must enter into a servicing agreement with the Corporation. The servicing agreement or the servicers' guide will:
(1) provide acceptable methods for delinquent collections and foreclosures by the servicer;
(2) provide for periodic reports to be provided to the Corporation by the servicer; and
(3) require the servicer to service mortgages in accordance with acceptable mortgage practices of prudent lending, including, but not limited to, the exercising of diligence in collecting amounts due under mortgages;
(4) contain a provision for liquidated damages to be offset against the service fee whenever a loan servicer fails to make timely remittance to the Corporation of loan payments from a borrower;
(5) contain a provision requiring the servicer to do all things necessary to foreclose liens and to manage the subject property, when required by the Corporation;
(6) contain a provision requiring the servicer to report the cessation of owner-occupancy, if such information becomes known to the servicer;
(7) contain a provision granting the Corporation the discretion to suspend, terminate, or rescind the servicing agreement if any remittance is more than 30 days late and for other reasons as may be stated in the servicing agreement;
(8) contain a provision granting the Corporation the discretion to suspend or to rescind the servicing agreement if the servicer's delinquency rate becomes excessive, as determined by the executive director.
(c) In addition to the provisions in 15 AAC 150.090(b) , a servicing agreement may include a provision allowing the servicer to charge the borrower an origination fee.
(d) The servicers' guide shall:
(1) be prepared and revised as the executive director considers appropriate;
(2) establish criteria for the format, timeliness, and remittance of reports and funds due the Corporation; and
(3) require submission of other documents and materials as the executive director considers desirable.
(e) In this section:
(1) "timely remittance" means a remittance received by the Corporation according to the required procedures as noted in the servicers' guide; and
(2) "liquidated damages" means the penalty and fees as outlined in the servicing agreement described in 15 AAC 150.090(b) and the servicers' guide.
History: Eff. 5/7/93, Register 130
Authority: AS 15.56.088 (c)(4)
Editor's note: Before Register 130, July, 1994, the substance of 15 AAC 150.090 was contained in former 15 AAC 118.260 and 19 AAC 80.130. The history note for 15 AAC 150.090 does not reflect the history of the sections under 15 AAC 118.260 and 19 AAC 80.130.
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Last modified 7/05/2006