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f. Imminent Default (10/01/2025)
i. Definition
A Borrower facing Imminent Default is defined as a Borrower who is current or less than 30 Days past due on their Mortgage Payment and is experiencing a reduction in income or other hardship that will prevent them from making the next required Mortgage Payment during the month that it is due.
ii. Standard
The Mortgagee must obtain the documentation necessary to verify that the Borrower is experiencing a significant reduction in income or some other hardship that will prevent them from making the next required Mortgage Payment during the month that it is due.
The Mortgagee must obtain, electronically or in hard copy, the following certification from the Borrower:
I am/We are experiencing a reduction in income or the following hardship(s) that will prevent me/us from making the next required Mortgage Payment due on ____________ during the month that it is due: _____________________________________________________________________ ____________________________________________________________________.
I/We, the undersigned, certify under penalty of perjury that the information provided above is true and correct. WARNING: Anyone who knowingly submits a false claim or makes a false statement is subject to criminal and/or civil penalties, including confinement for up to five years, fines, and civil and administrative penalties. (18 U.S.C. §§ 287, 1001, 1010, 1012, 1014; 31 U.S.C. §§ 3729, 3802).
iii. Required Documentation
The Mortgagee must document the basis for the determination that the Borrower’s financial condition will result in a Default and the Borrower’s certification in its Servicing File.
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III. SERVICING AND LOSS MITIGATION A. Title II Insured Housing Programs Forward Mortgages
2. Default Servicing