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a. Servicing in Compliance with Law (11/07/2023)
i. Definition
The Loan Holder is the entity who holds title to the FHA-insured Loan and has the right to enforce the loan agreement.
The Loan Servicer is the entity responsible for performing servicing actions on FHA- insured Loans on its behalf or on behalf of or at the direction of another FHA-approved Lender.
ii. Standard
Lenders must ensure all Title I FHA-insured Loans are serviced in accordance with FHA requirements and all applicable laws.
Lenders must service all FHA-insured Loans in accordance with FHA requirements and all applicable laws.
Lenders must comply with all laws, rules, and requirements applicable to loan servicing, including full compliance with the applicable requirements under the purview of the Consumer Financial Protection Bureau (CFPB), including the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA).
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III. SERVICING AND LOSS MITIGATION C. Title I Insured Programs
2. Title I Manufactured Home Loan Program
Lenders must comply with all antidiscrimination laws, rules, and nondiscrimination and equal opportunity statutes, regulations, contract provisions, and other requirements applicable to servicing performing FHA-insured Loans and FHA-insured Loans in Default, including full compliance with the applicable requirements of:
• Fair Housing Act, 42 U.S.C. §§ 3601–3619;
• the Fair Credit Reporting Act (FCRA), 15 U.S.C. §§ 1681–1681x; and
• the Equal Credit Opportunity Act (ECOA), 15 U.S.C. §§ 1691–1691f.
The Lender must make all determinations with respect to the adequacy of the Borrower’s income in a uniform manner without regard to race, color, religion, sex, age, national origin, familial status, disability, marital status, receipt of public assistance, because the applicant has in good faith exercised any right under the Consumer Credit Protection Act, or location of the Property.