[§454M-5]  Duties of a mortgage
servicer; disclosures; good faith.  (a)  A mortgage servicer licensed or
acting under this chapter, in addition to duties imposed by law, shall:



(1)  Safeguard and account for any money handled for
the borrower;



(2)  Act with reasonable skill, care, timeliness,
promptness, and diligence;



(3)  Disclose to the commissioner in the application
and yearly renewal a complete, current schedule of the ranges of costs and fees
it charges borrowers for its servicing-related activities; and



(4)  File with the commissioner upon request a report
in a form and format acceptable to the director detailing the servicer's
activities in this State, including:



(A)  The number of mortgage loans the servicer
is servicing;



(B)  The type and characteristics of such loans
in this State;



(C)  The number of serviced loans in default,
along with a breakdown of thirty-, sixty-, and ninety-day delinquencies;



(D)  Information on loss mitigation activities,
including details on workout arrangements undertaken;



(E)  Information on foreclosures commenced in
this State; and



(F)  Any other information that the
commissioner may require.



(b)  At the time a servicer accepts assignment
of servicing rights for a mortgage loan, the servicer shall disclose to the
borrower all of the following:



(1)  Any notice required by the Real Estate Settlement
Procedures Act, 12 United States Code Section 2601 et seq., or by regulations
promulgated thereunder;



(2)  A schedule of the ranges and categories of its
costs and fees for its servicing-related activities, which shall comply with
this chapter and which shall not exceed those reported to the commissioner; and



(3)  A notice in a form and content acceptable to the
commissioner that the servicer is licensed by the commissioner and that
complaints about the servicer may be submitted to the commissioner.



(c)  In the event of a delinquency or other act
of default on the part of the borrower, the servicer shall act in good faith to
inform the borrower of the facts concerning the loan and the nature and extent
of the delinquency or default, and, if the borrower replies, shall negotiate
with the borrower, subject to the servicer's duties and obligations under the
mortgage servicing contract, if any, to attempt a resolution or workout
relating to the delinquency. [L 2009, c 106, pt of §1]