The rules change the procedures and policies for servicing loans in bankruptcy and aim to enhance transparency in the process. Reflecting the recent industry focus on full disclosure and accuracy of accounting, FRBP changes govern the filing of proofs of claim and notice issues related to payment changes, post-petition fees and other accuracy checks to actions and data of the servicer. For instance, the new proof of claim (POC) form requires the servicer to attach a statement itemizing interest, fees, expenses and charges included in the claim along with the amount to cure the default and an escrow account statement prepared as of the date of the petition.
"Fiserv has taken steps to educate our clients and help them adapt to the changes in the bankruptcy procedure before they went into effect," said Joe Dombrowski, Mortgage Strategist, Lending Solutions, Fiserv. "We took a collaborative approach to ensure that our clients, who range from small to top five servicers, have the tools needed to comply with these new compliance requirements."
After the changes were announced, Fiserv worked closely with its clients on evaluating system capabilities to account for items such as POC shortages, payment changes, escrow disbursements made before the effective date chosen by each client, and the date fees, expenses and charges are incurred. "No matter which way our clients choose to do the POC analysis or POC-related charges and expenses, we have determined that our LoanServ platform supports the new requirements," Dombrowski said.