18.10 PROPERTY PROTECTION [7 CFR 3555.307(b)] (07/02/18)

When a servicer becomes aware that they have properties secured by an Agency guarantee in a PDD they immediately take the following actions:

Ascertain the number of affected properties;
Secure abandoned properties;
Determine the extent and nature of the damage and the effect on the borrower’ ability to continue making mortgage payments;
Determine if the property is adequately insured against the damage;
Provide assistance to the borrower regarding the availability of appropriate relief provisions from local, state or federal disaster assistance;
Consider waiving any late payment charges if the borrower’ payments are late because of added expenses or loss of income due to the disaster;
Monitor and coordinate hazard insurance claims; and
Monitor and coordinate the progression of repairs when a deposit of insurance proceeds occurs in lieu of borrowers receiving insurance proceeds for properties.