Cure Procedures. If a claim has been rejected due to due diligence deficiencies, the guaranty will be reinstated if: - the Servicer collects from the Borrower sufficient payments to reduce the Borrower's delinquency, according to the Borrower's existing payment schedule, to less than 30 days; or - the Servicer brings the Borrower back into repayment by capitalizing all accrued interest, applying administrative forbearance to eliminate any delinquency in principal and interest payments, redisclosing the loan with a new payment schedule, and collecting from the Borrower three consecutive, on-time payments according to such new schedule. For this second type of cure, at the time the Servicer files its request for reinstatement the loan must be within 30 days of being current. For these purposes, a payment is considered "on time" if received no later than seven days after the agreed upon due date. In addition, the payment amounts actually received from the Borrower must be within a tolerance of no more than $5.00 of the established monthly payment. Nothing in these Guidelines requires a Servicer to submit a guaranty claim that it knows will be rejected for due diligence deficiencies; the Servicer may retain the account and attempt to restore the loan to current status. If a claim is rejected and it is later determined that a processing error (e.g., application of forbearance to the wrong account number) made prior to the claim filing date caused an incorrect delinquency and if corrected the loan would be brought to less than 30 days delinquent, the loan can be recalled and the rejected claim status removed. If a due diligence failure is cured by the second method stated above, including capitalization of the accrued interest portion of some or all delinquent payments, and if such loan subsequently defaults, ▇▇▇▇ will not pay such capitalized interest. A loan may be cured only once. A loan may be cured for any servicing errors but not for an error in the underwriting or origination of the loan. After the loan is cured, the Borrower will still qualify for any remaining hardship forbearance that he or she may still be eligible to use. GUIDELINE AMENDMENT PROCEDURES Any amendments, changes or revisions to these guidelines must be agreed to by ▇▇▇▇, the Originator, the Lender and the Servicer in writing prior to implementation, provided however that the Servicer's consent will not be required for any amendment of the amount of any Borrower Guaranty Fee or Lender Supplemental Guaranty Fee. Further, unless required by either state or federal regulatory requirements, the introduction of any amendments, changes or revisions to these guidelines will generally take place in the spring of each year so that they will be in place for the upcoming academic year. In general the effective dates for the changes will be June 1st. This will be considered the loan program academic year. In no case will amendments, changes or revisions to these guidelines be introduced later than June 1 of any year unless agreed to by ▇▇▇▇, the Originator, the Lender and the Servicer. ▇▇▇▇ will provide the Lender, Servicer and Originator with at least sixty (60) days written notice of proposed Program Guidelines changes so as to allow all of them time to review and comment on them. ▇▇▇▇ will if requested meet with any one or more of the Lender, Servicer and Originator shortly after the expiration of the sixty-day review period in order to discuss the suggested Program Guidelines changes. Comments concerning modifications or changes to the suggested Program Guidelines may be accepted by ▇▇▇▇ at its sole discretion. If, within the 60-day period described above, or such longer period as ▇▇▇▇ may stipulate when it circulates proposed changes, ▇▇▇▇ receives no comments from any other party that would require revision of the proposed changes, the changes will be deemed accepted and will become final and take effect as provided in TERI's notice. If, however, ▇▇▇▇ does receive comments that would require revision, it will circulate a response, together with such revision as it deems appropriate, and he Lender, Servicer and Originator will have sixty (60) days from the date that they receive such response to either reject or accept the revision, provided that none of them may unreasonably reject any proposed change that does not affect the commercial expectations of the parties in entering into the respective agreements between or among them. Their acceptance will be deemed given if they do not reject the revision in this second 60-day period. All notifications to ▇▇▇▇ must be in writing. If the revised Program Guidelines are rejected by the Lender, Servicer, or Originator, all parties will adhere to the previously adopted Program Guidelines. If all parties agree (or are deemed to agree) to adopt the new, revised Program Guidelines, the Servicer or Originator, as the case may be, shall have at least sixty (60) days to implement new changes. If the Servicer needs additional time to implement the agreed upon changes, the Servicer shall notify both ▇▇▇▇ and the Lender of the need for additional time setting forth the reasons for such request. ▇▇▇▇ and the Lender will not unreasonably deny the Servicer's request for additional time unless the request is due to the Servicer's negligence in the implementation of the agreed upon changes. CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE SYMBOL "[****]" HAS BEEN INSERTED IN PLACE OF THE PORTIONS SO OMITTED. EXHIBIT B ESCROW ACCOUNT PROVISIONS
Appears in 2 contracts
Sources: Private Consolidation Loan Origination Responsibility Agreement (Collegiate Funding Services Inc), Private Consolidation Loan Origination Responsibility Agreement (Collegiate Funding Services Inc)
Cure Procedures. If a claim has been rejected due to due diligence deficiencies, the guaranty will be reinstated if: - the Servicer collects from the Borrower sufficient payments to reduce the Borrower's delinquency, according to the Borrower's existing payment schedule, to less than 30 days; or - the Servicer brings the Borrower back into repayment by capitalizing all accrued interest, applying administrative forbearance to eliminate any delinquency in principal and interest payments, redisclosing the loan with a new payment schedule, and collecting from the Borrower three consecutive, on-time payments according to such new schedule. For this second type of cure, at the time the Servicer files its request for reinstatement the loan must be within 30 days of being current. For these purposes, a payment is considered "on time" if received no later than seven days after the agreed upon due date. In addition, the payment amounts actually received from the Borrower must be within a tolerance of no more than $5.00 of the established monthly payment. Nothing in these Guidelines requires a Servicer to submit a guaranty claim that it knows will be rejected for due diligence deficiencies; the Servicer may retain the account and attempt to restore the loan to current status. If a claim is rejected and it is later determined that a processing error (e.g., application of forbearance to the wrong account number) made prior to the claim filing date caused an incorrect delinquency and if corrected the loan would be brought to less than 30 days delinquent, the loan can be recalled and the rejected claim status removed. If a due diligence failure is cured by the second method stated above, including capitalization of the accrued interest portion of some or all delinquent payments, and if such loan subsequently defaults, ▇▇▇▇ will not pay such capitalized interest. A loan may be cured only once. A loan may be cured for any servicing errors but not for an error in the underwriting or origination of the loan. After the loan is cured, the Borrower will still qualify for any remaining hardship forbearance that he or she may still be eligible to use. GUIDELINE AMENDMENT PROCEDURES Any amendments, changes or revisions to these guidelines must be agreed to by ▇▇▇▇, the Originator, the Lender and the Servicer in writing prior to implementation, provided however that the Servicer's consent will not be required for any amendment of the amount of any Borrower Guaranty Fee or Lender Supplemental Guaranty Fee. Further, unless required by either state or federal regulatory requirements, the introduction of any amendments, changes or revisions to these guidelines will generally take place in the spring of each year so that they will be in place for the upcoming academic year. In general the effective dates for the changes will be June 1st. This will be considered the loan program academic year. In no case will amendments, changes or revisions to these guidelines be introduced later than June 1 of any year unless agreed to by ▇▇▇▇, the Originator, the Lender and the Servicer. ▇▇▇▇ will provide the Lender, Servicer and Originator with at least sixty (60) days written notice of proposed Program Guidelines changes so as to allow all of them time to review and comment on them. ▇▇▇▇ will if requested meet with any one or more of the Lender, Servicer and Originator shortly after the expiration of the sixty-day review period in order to discuss the suggested Program Guidelines changes. Comments concerning modifications or changes to the suggested Program Guidelines may be accepted by ▇▇▇▇ at its sole discretion. If, within the 60-day period described above, or such longer period as ▇▇▇▇ may stipulate when it circulates proposed changes, ▇▇▇▇ receives no comments from any other party that would require revision of the proposed changes, the changes will be deemed accepted and will become final and take effect as provided in TERI's notice. If, however, ▇▇▇▇ does receive comments that would require revision, it will circulate a response, together with such revision as it deems appropriate, and he Lender, Servicer and Originator will have sixty (60) days from the date that they receive such response to either reject or accept the revision, provided that none of them may unreasonably reject any proposed change that does not affect the commercial expectations of the parties in entering into the respective agreements between or among them. Their acceptance will be deemed given if they do not reject the revision in this second 60-day period. All notifications to ▇▇▇▇ must be in writing. If the revised Program Guidelines are rejected by the Lender, Servicer, or Originator, all parties will adhere to the previously adopted Program Guidelines. If all parties agree (or are deemed to agree) to adopt the new, revised Program Guidelines, the Servicer or Originator, as the case may be, shall have at least sixty (60) days to implement new changes. If the Servicer needs additional time to implement the agreed upon changes, the Servicer shall notify both ▇▇▇▇ and the Lender of the need for additional time setting forth the reasons for such request. ▇▇▇▇ and the Lender will not unreasonably deny the Servicer's request for additional time unless the request is due to the Servicer's negligence in the implementation of the agreed upon changes. CERTAIN PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE SYMBOL "[****]" HAS BEEN INSERTED IN PLACE OF THE PORTIONS SO OMITTED. EXHIBIT B ESCROW ACCOUNT PROVISIONS
Appears in 1 contract
Sources: Private Consolidation Loan Origination Responsibility Agreement (Collegiate Funding Services Inc)