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Borrower Assistance Package

The complete set of documents required by the servicer for a loss mitigation review — also called a Complete Loss Mitigation Application (CLMA).

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Loan Modification & Loss Mitigation

A Borrower Assistance Package (also called a Loss Mitigation Application, Complete Package, or Complete Loss Mitigation Application / CLMA) is the full set of documents a homeowner submits to the servicer to apply for loss mitigation: loan modification, forbearance, repayment plan, short sale, or deed-in-lieu. Under CFPB Regulation X (12 CFR § 1024.41), a servicer must review a 'complete loss mitigation application' — incomplete applications may be returned. A complete package typically includes: (1) Borrower Assistance Form / Uniform Borrower Assistance Form (Form 710), (2) Hardship Affidavit explaining the financial difficulty, (3) Financial Worksheet listing income and expenses, (4) 30 days of current pay stubs, (5) 60 days of bank statements (all pages), (6) 2 years of most recent tax returns (all schedules), (7) Profit & Loss statement (if self-employed, last 3 months), (8) Evidence of other income (rental, alimony, child support, Social Security), (9) IRS Form 4506-C (or 4506-T) authorizing the servicer to request tax transcripts, and (10) any additional documents the servicer specifically requests. A complete package triggers the servicer's duty to review and respond within 30 days.

Purpose

  • 1Provide the servicer with all documentation required to evaluate eligibility for loss mitigation
  • 2Trigger the servicer's regulatory obligation to review and respond within 30 days under CFPB Regulation X
  • 3Create a complete record that can be used to enforce dual tracking prohibitions
  • 4Establish the borrower's income, expenses, and hardship for a loss mitigation determination

Who Prepares It

The homeowner gathers and submits all documents. A HUD-certified housing counselor or attorney can assist in organizing the package and ensuring completeness.

When It Is Used

Submitted when the homeowner seeks any form of loss mitigation: loan modification, forbearance, repayment plan, short sale, or deed-in-lieu. Must be submitted before the servicer's foreclosure referral deadline (typically 37+ days before the scheduled sale) to trigger dual tracking protections.

Legal Effect

A complete loss mitigation application triggers the servicer's obligations under CFPB Regulation X: (1) acknowledge receipt within 5 days, (2) notify the borrower of any missing documents within 5 days, (3) evaluate the complete application within 30 days, (4) if denied, provide specific reasons and an appeal period, and (5) not proceed with foreclosure while a complete application is pending (dual tracking prohibition). An incomplete application does NOT trigger these protections — completeness is critical.

Common Mistakes

Submitting an incomplete application — missing even a single required document means the application is 'facially incomplete' and does NOT trigger dual tracking protections
Not keeping proof of submission — always send via certified mail, fax with confirmation, or email with delivery receipt
Failing to follow up — if the servicer doesn't acknowledge receipt within 5 days, follow up; applications get lost

Homeowner Rights

Right to have a complete application evaluated within 30 days (CFPB Regulation X)
Right to dual tracking protection — the servicer cannot proceed with foreclosure while a complete application is pending
Right to appeal a denial within 14 days of the denial notice
Right to be notified of any missing documents within 5 business days

Frequently Asked Questions

What triggers dual tracking protection?

A 'complete loss mitigation application' triggers dual tracking protection under CFPB Regulation X (§ 1024.41(g)). The servicer cannot move for foreclosure judgment, conduct a foreclosure sale, or order a foreclosure sale while a complete application is pending. To be 'complete,' the application must include ALL documents the servicer requires — missing even one pay stub means the application is incomplete and does NOT trigger protection. This is why it's critical to confirm with the servicer IN WRITING that your application is complete.

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