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The second process, Formal Loss Mitigation, involves Loss Mitigation Management and Loss Mitigation Options. One Loss Mitigation Option is a curable default which is either a Special Forbearance or Loan Modification option. A noncurable loss mitigation option includes a Pre-Foreclosure Sale or Deed-In-Lieu of Foreclosure.

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Task	Description	Time Period
Loss Mitigation Management	Report loss mitigation actions Reevaluate each delinquent loan until current, foreclosed or otherwise liquidated Maintain documentation of the evaluations in its servicing or collection systems The evaluation may be as simple as notes in the collection system that the borrower’s payments under special forbearance are made as agreed Reports generated by servicing systems that track repayment plans are adequate for documentation purposes All documentation should be retained for a period of seven years	Monthly.
Loss Mitigation Options	Evaluate each delinquent loan to determine which loss mitigation option is appropriate	Before the 90th day of delinquency.
Loan Modification ReDefaults	The Servicer must extend additional efforts to a borrower whose mortgage has been modified under the loan modification workout option.	During the first three months after the mortgage is modified, call the borrower within five Business Days after the payment Due Date (if the payment is not remitted), to remind the borrower that the payment was due on the first day of the month By the 10th day of Delinquency, call the borrower if the payment has not been received by that date On the 45th day of Delinquency, send the Notice of Default to the borrower

The Monthly Default Reporting and Quarterly Status Reporting should be completed using the Electronic Data Interchange (EDI) Status of Mortgage Code values.

The Servicer must ensure the borrower has received updated payment coupons prior to the Due Date of the first payment.