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If a request for default aversion assistance is submitted after the 5th day following the default aversion request period (60 – 120 days), the request will be accepted and assistance will begin. However, a due diligence violation of more than 5 days will have occurred. If a delinquency is accelerated based on a payment being returned due to non-sufficient funds, a penalty may not be assessed. If a lender fails to request default aversion assistance between the 60th and 120th day of delinquency, and the lender later submits a claim on that loan, the lender will be subject to an interest penalty. ISAC will not accept a DAAR for a loan more than 270 days delinquent.
A new request for default aversion assistance must be submitted if a previously submitted request has been satisfactorily resolved and the delinquency of the loan again reaches the point at which the lender must request assistance. If, after the lender has submitted a request to the guarantor, the borrower makes payments, but the payments are not sufficient to bring the loan to less than the default aversion assistance cancellation date, it is not necessary to submit a new request. However, the lender must notify the guarantor, via CAM or paper DAAR, of any changes in the delinquency status for a loan that result in a change to the payment due date.
Specific for ISAC
- When a delinquency date falls below 30 days, ISAC must be notified.
- If the original default aversion assistance request is filed timely, between the 60th and 120th days of delinquency, a rejected default aversion assistance request must be received by ISAC no later than the 150th day of delinquency.
For more information on requesting default aversion assistance, refer to the Common Manual.
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