As a standard, Right to Cure Notices are produced for delinquent loans in Colorado, Iowa, Kansas, Missouri, Nebraska, South Carolina, West Virginia or Wisconsin (bank or note level Regulatory State Code = CO, IA, KS, MO, NE,SC, WI or WV).These notices are produced instead of late notices.They provide delinquent customers the opportunity to “cure” the delinquency and avoid repossession of collateral by paying delinquent amounts by a specific date.This date is calculated by the LNS System according to state regulations.
The Regulatory State Code must be established on Commercial Loan accounts to assess late charges correctly and produce Right to Cure Notices when LNS option 2769 is used to consider Commercial Loans as a consumer account.If this code is not established on the account, the loan will not be included in the late charge assessment or notice production, even if the option is set up in your BCR.
Right to Cure Notices are produced for all consumer loans (Report Code = Installment) in these states, as well as mortgages (Report Code = Mortgage) in South Carolina, and all Report Codes in Iowa (Commercial, Mortgage, Installment and Revolving Credit). Notices are produced even if the account is in Non-Accrual status.
A copy of the notice is also produced for each Additional Address (regardless of the Additional Address Mail Code) and each Cosigner on the loan.The cosigner’s copy identifies the account holder and the reason for the notice.
Loans with a bank or note-level Regulatory State Code = MO will receive separate notices for each Borrower on the note (Name Lines 1, 2 and 3), regardless of the address.
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Loan Criteria
Loan Criteria for CO, IA, KS, MO, SC, WI, WV
For compliance with Colorado, Iowa, Kansas, Missouri, South Carolina, Wisconsin, and West Virginia regulations, notices are produced for delinquent loans with any of the following Control Categories:
Control Category | Description | Control Category | Description | |
1 | Construction 1-4 Family | K-O | Bank-defined | |
2 | Re-farm Lane | P | Single Family | |
3 | Re-res FHA | R | Multi-unit | |
4 | Re-res VA | S | Multi-5 or More | |
5 | Re-res (not MO ) | T | Bank-defined | |
A | Indiv Stocks | W | Raw land | |
D | Vehicle | X | Mobile Home | |
E | Cons Goods | Y | Share/pbook | |
F | Repair Res | Z | Other Codes | |
G | Pers Instl | = | Construction Other | |
H | Pers Sp | * | Jr Lien Mln | |
I | RES SECURED Coml Line of Credit | < | Commercial Leases | |
J | Others | > | Consumer Leases |
Loan Criteria for NE
For compliance with Nebraska state regulations, notices are produced for loans with any of the following Control Categories OR Collateral Codes:
Control Category | Description | Control Category | Description | Collateral Code | Description | ||
1 | Construction 1-4 Family | R | Multi-unit | @ | 80% App $ | ||
2 | Re-farm Lane | S | Multi-5 or More | # | 85% App $ | ||
3 | Re-res FHA | T | Tax-exempt oblig | % | 90% Appraised | ||
4 | Re-res VA | W | Raw land | O | Bank-defined | ||
5 | Re-res (not MO ) | X | Mobile Home | < | Addn/Remodel | ||
A | Indiv Stocks | Y | Share/pbook | + | Aptmt | ||
D | Vehicle | Z | Other Codes | $ | Const/pur | ||
E | Cons Goods | = | Construction Other | > | Duplx | ||
F | Repair Res | * | Jr Lien Mln | * | Pur/new | ||
G | Pers Instl | < | Commercial Leases | = | Pur/prev | ||
H | Pers Sp | > | Consumer Leases | J | Re-res | ||
I | RES SECURED Coml Line of Credit | # | Non-oc (conv) | ||||
J | Others | $ | Non-oc (improv) | ||||
K-O | Bank-defined | @ | Non-oc (fha-va) | ||||
P | Single Family |
Accounts That Do Not Get a Notice
Right to Cure Notices are NOT produced for:
Loans in Non-Add Status
Loans with a Bankruptcy Chapter established
Comakers of loans with a Bankruptcy Chapter (even if the Comaker does not have a Bankruptcy Chapter established)
Note: Loans in Non-Accrual Status will receive a notice if it has an eligible Control Category or Collateral Code and a Bankruptcy Chapter is not established.
Production Options
Notices are produced on the number of days past the payment due date you specify in LNS option 0291 (10, 15, 20, or 30).
LNS option 2002 allows you to specify a different number of days delinquent for home-equity loans (Reporting Code = Revolving Credit).Note: These options override special production requirements by State. To comply with different production requirements for your state (i.e. WI), leave these options blank.
As an option, you can also choose not to print Right to Cure Notices (LNS option 0291 = 9). This should only be selected if your bank is using another means of communication, such as a notarized letter, to fulfill the Right to Cure requirements.
The information stored in the Property Description field is listed on the notice and the payment coupon to identify the collateral. If additional collateral was used to secure the note, the information stored in all Property Description 1-4 fields will be printedProperty Description 1-4 fields will be printed on the notice when LNS option 3235 is established. Some states require this notification before you can take action against the collateral securing the loan.
Two copies of the notice are printed, one for the customer and one for bank archival purposes.The archival copy is marked ‘Bank Copy’ and includes the Date Mailed (one day following the processing date).If you are using Premier Print, the bank copy will be delivered to the bank.LNS option 3088 can be used to eliminate the bank archival copy.