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TRANSFER LOANS
The contractor may be required to cease servicing
activity on a borrower's loans so that an agency may transfer
loans to another servicer. Agencies may issue task orders that
include requirements for this service which contains services
similar to the those described below. A task order may require
any combination of these services. These services illustrate
some of the types of tasks that the contractor may be required
to perform under this contract, but this is not intended to
be an all inclusive list. Rather, it illustrates the types of
services a contractor may provide.
When required, agencies may issue task orders
to transfer loans which may require, but are not limited to
the following types of tasks:
- The contractor may be required to send all appropriate records,
data and documents pertaining to any accounts transferred
to a new location specified by an agency. This might include
both electronic, optically imaged and hardcopy records. In
addition to data sent to the agency’s central database on
a regular, periodic basis, all records of borrower contact,
collection histories and all imaged documents pertaining to
transferred accounts may be required to be sent. The contractor
will also forward any documents subsequently received on a
borrower's account to the new location.
- The contractor may be required to maintain all of a borrower's
loan records (electronic and physical) in such a manner that
the loans can be readily transferred to the agency or its
designee to support a smooth transition of servicing activities.
- The contractor may be required, within a specified time
period from the date a loan is transferred, to provide a notice
to the borrower of:
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the transfer action and effective date |
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the address of the new collection point to which subsequent
correspondence and payments must be sent, if any |
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the telephone numbers of points of contact at both
the former contractor and the new contractor. |
TRANSFER DEFAULTED LOANS
Agencies may require a contractor to perform some or all
of the tasks associated with transferring defaulted loans for
the loans being serviced by the contractor. Agencies may issue
task orders that include requirements for this service which
contains services similar to the those described below. A task
order may require any combination of these services. These services
illustrate some of the types of tasks that the contractor may
be required to perform under this contract, but this is not
intended to be an all inclusive list. Rather, it illustrates
the types of services a contractor may provide.
An agency shall provide the specific circumstances
which place a loan in default status. This normally includes
such factors as:
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the borrower’s (and endorser, if applicable)
failure to make an installment payment when due or meet
other terms of the promissory note |
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the documented appearance of actions which lead to a
reasonable conclusion that the borrower no longer intends
to honor the obligation to repay |
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the documented appearance of actions which lead to a
reasonable conclusion that the borrower no longer intends
to honor the obligation to repay |
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the failure to repay persists for time period specified
by the ordering agency |
When required, agencies may issue task orders
that include the transferring of defaulted loans which may require,
but are not limited to the following types of tasks:
- The contractor may be required to transfer defaulted loan
data to an agency’s central database for the purpose of transferring
the loan to an agency's Debt Collection Service (DCS).
- After the contractor has sent a final demand letter or other
such notice to the borrower and received no response from
the borrower for a specified time period, the contractor may
be required to submit a transaction to the agency’s central
database notifying it that the loan is in default. Collection
responsibility for the loan may then be transferred to DCS
for enforced collection.
- Since the transfer of the defaulted loan changes the party
to whom the borrower must send subsequent payments, the contractor
may be required to, within a specified time period from the
date a loan is transferred, provide a notice to the borrower
with information required by the ordering agency such as:
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the transfer action and effective date |
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the name and address of the new collection point to
which subsequent payments and correspondence must be
sent |
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the telephone numbers of points of contact at both
the contractor and DCS. |
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