Compensatory Payments for Foreclosure Timelines Sample Clauses
The "Compensatory Payments for Foreclosure Timelines" clause establishes the obligation for one party, typically a borrower or servicer, to make financial payments if foreclosure proceedings are not completed within a specified timeframe. In practice, this clause sets clear deadlines for the completion of foreclosure actions and outlines the amount and conditions under which compensatory payments must be made if those deadlines are missed. Its core function is to incentivize timely foreclosure processes and compensate the affected party, often the lender or investor, for delays that could result in financial losses or increased costs.
Compensatory Payments for Foreclosure Timelines. The Mandatory Term of any Subservicing Agreement shall include terms requiring each Approved Subservicer to make compensatory payments, in the form of a reduction in the Base Servicing Fee (“Compensatory Payment”), for each Subserviced Loan as to which the Approved Subservicer fails to adhere to the GSE foreclosure timelines, as set forth in the ▇▇▇▇▇▇ Mae Servicing Guide, Part VIII, Section 106.08 (Allowable Time Frames for Completing Foreclosure), subject to any normal and customary changes to such guide, plus 120 days. The calculation of the Compensatory Payment shall exclude from the timeline calculation allowable delays that are beyond the Approved Subservicer’s control, including, but not limited to, court mandated and processing delays, Homeowner Borrower Relief regulations, other regulatory or compliance issues, including restarts, holds and delays, and the allowable delays set forth in the ▇▇▇▇▇▇ ▇▇▇ Servicing Guide, Part I, Section 201.11.07 (subject to any amendments or changes to such guide). The Compensatory Payment shall be calculated and paid as follows: