A Georgia servicer sits on a 2026 loss mitigation file, saying it is incomplete but never asking for anything. What diligence duty applies to obtaining information needed to complete the application?
Correct Answer
C) Deficient: reasonable diligence in obtaining the documents is required
A complete loss mitigation application is one where the servicer has received everything it requires to evaluate the options, and the rule adds that a servicer shall exercise reasonable diligence in obtaining documents and information to complete an application. Other choices: incompleteness is what the diligence duty addresses; a checklist at the outset is not diligence throughout; and nothing deems an application complete on receipt. Source: Ga. Comp. R. & Regs. 80-11-6-.01(2)(a)
Why This Is the Correct Answer
A complete loss mitigation application is one where the servicer has received everything it requires to evaluate the options, and the rule adds that a servicer shall exercise reasonable diligence in obtaining documents and information to complete an application. Other choices: incompleteness is what the diligence duty addresses; a checklist at the outset is not diligence throughout; and nothing deems an application complete on receipt. Source: Ga. Comp. R. & Regs. 80-11-6-.01(2)(a)
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