When a Borrower Dies: Actions to Take, Mistakes to Avoid
When a borrower passes away, lenders face a host of sensitive, complex issues. Who has authority to act? What happens to automatic payments? Can you offset or freeze accounts? How do successor-in-interest and estate laws apply? Failure to handle these issues properly can lead to regulatory scrutiny, reputational harm, and costly mistakes.
AFTER THIS WEBINAR YOU’LL BE ABLE TO:
- Describe the immediate actions to take after you receive notice that a borrower has died
- Understand your institution’s setoff rights and what other parties may be held liable for repayment
- Explain the successor-in-interest rules, including limitations under the Garn-St. Germain Depository Institutions Act
- Handle automatic payments, defaults, accelerations, and workout options
- Identify what steps to take when a probate estate is opened and or is not opened
WEBINAR DETAILS
This webinar will walk through the legal, regulatory, and operational requirements that arise when a borrower dies, including federal rules (such as the successor-in-interest mortgage servicing requirements), state probate procedures, deposit account issues, and best practices for handling secured and unsecured debt. Participants will learn practical steps to protect the institution and avoid common errors.
WHO SHOULD ATTEND?
This informative session is designed for loan officers, deposit operations staff, compliance professionals, auditors, risk officers, and in-house legal counsel and staff.
