(a) Eligibility for Use of Notice of Exception to Filing a Notice of Payment Change
A creditor may use the procedure in subparagraph (b) of this rule if:
(1) the creditor asserts a claim secured by a security interest in the Debtor’s real estate;
(2) the plan provides for the claim under §1322(b)(5); and
(3) the monthly amount due on the claim changes more than once every 60 days because the creditor’s agreement with the Debtor provides for a variable interest rate and/or a variable payment amount, or the creditor is eligible for the exception in subparagraph (e) of this rule.
(b) Filing and Effect of Filing Notice of Exception to Filing a Notice of Payment Change
A creditor eligible under subparagraph (a) of this rule shall be excused from filing a notice of payment change 21 days prior to the change, if the creditor files a Notice of Exception to Filing a Notice of Payment Change (“Notice of Exception”) and serves that Notice of Exception on the trustee, the Debtor, and the UST. If no objection to the Notice of Exception is filed under subparagraph (c) of this rule, or if the Court determines after objection that the exception should apply, the creditor is excused from filing a Notice of Payment Change other than a change resulting from a change in the interest rate.
(c) Duty to Provide Information
A creditor subject to the exception shall provide to the Debtor and the trustee each month a statement that clearly identifies the payment amount due on the claim. The creditor shall provide to the trustee or the Debtor, upon request, an updated total amount due.
A party in interest may object to the Notice of Exception or the monthly statement provided under subsection (c) of this rule within 21 days after the Notice of Exception is filed or the monthly statement is served.
(e) Limited Exception During Loan Modification Process
If the Debtor files a Motion to Approve Loss Mitigation Agreement, a Motion to Approve a Trial Modification Agreement, or a Motion to Modify Secured Debt (collectively, a “Modification Motion”), the creditor is excused from filing a Notice of Payment Change while that Modification Motion is pending. No later than 21 days after the date of an order approving the Modification Motion, a creditor shall file and serve on the trustee, the Debtor, and the UST a Notice of Payment Change.