NEW LMM PROGRAM REVISIONS

The Court has adopted a number of revisions to its LMM Program.  Amended procedures and forms may be found at http://www.ncmb.uscourts.gov/loan-modification-management-program and are to take effect immediately.  For your convenience, here is a summary of the major revisions:

 

Procedures:

  • The Program Manager is no longer a “Required Party.”
  • In Section 6, the 12-month deadline to seek referral to the LMM Program has been removed. (See Form 1b)
  • The Bankruptcy Administrator and Program Manager have been deleted from the list of parties to be served with the Motion for Loan Modification Management.
  • The requirement that the Order for Loan Modification Management be served within 2 business days of entry of the Order has been added.
  • The tentative hearing notice and objection deadline provision for failure to participate in good faith has been removed.
  • Section 8(b)(v)(3) has been completely revised.  A Notice of Substitution of the Successor Creditor is to be used rather than the filing of a motion and order. This Notice of Substitution is new Form 10.  Removing the motion and order requirement deletes old Form 11.  
  • A hearing will be scheduled upon the filing of a Certificate of Non-Compliance with the Court.
  • In Section 9, it has been clarified that the initial duration of the LMM Period shall be 180 days from entry of the Order for Loan Modification Management.
  • In Section 9, Section 9(a)(iv) has been added-- Termination of LMM Due to Dismissal of Case—as well as a new Form 6a.  Form 6a is to be filed if an LMM is pending when a case is dismissed. It may be filed by any party.
  • A copy of the Trial Loan Modification Agreement must accompany any motion to approve said agreement.  Moreover, the motion must be served on the Required Parties.
  • The provisions with respect to any proposed final Loan Modification Order and what it must contain have been deleted.

 

Form 1a:

Form 1a now provides for the listing of additional liens.

 

Form 1b:

Form 1b has been modified to cover cases where the plan contains the LMM provision and cases where it does not.  The form also provides for the listing of additional liens.

 

Form 4a:

Form 4a now refers to the duration of the LMM Period and what happens if the order expires.

 

Form 4b:

Form 4b provides for plan modification if the plan did not include the LMM language and also refers to the duration of the LMM Period and what happens if the order expires.

 

Form 6a:

New form—Notice of Termination of LMM Program Due to Dismissal of Case.

 

Form 7:

Form 7 no longer includes the language about filing a motion to modify the plan.

 

Form 10:

New form—Notice of Substitution of CR.

 

Form 11:

Renumbered form—Motion to Approve Trial Loan Modification Agreement.  Now indicates that a copy of the Trial Loan Modification Agreement is to be attached.

 

Form 12:

Renumbered form—Order Approving Trial Loan Modification Agreement.

 

Form 13:

Renumbered form—Motion to Approve Final Loan Modification Agreement.

 

Form 14:

Renumbered form—Final Loan Modification Summary.

 

Form 15:

Renumbered form—Order Approving Final Loan Modification Agreement.

 

 

**The directive language concerning service of the orders also now appears in the body of the orders.**

 

 

Please read and familiarize yourself with these new procedures and forms.