Mortgage holders and servicers should prepare for important changes to Federal Bankruptcy Rules of Procedure ("FRBP"), effective December 1, 2011, including requirements for new forms. The changes to FRBP 3001, the procedural rule for filing proofs of claim, and the introduction of new FRBP 3002.1 requiring notices relating to claims secured by a mortgage on a debtor’s principal residence, impose new obligations on mortgage holders, servicers and their attorneys for borrowers who are individual debtors in current and new bankruptcy cases. Failure to abide by these new requirements can result in serious consequences, including sanctions.

This article will describe the changes to the proof of claim forms; the escrow statement requirement; a new requirement for the filing of a payment change notice 21 days prior to any change in the debtor’s postpetition payments in Chapter 13 cases (this requirement may wreak havoc for home equity line of credit ("HELOC") servicers); and a required notice of any postpetition fees, expenses and charges (some examples are legal fees, appraisal fees and inspection fees) that must be filed within 180 days after the charge is incurred. Even more onerous is the new notice of final cure which the creditor must respond to within 21 days after it is filed.