California Civil Code §2923.7, which is part of the set of laws commonly referred to as the Homeowner Bill of Rights (“HBOR”), requires that a loan servicer assign a Single Point of Contact (“SPOC”) to a borrower. While this may seem clear in the abstract, actually applying this requirement in the real world is a more complex undertaking. The responsibilities of the SPOC under HBOR are to:
Courts have sought to interpret the SPOC requirement to give effect to the statutory language while also recognizing the realities that employees often change jobs and no one is available 24/7. Accordingly, a SPOC has been defined as “an individual or team of personnel” provided that each member of the team must be “knowledgeable about the borrower’s situation and current status in the alternatives to the foreclosure process.”
The question of whether a servicer has complied with the SPOC in a particular case involves a fact intensive inquiry. If the servicer failed to comply with the SPOC requirement, that failure can form the basis for pursuing a remedy for the borrower.