“A servicer shall not make the first notice of filing required by applicable law for any judicial or non-judicial foreclosure unless: (iii) The servicer is joining the foreclosure action of a subordinate lienholder.”
The guidance in 1024.41(f)(1)iii is very precise. It does not mention a subordinate lienholder joining the first lienholder in an action. It does not address a matured HELOC.
We can speculate on the answers to these vary valid questions, but unfortunately the only answers that count come from the CFPB or the courts.