The new mortgage servicing rules go into effect on Jan. 10. The previous regulations required servicers to respond to borrowers’ qualified written requests (QWRs). The QWR requirements were specific, and the servicer was not required under RESPA’s provisions to respond a borrower’s inquiry if the communication was not in the correct QWR format.
The Consumer Financial Protection Bureau’s (CFPB) mortgage servicing final rule significantly changes when servicers are required to respond to borrowers’ requests. Now, servicers must respond to borrowers’ requests for information and notifications of error.
The borrowers’ requests must be in writing, and the CFPB is helping consumers get the language correct. The bureau announced on Jan. 7 that it now provides on its website sample letters that consumers can send to their mortgage servicers.
The information included in the sample letter consumers can use to request that a servicer correct errors suggests that borrowers try calling their servicer to fix account errors. The other option is to write a letter identifying the borrower and the possible error.
Servicers are required to acknowledge the letter within five days of receipt. If the error is an improperly started foreclosure, the servicer must send a full response before the foreclosure sale or within 30 business days, whichever is sooner. If the error is due to an inaccurate payoff balance, the servicer must respond within seven business days. For all other errors, the servicer must respond within 30 business days.
In the information request sample letter, the bureau provides examples of requests and explains that a servicer is not required to investigate a request if it is overly broad. For information requests, the servicer must acknowledge the letter within five business days. Generally, within 30 business days a full response must be sent. However, if the request asks for the identity and address of the owner of the loan, the servicer must respond within 10 business days.
Both sample letters explain that if the borrower is unsatisfied with the results, he or she can send a complaint to the CFPB.
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