12 USC 2605(e) creates a duty of a loan servicer to respond to the inquiries of borrowers regarding loans covered by RESPA. If the borrower believes there is an error in the mortgage account, he or she can make a "qualified written request" to the loan servicer. The request must be in writing, identify the borrower by name and account, and include a statement of reasons why the borrower believes the account is in error. The request should include the words "qualified written request". It cannot be written on the payment coupon, but must be on a separate piece of paper. The Department of Housing and Urban Development provides a sample letter.
The servicer must acknowledge receipt of the request within 20 days. The servicer then has 60 days (from the request) to take action on the request. The servicer has to either provide a written notification that the error has been corrected, or provide a written explanation as to why the servicer believes the account is correct. Either way, the servicer has to provide the name and telephone number of a person with whom the borrower can discuss the matter.
A Detailed Description of Alabama Qualified Written Request (BWR) under Section 6 of the Real Estate Settlement Procedures Act (RESP) Under Section 6 of the Real Estate Settlement Procedures Act (RESP), borrowers in Alabama have the right to submit a Qualified Written Request (BWR) to their loan services. A BWR is a written request from the borrower to the loan service seeking information or resolving issues related to their mortgage loan. The Alabama Qualified Written Request under Section 6 of RESP serves as an essential tool for borrowers to exercise their rights and gain clarity regarding their mortgage loan terms, payments, and potential errors. By submitting a BWR, borrowers can ensure that loan services respond and provide the requested information accurately and promptly. Through the Alabama BWR, borrowers can address various concerns, such as discrepancies in loan payment amounts, issues with escrow accounts, unresolved insurance claims, incorrect application of payments, unclear loan modification terms, or other potential violations of RESP regulations by the loan service. Submitting a properly formatted Alabama BWR requires certain key elements. The request must be in writing and include the borrower's name, loan number, and property address. It should clearly state the required information or resolution sought and provide supporting documents or evidence if applicable. The BWR should also specify a reasonable timeframe for the loan service to provide a response. Different Types of Alabama Qualified Written Requests under Section 6 of RESP may include: 1. Alabama BWR for Loan Information: Borrowers can request detailed information about their mortgage loan, such as loan origination documents, payment history, escrow account details, interest rates, and any changes made to loan terms. 2. Alabama BWR for Error Correction: If borrowers believe there are errors or discrepancies in their loan statements or payments, they can submit a BWR asking the loan service to correct the mistakes and provide an explanation. 3. Alabama BWR for Loan Modification: Borrowers seeking clarification on loan modification terms or wanting to explore available options can submit a BWR to understand the terms, requirements, and potential effects on their mortgage. 4. Alabama BWR for Escrow Account: This type of BWR concerns issues related to the borrower's escrow account. Borrowers can request an explanation of how funds are allocated, annual escrow account statements, or updates on any changes made to the escrow payment amounts. It is essential to keep copies of all correspondence and documents when submitting an Alabama BWR, as this can serve as evidence if further action or resolution is required. Mortgage loan services must respond within a reasonable timeframe, usually about 30 days, but exact timelines may vary depending on individual circumstances. In summary, an Alabama Qualified Written Request under Section 6 of RESP grants borrowers the ability to seek information, resolve disputes, and ensure compliance by loan services. By utilizing this tool effectively, borrowers can protect their rights and gain clarity on their mortgage loan terms and payments.
