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 California Qualified Written Request (BWR) under Section 6 of the Real Estate Settlement Procedures Act (RESP) is a formal written request made by a borrower to their mortgage service asking for information or addressing concerns regarding their loan. It is a vital tool that helps borrowers ensure their mortgage services comply with RESP regulations and provides transparency in the loan servicing process. Here is a detailed description of what a California BWR under Section 6 of RESP entails, along with some common types: 1. Purpose and Importance: A California BWR under Section 6 of RESP allows borrowers to obtain information about their mortgage loan, request corrections to any errors, or seek clarification on certain loan-related matters. This written request serves as a means for borrowers to communicate directly with their mortgage service, bringing attention to any discrepancies, unwanted fees, or misconduct in the servicing process. By submitting a BWR, borrowers can protect their rights, ensure compliance with RESP, and potentially resolve any issues amicably. 2. Key Contents of a BWR: When drafting a California BWR under Section 6 of RESP, it is crucial to include the following details: a. Borrower Information: Provide your full name, address, and loan account number to help the mortgage service identify your loan. b. Description of Request: Clearly state the purpose of your request. Whether it is an inquiry about the loan balance, interest rate adjustments, escrow account discrepancies, or any other relevant concern, be specific in defining your request. c. Supporting Documents: If applicable, attach any supporting documents that substantiate your claim, such as account statements, loan documents, or correspondence with the service. This will strengthen your case and assist the mortgage service in understanding and addressing your concerns promptly. d. Contact Information: Include your preferred method of contact, such as phone number, email address, or mailing address, so that the service can respond appropriately. 3. Different Types of California Was: While Was primarily aim to address various loan-related issues, they may vary depending on the borrower's specific concerns. Some common types of California Was under Section 6 of RESP are: a. Loan Information Request: Borrowers can request detailed information about their loan, including payment history, interest rates, escrow balances, or any other specific loan terms they need clarification on. b. Error Correction Request: If borrowers identify errors or discrepancies in their loan statements, including unauthorized fees, misapplied payments, or incorrect escrow calculations, they can submit a BWR to request immediate corrections. c. Servicing Transfer Disputes: When loans are transferred to different mortgage services, borrowers may experience issues with the transfer process, resulting in payment allocation or duplicate fees. A BWR can be used to rectify such problems and seek resolution. d. General Complaints or Disputes: Borrowers may have concerns or complaints regarding the overall loan servicing process, customer service, or unresponsiveness from the mortgage service. A BWR serves as a formal channel to address these disputes and seek resolution. Overall, a California Qualified Written Request under Section 6 of RESP empowers borrowers to assert their rights and seek resolution for loan-related issues. It is essential to follow the guidelines provided by RESP and submit a complete and well-documented request to maximize the chances of a satisfactory outcome.
