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 Delaware Qualified Written Request (BWR) is a formal request made by a borrower or homeowner to a mortgage loan service or lender under Section 6 of the Real Estate Settlement Procedures Act (RESP). The BWR is designed to protect borrowers and homeowners by providing a way to seek information, clarification, or resolution regarding their mortgage loan. Under Section 6 of RESP, a Delaware BWR must be in writing and include specific details such as the borrower's name, loan account number, and a clear explanation of the issue or question being raised. The BWR should also provide supporting documentation, if applicable, to help the borrower's case. A Delaware BWR can address different types of issues related to mortgage loans and servicing practices. Some commonly encountered situations where borrowers may file a BWR include: 1. Loan Modification: Borrowers seeking a modification of their mortgage terms, interest rates, or payment plans may submit a BWR to request information about the process, eligibility criteria, or to dispute a denial or delay in the decision-making process. 2. Escrow Account: Homeowners concerned about their escrow account funds, including overages, shortages, or the handling of insurance and tax payments, can submit a BWR to request a detailed breakdown of the account's activity and any necessary adjustments. 3. Payment Discrepancies: Borrowers who believe there are errors or discrepancies in their loan payments, including misapplied funds or miscalculations, can use a BWR to request an investigation and clarification from their loan service. 4. Force-placed Insurance: If a borrower has concerns about force-placed insurance that has been added to their loan or disputes the necessity or cost of such insurance, they can submit a BWR to seek an explanation, proof of coverage, or to challenge the added expenses. 5. Servicing Errors: Homeowners who have identified mistakes, inaccuracies, or unfair practices in the loan servicing process, such as mishandling of payments, improper application of fees, or communication issues, can utilize a BWR to request an investigation and resolution. It is important to note that a Delaware BWR must be sent to the designated address provided by the loan service or lender for BWR submissions. Under RESP, the recipient is required to acknowledge the receipt of the BWR within five business days and provide a written response or action plan within 30 business days, subject to certain exceptions. By filing a Delaware BWR under Section 6 of RESP, borrowers and homeowners can exercise their rights, obtain crucial information, and potentially resolve mortgage-related disputes or concerns in a structured and legal manner.
