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.
An Iowa Qualified Written Request (BWR) under Section 6 of the Real Estate Settlement Procedures Act (RESP) is a specific legal document that allows borrowers in Iowa to formally request information from their mortgage services. This request is made to obtain details regarding the servicing of their mortgage loans, such as payment history, account statements, and other relevant documents. The Iowa BWR is a crucial tool that aims to protect the rights of borrowers and ensure that mortgage services are compliant with RESP regulations. These requests enable borrowers to obtain accurate and transparent information about their loans and address any potential issues or discrepancies. Types of Iowa Qualified Written Request under Section 6 of RESP: 1. General Iowa BWR: This type of request is used by borrowers to seek information and clarification regarding the terms and conditions of their mortgage loans. 2. Dispute Resolution Iowa BWR: In case the borrower has identified errors, inconsistencies, or fraudulent activities related to their loan servicing, this type of request can be utilized to initiate a dispute resolution process. 3. Loss Mitigation Iowa BWR: If a borrower is facing financial hardship and wishes to explore options for loan modification or foreclosure alternatives, they can submit a loss mitigation BWR to their mortgage service. 4. Escrow Account Iowa BWR: Borrowers can use this type of request to obtain detailed information regarding the handling and disbursement of funds in their escrow accounts. 5. Loan Payoff Iowa BWR: This request allows borrowers to request the exact payoff amount for their mortgage loan, including any outstanding fees, interest, or penalties. Submitting an Iowa BWR involves providing specific details regarding the mortgage loan, the borrower's contact information, and a clear outline of the information or issue being requested. It is advisable to send the request via certified mail with a return receipt to ensure proper documentation and record-keeping. Overall, the Iowa BWR under Section 6 of RESP empowers borrowers by giving them the right to obtain accurate and complete information about their mortgage loans, fostering transparency and accountability within the lending industry.
