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 Kentucky Qualified Written Request (BWR) falls under Section 6 of the Real Estate Settlement Procedures Act (RESP). It is a formal written request made by a borrower to their mortgage loan service, seeking specific information and clarification regarding the loan servicing, including any errors or discrepancies identified. Under the RESP guidelines, a Kentucky BWR provides borrowers with the opportunity to legally challenge and rectify any potential violations committed by the loan service, such as improper fees or charges, mishandling of payments, or inaccurate loan documentation. Key components of a Kentucky BWR may include: 1. Identification: The borrower's full name, address, and mortgage loan account number should be clearly stated in the BWR for proper identification. 2. Detailed Request: The BWR must specify the details of the information or issue the borrower is seeking from the loan service. This may include payment history, loan terms, transaction records, or any other relevant documents. 3. Explanation of Discrepancies: If the borrower believes there are errors or discrepancies in the loan servicing, they should explicitly describe and provide supporting evidence for each alleged mistake. 4. Legal Rights and Remedies: The BWR should highlight the borrower's rights and remedies as per RESP, such as the lender's duty to acknowledge the request within a specified timeframe and the potential penalties for non-compliance. 5. Contact Information: The borrower's contact information, including a valid mailing address and telephone number, should be included to facilitate communication between the borrower and the loan service. Types of Kentucky Was may vary based on the specific issue being addressed: 1. Payment Discrepancy Request: This type of BWR focuses on discrepancies related to monthly mortgage payments, such as applied funds, late fees, or incorrect payment allocations. 2. Escrow Account Inquiry: Borrowers with escrow accounts can submit a BWR to seek clarification regarding the management and usage of funds held in the account, including property taxes and insurance payments. 3. Loan Modification Request: In cases where a borrower wishes to explore loan modification options, they can submit a BWR to request information on available programs, eligibility criteria, and the necessary steps to initiate the modification process. 4. Foreclosure Prevention Request: If a borrower is facing foreclosure or believes their loan service committed foreclosure-related errors, a BWR can be submitted to request details about the foreclosure process, outstanding amounts, or potential alternatives to foreclosure. Regardless of the specific type, a Kentucky BWR serves as a powerful tool for borrowers to seek transparency and resolution from their loan service, ensuring compliance with RESP regulations and protecting their rights as homeowners.
