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 Puerto Rico Qualified Written Request (BWR) under Section 6 of the Real Estate Settlement Procedures Act (RESP) is a legal tool that allows borrowers in Puerto Rico to request information and resolve issues related to their mortgage loan servicing. This provision falls under the broader BWR framework established by RESP, which aims to protect consumers from unscrupulous practices and ensure transparency in the mortgage industry. When a borrower in Puerto Rico encounters problems with their mortgage loan service, such as incorrect or unanswered billing statements, escrow account discrepancies, or other issues affecting their loan, they can file a Puerto Rico BWR. This enables them to formally request information, documentation, or clarification regarding their loan servicing. The Puerto Rico BWR is named specifically to distinguish it as applicable within the territory of Puerto Rico. It follows the guidelines set forth in Section 6 of RESP, which outlines the borrower's rights to request information from the loan service and the service's responsibilities to provide accurate and timely responses. Types of Puerto Rico Was under Section 6 may vary depending on the specific issue a borrower faces. Some common examples include: 1. Billing Statement Discrepancy BWR: This type of BWR is used when a borrower notices discrepancies or errors on their billing statements, such as incorrect payment amounts, misapplied funds, or unauthorized fees. The borrower requests a detailed explanation and supporting documents from the loan service to rectify the issue. 2. Escrow Account BWR: If a borrower in Puerto Rico suspects errors or mismanagement of their escrow account, such as miscalculated tax or insurance payments, they can file an Escrow Account BWR. This type of BWR seeks clarification and documentation related to the escrow account's activity to determine whether any corrections are required. 3. Loan Modification or Loss Mitigation BWR: When a borrower in Puerto Rico applies for a loan modification or loss mitigation option, such as a repayment plan or forbearance, but encounters obstacles or inconsistent communication with the service, they may submit a BWR to seek clarification on the status of their application and any relevant documentation required for review. 4. Insurance and Property Preservation BWR: If a borrower in Puerto Rico faces difficulties related to forced-placed insurance or disputes over property preservation services, they can use this type of BWR to request documentation, explanations, or corrections from the service. 5. General Loan Information Request BWR: Borrowers in Puerto Rico can file a general BWR to obtain any relevant information and documentation pertaining to their mortgage loan, including but not limited to payment history, account statements, transaction records, or any other information required for understanding their loan terms and servicing. It is important to note that each BWR submitted in Puerto Rico under Section 6 of RESP should be sent in writing to the loan service, clearly identifying it as a BWR, and outlining the specific issues or requests that need to be addressed. The service is typically required to acknowledge the receipt of the BWR within a specified timeframe and provide a substantive response within a reasonable period, according to RESP guidelines.
