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 Virginia Qualified Written Request (BWR) is a powerful tool provided under Section 6 of the Real Estate Settlement Procedures Act (RESP) that allows borrowers to request information or seek resolution regarding their mortgage loan from their loan services or lenders. By filing a BWR, borrowers in Virginia can address grievances, seek clarification on account statements, obtain payment history, and challenge any errors or disputes related to the loan servicing. A Virginia BWR must be submitted in writing to the loan service or lender and should include specific details such as the borrower's name, account number, and a clear explanation of the issues or questions being raised. While RESP does not prescribe a specific format for a BWR, it is advisable to use certified mail and keep a copy of the request for documentation purposes. The Virginia BWR is intended to prompt timely responses from loan services or lenders and requires them to acknowledge receipt within 5 business days and provide a substantive response or action within 30 business days. The response should include relevant documents, account information, and explanations related to the borrower's concerns. If the loan service or lender fails to respond or addresses the issues inadequately, borrowers may have legal options to seek remedies or enforce their rights under RESP. While there might not be distinct types of Virginia Was under Section 6 of RESP, the specific issues covered in the requests may vary among borrowers. Some common topics or requests that could be included in a Virginia BWR are: 1. Escrow Account Inquiries: Borrowers may seek clarification or dispute any discrepancies related to their escrow account, including the handling of funds for property taxes, insurance, or other relevant expenses. 2. Loan Modification or Loss Mitigation Information: Borrowers facing financial hardship or seeking potential loan modification options may use a BWR to request information, eligibility requirements, or application status regarding foreclosure alternatives or loss mitigation programs. 3. Account Statements and Payment History: Borrowers can request detailed account statements, payment history, and breakdowns of principal, interest, fees, and escrow payments to verify accuracy and detect any errors. 4. Invalid Fees or Charges: Borrowers can challenge any fees or additional charges imposed on their loan account, such as late fees, inspection fees, or unnecessary fees that appear improper or unauthorized. 5. Transfer of Loan Servicing: If the loan is being transferred or sold to another loan service, borrowers can seek information about the new service's contact details, effective date, and any potential impact on loan terms or payments. Remember that while a Virginia BWR can be an effective means to address loan-related concerns, it is essential to thoroughly understand RESP regulations, consult legal counsel if needed, and ensure compliance with the specific requirements outlined in Section 6.
