The Real Estate Settlement Procedures Act and a Qualified Written Request Letter

The Real Estate Settlement Procedures Act (RESPA) and a Qualified Written Request Letter (QWR) pursuant to RESPA are the topic of this blog post.  The relevant statutes for RESPA are found in Title 12, Chapter 27, Sections 2601 through 2617 of the United States Code.

RESPA authorizes the use of a Qualified Written Request in which a homeowner may dispute information contained in an account, request information from the servicer or lender, and have their issues answered by the company in a reasonable amount of time. Many times, servicers or lenders may not enjoy disclosing certain information to the homeowners as they may have significant problems answering the questions.

Some servicers or lenders do not keep adequate records, make material mistakes, and also engage in a practice of fraudulent servicing such as excessive or “junk” mortgage fees. In the right situations the use of a QWR can be very helpful in shedding light on these activities that can jeopardize the foreclosure case and may allow the homeowners to obtain a loan modification or other concessions from the servicer or lender.

Section 2614 of RESPA states that for a violation of Section 2605 relating to a failure to respond or to correct erroneous information outlined in a QWR, the statute of limitations is 3 years from the date of the occurrence of the violation.

The servicer or lender must acknowledge the receipt of the QWR in writing within five (5) business days from receipt unless the actions requested in the QWR are taken within that time period.

 
Although not specifically required by law, the QWR should be in the form of a letter sent by Certified Mail, Return Receipt Requested and should include the name and account number of the borrower, and should include a statement of the reasons for the belief of the borrower, to the extent applicable, that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

Within thirty (30) business days from receipt of the QWR, the servicer or lender must make any appropriate corrections in the account of the borrower, including crediting of any late charges or penalties, and transmit to the borrower a written notification of such correction which shall include the name and telephone number of a representative of the servicer who can provide assistance to the borrower as well as other specified information.

The thirty (30) business day period to respond may be extended for not more than 15 business  days if, before the end of the 30-day period, the servicer notifies the borrower of the extension and the reasons for the delay in responding.

If the servicer or lender fails to comply with any provision of RESPA they can be liable to the borrower for any actual damages to the borrower as a result of the failure, and any additional damages, as the court may allow, in the case of a pattern or practice of noncompliance with the requirements of this section, in an amount not to exceed $2,000. They may also be liable for the costs of any successful action, together with any attorneys fees incurred in connection with such action as the court determines to be reasonable under the circumstances of that particular case.

Attorneys or parties who wish to view or download a FREE sample Qualified Written Request letter created by the author can visit the link shown below:

View a FREE sample Qualified Written Request Letter

 

The author of this blog post, Stan Burman, is a freelance paralegal who has worked in California and Federal litigation since 1995.

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Copyright 2013 Stan Burman. All rights reserved.

DISCLAIMER:

Please note that the author of this blog post, Stan Burman is NOT an attorney and as such is unable to provide any specific legal advice. The author is NOT engaged in providing any legal, financial, or other professional services, and any information contained in this blog post is NOT intended to constitute legal advice.

These materials and information contained in this blog post have been prepared by Stan Burman for informational purposes only and are not legal advice. Transmission of the information contained in this blog post is not intended to create, and receipt does not constitute, any business relationship between the author and any readers. Readers should not act upon this information without seeking professional counsel.