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.
Illinois Qualified Written Request (BWR) under Section 6 of the Real Estate Settlement Procedures Act (RESP) is a legal tool that allows consumers to request information and resolve issues related to their mortgage loans. This provision grants homeowners certain rights and protections in their interactions with mortgage services and lenders. By filing a BWR, borrowers can seek clarification, dispute errors, and resolve potential violations of RESP. Under the Illinois BWR framework, there are several types of requests that can be made: 1. Initial BWR: This is the first written communication a borrower sends to the mortgage service or lender regarding a specific issue related to their mortgage loan. It should include the borrower's name, loan number, and a clear explanation of the problem or concern. 2. Follow-Up BWR: If the initial BWR fails to resolve the issue or the response received from the service is inadequate, a follow-up BWR can be submitted. This type of request restates the issue, highlights the unsatisfactory response, and requests a more thorough explanation or resolution. 3. Escrow Account BWR: If the borrower believes there are errors or irregularities in the escrow account handling, such as misapplied payments, discrepancies in tax or insurance disbursements, or suspected overcharges, they can file an Escrow Account BWR specifically addressing these concerns. 4. Loss Mitigation BWR: When a borrower is facing financial hardships and seeks foreclosure alternatives or loan modifications, a Loss Mitigation BWR can be filed. This request seeks comprehensive information on available loss mitigation options and the reasoning behind any denial of assistance. 5. Loan Ownership BWR: If there is uncertainty regarding the current owner of the mortgage loan or the existence of proper documentation establishing the mortgage holder's rights, a Loan Ownership BWR can be filed to clarify and verify the loan ownership. In all cases, the Illinois BWR must meet the requirements of Section 6 of RESP, including being in writing, clearly identifying the borrower's name and account information, and clearly stating the nature of the request or dispute. It is important to send the BWR via certified mail with a return receipt requested to ensure proper delivery and document the timeline of the request. The Illinois BWR process provides borrowers with a means to communicate their concerns to mortgage services and lenders while demanding transparency, accuracy, and resolution in accordance with RESP regulations.Illinois Qualified Written Request (BWR) under Section 6 of the Real Estate Settlement Procedures Act (RESP) is a legal tool that allows consumers to request information and resolve issues related to their mortgage loans. This provision grants homeowners certain rights and protections in their interactions with mortgage services and lenders. By filing a BWR, borrowers can seek clarification, dispute errors, and resolve potential violations of RESP. Under the Illinois BWR framework, there are several types of requests that can be made: 1. Initial BWR: This is the first written communication a borrower sends to the mortgage service or lender regarding a specific issue related to their mortgage loan. It should include the borrower's name, loan number, and a clear explanation of the problem or concern. 2. Follow-Up BWR: If the initial BWR fails to resolve the issue or the response received from the service is inadequate, a follow-up BWR can be submitted. This type of request restates the issue, highlights the unsatisfactory response, and requests a more thorough explanation or resolution. 3. Escrow Account BWR: If the borrower believes there are errors or irregularities in the escrow account handling, such as misapplied payments, discrepancies in tax or insurance disbursements, or suspected overcharges, they can file an Escrow Account BWR specifically addressing these concerns. 4. Loss Mitigation BWR: When a borrower is facing financial hardships and seeks foreclosure alternatives or loan modifications, a Loss Mitigation BWR can be filed. This request seeks comprehensive information on available loss mitigation options and the reasoning behind any denial of assistance. 5. Loan Ownership BWR: If there is uncertainty regarding the current owner of the mortgage loan or the existence of proper documentation establishing the mortgage holder's rights, a Loan Ownership BWR can be filed to clarify and verify the loan ownership. In all cases, the Illinois BWR must meet the requirements of Section 6 of RESP, including being in writing, clearly identifying the borrower's name and account information, and clearly stating the nature of the request or dispute. It is important to send the BWR via certified mail with a return receipt requested to ensure proper delivery and document the timeline of the request. The Illinois BWR process provides borrowers with a means to communicate their concerns to mortgage services and lenders while demanding transparency, accuracy, and resolution in accordance with RESP regulations.
