Mortgage Servicing RESPA Applies to RESPA-defined Must acknowledge, within 5 days of RESPA liability for servicing errors is Work on process for sending written notice – related mortgage receipt, borrower’s notice of servicing actual damages, plus any additional to borrowers of address notices of Error Resolution Procedures, “federally Requests for Information, loans” except not HELOCs error and must investigate, if damages the court allows not to exceed error and information requests must be sent Forced-Placed Hazard Insurance necessary, correct error, and respond $2,000, plus costs and attorney fees for any Get help immediately to begin establishing within 30 days of receipt (or sooner in successful action 78 Fed. Reg. 10696 (2/14/13) processing and procedures to comply with some circumstances) Effective Date: January 10, 2014 servicing requirements Must acknowledge, within 5 days of receipt, borrower’s information request and must provide requested information and contact information or investigate and advise no requested information is available within 30 days of receipt (or sooner for “identification information”) Must provide specific notices before force-placing hazard insurance Loan secured by consumer’s Must send accurate payoff statement Standard TILA liability Get help immediately to begin establishing Mortgage Servicing TILA – Payoff Statements dwelling not more than 7 business days after processing and procedures to comply with State A.G. may bring action under a 3year receiving written request from servicing requirements 78 Fed. Reg. 10902 (2/14/13) Note: Applies to HELOCs state of limitations borrower or person acting on behalf of Effective Date: January 10, 2014 borrower Mortgage Servicing TILA Loan secured by consumer’s Imposes restrictions and obligations Standard TILA liability Review systems to ensure payment – Crediting Payments and Late principal dwelling regarding application of payments processing and crediting requirements can State A.G. may bring action under a 3year Fee Provisions be met Note: Applies to HELOCs Prohibits pyramiding late fees state of limitations 78 Fed. Reg. 10902 (2/14/13) Effective Date: January 10, 2014
Mortgage Servicing – RESPA Error Resolution Procedures, Requests for Information, Forced-Placed Hazard Insurance 78 Fed. Reg. 10696 (2/14/13) Effective Date: January 10, 2014 Applies to RESPA-defined “federally related mortgage loans” except not HELOCs Must acknowledge, within 5 days of receipt, borrower’s notice of servicing error and must investigate, if necessary, correct error, and respond within 30 days of receipt (or sooner in some circumstances) Must acknowledge, within 5 days of receipt, borrower’s information request and must provide requested information and contact information or investigate and advise no requested information is available within 30 days of receipt (or sooner for “identification information”) Must provide specific notices before force-placing hazard insurance RESPA liability for servicing errors is actual damages, plus any additional damages the court allows not to exceed $2,000, plus costs and attorney fees for any successful action Work on process for sending written notice to borrowers of address notices of error and information requests must be sent Get help immediately to begin establishing processing and procedures to comply with servicing requirements Mortgage Servicing – TILA Payoff Statements 78 Fed. Reg. 10902 (2/14/13) Effective Date: January 10, 2014 Loan secured by consumer’s dwelling Note: Applies to HELOCs Must send accurate payoff statement not more than 7 business days after receiving written request from borrower or person acting on behalf of borrower Standard TILA liability State A.G. may bring action under a 3year state of limitations Get help immediately to begin establishing processing and procedures to comply with servicing requirements Mortgage Servicing – TILA Crediting Payments and Late Fee Provisions 78 Fed. Reg. 10902 (2/14/13) Effective Date: January 10, 2014 Loan secured by consumer’s principal dwelling Note: Applies to HELOCs Imposes restrictions and obligations regarding application of payments Prohibits pyramiding late fees Standard TILA liability State A.G. may bring action under a 3year state of limitations Review systems to ensure payment processing and crediting requirements can be met