Dissatisfied Borrower leads to RESPA Litigation

Jonathan Foxx, Ph.D., MBA
Contact

A new client of ours did a thorough investigation of a Qualified Written Request (QWR) but, unfortunately, the borrower was not satisfied with the conclusions. Our client contacted me because of concerns arising out of the Notice of Error (NOE) and Request for Information (RFI) process. After reviewing their response and decision tree, we suggested revisions to their policies and procedures.

The importance of complying with RESPA’s NOE and RFI procedures is fundamental to RESPA compliance. It is not a simple matter of having a dissatisfied borrower on your hands, although that is bad enough. The larger problem is that the borrower may commence litigation, which almost certainly will include a RESPA claim for violations of these procedures. If they don’t already have a claim when they start looking for causes of action, they may test the waters by sending an NOE and/or RFI.

This is a situation of significant exposure to the financial institution. In point of fact, by my count more than 1,100 court decisions filed since August 1, 2013 have involved alleged QWR, NOE, or RFI violations.

Here’s just one of the cases among the hundreds upon hundreds of such actions.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Jonathan Foxx, Ph.D., MBA
Contact
more
less

Lenders Compliance Group on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.