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.