RESPA - Qualified Written Request

By
Real Estate Services with Fransen and Molinaro
http://actvra.in/bQ5

Occassionally i get a client that comes to me and says they want to do a "RESPA request" or a "QWR" (Qualified Written Request).  What they are referring to is a requirement under the Real Estate Settlement Procedures Act (RESPA) that requires lenders to reply to a written request for information or statement of dispute from a borrower.  The lender must acknowledge receipt of the letter within 20 days and respond within 60 days.  An example would be a life of loan accounting.  The lender would then have 60 days from receipt to provide this.  Another example would be a dispute regarding a service fee.  This would have to be investigated and addressed within the 60 day period.

Now, if the lender does not do this, there is some civil liability.  If found liable, the lender must pay actual damages (probably minimal or non-existent in most cases), attorneys fees, and possible $1,000 (if it can be shown that there is a pattern and practice of the violation). 

Here are things a QWR does not do:
- stop a foreclosure
- stop negative credit reporting (unless there is a dispute as to a credit reporting issue)
- stop the collection of payments
- guarantee a loan modification

Overall, RESPA is a useful consumer law that is violated by lenders/servicers on occassion.  It is a good way to obtain information as well that may form the basis of a later civil action.  In order to make a QWR you simply have to identify the loan and borrower in a letter sent to the servicer along with a request for information or dispute.  As with many laws, its always best to seek legal counsel.

 

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Rainer
9,118
Nathan Fransen
Fransen and Molinaro

kl,

Be careful with this line of thinking.  There is a great deal of misinformation out there.  A consult with a local attorney might be helpful.

Good luck,

 

January 13, 2010 01:37 AM
Anonymous #10
Anonymous
Jared

If a modification is requested by a customer, is it a requirement of the lender to provide any type of RESPA information in addition to acknowledging we are in receipt of their request for assistance or it his only required if the customer specifically requests information or disputes the debt.

July 27, 2010 06:37 PM
Anonymous #11
Anonymous
andy

I sent a QWR to my lender. It's been more than 20 days and I've had no answer. Does that give me any leverage? Can I do something about it?

March 01, 2011 09:26 PM
Anonymous #12
Anonymous
Mary

If a lender does not answer a QWR and does not present the mortgage documents, how can he foreclose without proof that he represent the true owners of the title?

March 02, 2011 12:45 AM
Anonymous #13
Anonymous
Norman

So if I understand correctly, the QWR is just to buy time (in a sence) because if ther are no violations or errors, then the lender will proceed as planned? This is more or less the hope they made a mistake? It seems that if I (as a real estate agent) try to find these errors and inform my buyer there might be an error, i might be practicing law (that is a no no) on the other hand even if I tell them to seek the advice of a real estate lawyer, how will that help or hinder my short sale negotiations? It seemd that might delay the process. Please help me understand better. Thank you

July 30, 2011 02:39 AM
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Rainer
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Nathan Fransen

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