RESPA - Qualified Written Request

By
Services for Real Estate Pros 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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Rainmaker
114,930
Susan Hilton
CENTURY 21 Beal, Inc. - College Station, TX
Texas Aggie Real Estate, College Station Bryan Texas Real Estate

I've been doing real estate forever and didn't know this. Thank you!

May 27, 2008 09:52 PM #1
Anonymous
Anonymous
Philip

what about a fee the borrower got charged for a modification they did not get?

Jul 06, 2008 04:20 AM #2
Anonymous
Anonymous
Rupa

if there more than one lender, then is it necessary to send a QWR to each one of them?

Dec 01, 2008 06:20 AM #3
Rainer
9,122
Nathan Fransen
Fransen and Molinaro - Corona, CA

Philip - it depends on who charged the fee.  if it was the lender than there may be implications from RESPA and TILA.  If it was a 3rd party than it would not likely be covered by either of those laws, but perhaps other state statutes.

Rupa - Yes - a QWR is only effective as to the lender that it is sent to.  You would need to send one to each lender if you are requesting information from each of them.

Best of luck,

Nathan Fransen
www.loanlaw.net

 

Dec 01, 2008 09:41 AM #4
Rainer
24,609
Marie Ogle
Mortgage Processing Solutions - Spokane, WA
Contract Mortgage Processor

Good to know.  I've been trying to brush up on my respa knowledge and this is definitely helpful.

Respa

Thanks

 

Jan 27, 2009 05:28 PM #5
Anonymous
Anonymous
Anonymous

humm, i think your clients should read the frist line of thier note... did they really recieve a loan BEFORE they signed thier documents?

May 12, 2009 10:18 AM #6
Rainmaker
301,553
John Occhi
Mason Real Estate - Temecula, CA
SRES,CPRES.ePRO - Temecula-Murrieta CA Real Estate

Thank you for this post.  I have just written my own on the new RESPA rules and even went ahead and created a group, just for RESPA posts, like this one.

Would you please consider joining this new group and adding this post to the group.

Thank you in advance,

John

Jan 02, 2010 02:44 PM #7
Anonymous
Anonymous
kl

they did not loan you anything. they can't even prove they have the original note. my foreclosure is in march. they are asking the court to allow a copy??????? Law requires the original servicer to show the borrower the  wet ink original note.

Jan 10, 2010 08:01 AM #8
Rainer
9,122
Nathan Fransen
Fransen and Molinaro - Corona, CA

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,

 

Jan 13, 2010 01:37 AM #9
Anonymous
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.

Jul 27, 2010 06:37 PM #10
Anonymous
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?

Mar 01, 2011 09:26 PM #11
Anonymous
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?

Mar 02, 2011 12:45 AM #12
Anonymous
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

Jul 30, 2011 02:39 AM #13
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Rainer
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