Dispute Mortgage Servicing Errors

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Your mortgage loan is managed by a “mortgage servicer.” This company takes payments, manages escrow accounts, and handles loan modifications. Mortgage servicers sometimes make errors, either by failing to credit payments, charging improper fees, failing to pay taxes, or commencing foreclosures without authority. 

Fortunately, the Real Estate Settlement Procedures Act (RESPA) allows you to dispute mortgage servicing errors and get them corrected. Read this page to learn about your mortgage error dispute rights. If you need help, or if you believe your rights were violated, contact BCJ Law for help. To speak with our credit report attorney, call 1-800-997-5561 or complete our contact form.

What rights do I have under the Real Estate Settlement Procedures Act?

RESPA gives consumers the right to notify mortgage servicers of mortgage errors. Once proper notice is received, servicers must conduct an investigation and correct any errors they find. Here’s a partial list of errors you can dispute:

  • Payment Errors: you can dispute a servicer's failure to accept, apply, credit, or receive mortgage payments.
  • Insurance and Tax Errors: you can dispute a servicer's failure to pay insurance or taxes, or a servicer's purchase of insurance on your account without reasonable basis.
  • Unauthorized Fees: you can dispute the imposition of fees or charges if you believe they are unauthorized, unwarranted, or unlawful.
  • Loss Mitigation Errors: you challenge a servicer's failure to follow the proper loss mitigation or loan modification procedures, as well as a servicer's provision of inaccurate information concerning the availability of, applications concerning, or deadlines regarding loss mitigation and loan modification.
  • Transfer Errors: you can dispute errors that occur as a result of the improper, inaccurate, or otherwise defective transfer or "boarding" of your mortgage from one mortgage servicer to another.

In addition to giving you valuable dispute rights, RESPA also allows consumers to request information about their mortgage from their mortgage servicer.

How do I dispute mistakes made by my mortgage company?

You can dispute mortgage errors by sending a notice of error in writing to the proper address designated by your mortgage servicer. Use these three steps to ensure that your dispute is investigated properly.

I. Write your notice of error letter:

Error notices should include your name, address, and mortgage account number. Next, you should identify the error you believe your mortgage company made. If possible, provide supporting documents and information to prove your mortgage company made a mistake. 

Be sure to compose all error notices on separate pieces of paper. Don’t write them on bills, coupons, or other payment forms. If you need help writing your dispute, the Consumer Financial Protection Bureau (CFPB) provides sample letters for disputing mortgage errors.

Send your notice of error to the correct address. Mortgage companies sometimes designate an address to receive error notices. If you don’t send your notice to the designated address, your servicer may not respond. Designated error notice addresses usually can be found on a mortgage servicer’s website, on monthly mortgage statements, or on a mortgage servicer’s loss mitigation or loan modification notices.

III. Send your notice certified mail with a return receipt:

Send error notices by certified mail and request a return receipt. This provides proof that your notice of error was sent to and received by your mortgage company.

How do I request information on my mortgage?

Consumers sometimes request information about their mortgage in an effort to correct errors, or understand specific actions taken by a mortgage servicer. Information requests, like error notices, must be in writing, must be sent to the servicer’s designated address, should identify the specific documents and information you want, and should be sent through certified mail. The CFPB provides sample letters for requesting information from your servicer.

What are my rights after disputing a mistake made by my mortgage company?

Whether you’re disputing mortgage servicing errors, or whether you requested information about your mortgage, there are various obligations mortgage servicers must discharge under the law. Here are some of the more important rights you have:

  • Acknowledgment: acknowledgement of receipt of error notices and information requests usually is required within 5 days.
  • Prompt Responses: responses to error notices and information requests generally are required within 30 days.
  • Reasonable Investigations: if you sent an error notice, mortgage servicers must conduct reasonable investigations into any errors identified in your notice of error.
  • Written Responses: mortgage services must respond to error notices and information requests in writing. With respect to errors, servicers must state whether errors were fixed, or, if an error is not fixed, why no error exists. With regard to information requests, servicers must provide the requested information or state why it is unavailable.
  • Credit Reporting: adverse information can't be reported about payments subject to error notices.

What happens if mortgage errors aren't fixed?

If you think your mortgage servicer erred in its response to your error notice or your request for information, you can follow up with your servicer. Mortgage companies should provide contact information through which you can get further assistance. You also can request the documents and information the servicer relied on in denying your error notice or request for information.

If your mortgage company failed to respond to your requests entirely, if it failed to provide the proper notices or information, if it failed to conduct a reasonable investigation, or if it reported adverse information on your credit report while an error notice was pending, you may have a claim for damages under RESPA and other laws.

Hire BCJ Law to help!

If you’re having mortgage problems, or credit report problems, contact BCJ Law LLC for help. To speak with our credit report attorney, call 1-800-997-5561 or complete our contact form.

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