Fighting Against Various Mortgage Servicing Issues
If you're not getting answers from your mortgage servicer when you call, send questions or a demand for corrective action via certified mail with return receipt requested to it. Make sure to keep a copy.
The Cranston-Gonzales Amendment is a remedial consumer protection statute. Under it, a mortgage servicer is required to provide a written acknowledgment letter within 20 business days of receiving a qualified written request for information about the servicing of a loan.
A "qualified written request" is a written correspondence that enables the mortgage servicer to identify the name and account of the borrower and contains a statement of the reasons for the borrower's belief that the account is in error, or provides sufficient detail to Mortgage Servicer regarding other information sought by the borrower.
This letter must be sent to the address the bank has identified as the location to send inquiries, which usually can be found on your monthly statement. This letter SHOULD NOT be included with your mortgage payment, but should be sent separately. A sample letter can be found at HUD's web site.
Servicer Must Take Corrective Action If Requested and Warranted
RESPA also requires Mortgage Servicer to take corrective action within 60 business days of receiving the request, or to conduct an investigation and provide the borrower with a written explanation of the reasons for the action and the name and telephone number of an employee of the servicer to whom the borrower can direct any further inquiry on the matter.
Freeze On Reporting Delinquent to a Credit Reporting Agency If You Dispute Amount
In addition to the previous requirements, RESPA also prohibits Mortgage Servicer from reporting the account as delinquent to a credit reporting agency within the 60 business day period it responds to a borrower's qualified written request.
Entitled to Damages and Attorney Fees
The Cranston-Gonzales Amendment provides for damages for a lender's violation of an individual's rights and pays your attorney fees. The borrower is entitled to the amount of any actual damages as a result of each such violation.
Actual damages in cases brought under this law routinely include emotional damages, which include damages for constant worry and distress over the impending loss of the home, and loss of time and inconvenience.
In addition to actual damages, Plaintiffs may recover additional damages in the case of a pattern or practice of noncompliance with the requirements of the Cranston-Gonzales Amendment, in an amount not to exceed $ 1,000 for each such failure.
Contact Our Firm Today
To schedule a free consultation with one of our Chicago area consumer protection lawyers, please call 312-265-3258 or send us an e-mail now. We handle a majority of our cases on a contingency basis.