Error Notices and Information Requests

Error Notices and Information Requests

New Mortgage Servicing Rules issued by the Consumer Financial Protections Bureau and Regulation X (the implementing regulation of the Real Estate Settlement Procedures Act), effective January 10, 2015. These rules require all servicers meet certain procedural requirements for responding to written information requests or complaint errors. For purposes of the timing requirements associated with these rules, "days" exclude legal public holidays, Saturdays and Sundays.

Servicers are generally required to:
  • Acknowledge the information request or notice of error within five days.
  • Do the following within the time frames established under the rule:
    • For errors, correct the error and provide the borrower written notification of the correction or conduct an investigation and provide the borrower written notification that no error occurred.
    • For payoff statement errors, the servicer must correct the error and notify the borrower within 7 days.
    • For errors related to foreclosure sale, order of sale or first notice:  If received more then 7 days prior to the foreclosure sale, investigation, resolution and notification to the borrower must be completed prior to foreclosure sale or within 30 days, whichever is earlier.  If received less that 7 days prior to the foreclosure sale, the servicer must make a good faith efforts to resolve the issues.
    • For all other errors, the servicer must complete the investigation, resolution and notification within 30 days. A 15 day extension is allowed.
    • For information requests, Either provides the information or explain why the information is not available.
    • For requests for the identity of and contact information for the owner or assignee of the mortgage loan, response must be provided to the borrower within 10 days.
    • For all other requested, response must be provided within 30 days. A 15 days extension is allowed.
Servicers may designate a specific address for borrowers to use for reporting errors and submitting requests for information.  If this address is designated, servicers must:
  • Provide borrowers with written notice of the address, and provide written notices if the address changes.
  • Use the same address for both error reporting and information requests.
  • Ensure the address printed on the periodic statements or the coupon book.
  • Post the designated addressed on any web site that your business maintains if the web site lists contact address for your business.
  • Provide the address and any communication relates to early intervention or loss mitigation in which you provide the borrower with contact information for assistance.

Environment:

Servicing Director

ArticleNumber:

000055370

    • Related Articles

    • Setting up Error Notices and Information Requests

      This procedure covers how to set up error notice and information request tracking as required under the Consumer Financial Protection Bureau's Mortgage Servicing Rule (Regulation X). Open System Administration. Select Table Setup. Select Error/Info ...

    • How to Track Error Notices and Information Requests

      You can add information for a reported error or information request to facilitate the tracking and timely response pursuant to the timing requirements under the Mortgage Loan Servicing Rules (Regulation X). Most requests will consist of a single ...

    • Error Notices and Information Request Reports

      This report determines if reported errors or information requests have been assigned. Past due and unassigned requests are also displayed. The report is located in Event Manager > Customer Service > Reports and can be run any time. Environment: ...

    • Servicing Director Change Requests

      Change Requests A Servicing Director change request is a Product Management description of a Servicing Director product issue. A product issue is usually one of two types: A software problem within the Servicing Director product, causing an error, ...

    • Subsequent ARM Notices and ARM Notices Letter

      When generating a Subsequent ARM notices or an ARM notices letter, the following must be true: There must be a valid index rate. This is based on there being a record in the Index Table that corresponds to the Look Back Period Date. You get the Look ...