RESPA Section 6 Flashcards
what is RESPA Section 6
covers Mortgage Servicing and Mortgage Servicing Abuses
what is a mortgage servicer
a company that collects monthly payments, pays taxes, Insurance and notifies borrower of late payments
what have many mortgage services been accused of prior to the mortgage meltdown
-excessive foreclosures or modification fees
-foreclosing without the proper paper work
-failing to help people stay in their homes
what is forced placed insurance
Loan Servicer’s have the right to administer “Forced Placed Insurance” when the servicer believes that the policy has been canceled or not renewed
when can loan servicer’s administer forced placed insurance
when the servicer believes that the police has been canceled or not renewed
what are some guidelines that mortgage servicer’s must follow when placing forced placed insurance
- must notify the borrower 45 days before charging the borrower
-must send a 2nd notice 30 days before charging the borrower - must protect the lender
who does force placed insurance cover
it protects the lender, not the homeowner or possessions of the homeowner
when a borrower complains under RESPA Section 6 what occurs
- Loan servicers have 5 days to acknowledge borrowers complaint
-45 days to resolve or explain their position
what happens if there are any missed or delinquent mortgage payments
the servicer must attempt to speak with the delinquent borrowers within 36 days after the missed payment
what happens 45 days after a borrowers missed payment
services must mail/offer lost mitigation information
when must servicer’s mail/offer loss mitigation information
within 45 days of a borrowers missed payment
what must servicer’s acknowledge if a borrower has a missed payment
the servicer must acknowledge the receipt of a loan mitigation application
when must the servicer acknowledge the receipt of a loan mitigation application
within 5 days
what occurs if the servicer receives the mitigation application 37 days before a foreclosure sale
the applications must be evaluated for all applicable options within 30 days
a servicer cannot file a pre foreclosure notice of default until when
until the mortgage payment is 120 days late
