MORTGAGE RIGHTS
How To Protect Yourself RESPA and TILA - Violation of the CFPB Regulations
With two exceptions (General Servicing Policies, Procedures, and Requirements and Continuity of Contact) all of the new regulations of servicers imposed by the Consumer Financial Protection Bureau can be enforced by consumers in court. A homeowner can recover actual damages, statutory damages, costs and attorneys fees. Actual damages are the out-of-pocket expenses you suffered as a result of the servicer's failure to comply with the regulations. Statutory damages are awarded if you succeed with your lawsuit claiming the servicer violated the statutes. Your lawsuit must plead and prove the following elements: You sent correspondence to the servicer correctly that triggered an obligation on the part of the servicer to respond in the manner required by the regulations. The servicer failed to respond as required by the regulations. You were damaged by the servicer's failure to respond. As you can see from this list, the litigation will focus on whether your Notice or Request was sufficient to require the servicer to respond; whether the servicer's response was adequate; whether the servicer's failure to respond or only responding inadequately damaged you. The damage question actually has two parts: whether the harm you suffered is the type of harm that the statute recognizes as a compensable harm, and whether the servicer's failure to act actually caused that harm. For example, you send a Notice of Error that one of your payments was not credited (recorded in your account). The servicer responds with a form letter (so happy you contacted us!) to which it has stapled copies of your note, mortgage, account history, annual escrow statements, home appraisal and payoff quote that it printed from its computer system. The court will first decide whether your Notice was sufficient. Was it in writing? Did you send it to the right address? Did it include your name, address and loan number? Did it clearly identify the problem? The court will ask two questions about the servicer's response: Did the servicer conduct a reasonable investigation? Did the servicer explain its reasons for not correcting the error? The dictionary defines "investigation" as the action of investigating; the making of a search or inquiry; systemic examination; careful and minute research. In our hypothetical example, the servicer did not make a search or inquiry concerning the validity of your claim that the payment had been credited: it simply pulled documents from the computer system. This does not qualify as a reasonable investigation. Let's assume that the servicer did not correct the error you identified. Consequently, it was obligated to explain why it believed that its records did not need to be changed. The failure to provide an explanation, coupled with its failure to conduct an investigation is evidence that the servicer's response was inadequate. The next question is whether you suffered out-of-pocket expenses because of the servicer's failure to respond. In our example, a payment was not credited. As I explained in Challenging the Amount Due, an error affecting the calculation of how much should be allocated to principal and interest affects every calculation of principal and interest in the following months. If you were to prepare a spreadsheet that correctly credits the missing payment and compare it to the account history given you by the servicer, you may find that you would have paid less interest in the period following the mistake. You may also find that you would not have paid late fees. The late fees and higher interest payments are actual damages caused by the servicer's failure to correct your account.
NEXT: Taking Action and Filing a Lawsuit
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
How To Protect Yourself RESPA and TILA - Violation of the CFPB Regulations With two exceptions (General Servicing Policies, Procedures, and Requirements and Continuity of Contact) all of the new regulations of servicers imposed by the Consumer Financial Protection Bureau can be enforced by consumers in court. A homeowner can recover actual damages, statutory damages, costs and attorneys fees. Actual damages are the out-of-pocket expenses you suffered as a result of the servicer's failure to comply with the regulations. Statutory damages are awarded if you succeed with your lawsuit claiming the servicer violated the statutes. Your lawsuit must plead and prove the following elements: You sent correspondence to the servicer correctly that triggered an obligation on the part of the servicer to respond in the manner required by the regulations. The servicer failed to respond as required by the regulations. You were damaged by the servicer's failure to respond. As you can see from this list, the litigation will focus on whether your Notice or Request was sufficient to require the servicer to respond; whether the servicer's response was adequate; whether the servicer's failure to respond or only responding inadequately damaged you. The damage question actually has two parts: whether the harm you suffered is the type of harm that the statute recognizes as a compensable harm, and whether the servicer's failure to act actually caused that harm. For example, you send a Notice of Error that one of your payments was not credited (recorded in your account). The servicer responds with a form letter (so happy you contacted us!) to which it has stapled copies of your note, mortgage, account history, annual escrow statements, home appraisal and payoff quote that it printed from its computer system. The court will first decide whether your Notice was sufficient. Was it in writing? Did you send it to the right address? Did it include your name, address and loan number? Did it clearly identify the problem? The court will ask two questions about the servicer's response: Did the servicer conduct a reasonable investigation? Did the servicer explain its reasons for not correcting the error? The dictionary defines "investigation" as the action of investigating; the making of a search or inquiry; systemic examination; careful and minute research. In our hypothetical example, the servicer did not make a search or inquiry concerning the validity of your claim that the payment had been credited: it simply pulled documents from the computer system. This does not qualify as a reasonable investigation. Let's assume that the servicer did not correct the error you identified. Consequently, it was obligated to explain why it believed that its records did not need to be changed. The failure to provide an explanation, coupled with its failure to conduct an investigation is evidence that the servicer's response was inadequate. The next question is whether you suffered out-of-pocket expenses because of the servicer's failure to respond. In our example, a payment was not credited. As I explained in Challenging the Amount Due, an error affecting the calculation of how much should be allocated to principal and interest affects every calculation of principal and interest in the following months. If you were to prepare a spreadsheet that correctly credits the missing payment and compare it to the account history given you by the servicer, you may find that you would have paid less interest in the period following the mistake. You may also find that you would not have paid late fees. The late fees and higher interest payments are actual damages caused by the servicer's failure to correct your account.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
How To Protect Yourself RESPA and TILA - Violation of the CFPB Regulations With two exceptions (General Servicing Policies, Procedures, and Requirements and Continuity of Contact) all of the new regulations of servicers imposed by the Consumer Financial Protection Bureau can be enforced by consumers in court. A homeowner can recover actual damages, statutory damages, costs and attorneys fees. Actual damages are the out-of-pocket expenses you suffered as a result of the servicer's failure to comply with the regulations. Statutory damages are awarded if you succeed with your lawsuit claiming the servicer violated the statutes. Your lawsuit must plead and prove the following elements: You sent correspondence to the servicer correctly that triggered an obligation on the part of the servicer to respond in the manner required by the regulations. The servicer failed to respond as required by the regulations. You were damaged by the servicer's failure to respond. As you can see from this list, the litigation will focus on whether your Notice or Request was sufficient to require the servicer to respond; whether the servicer's response was adequate; whether the servicer's failure to respond or only responding inadequately damaged you. The damage question actually has two parts: whether the harm you suffered is the type of harm that the statute recognizes as a compensable harm, and whether the servicer's failure to act actually caused that harm. For example, you send a Notice of Error that one of your payments was not credited (recorded in your account). The servicer responds with a form letter (so happy you contacted us!) to which it has stapled copies of your note, mortgage, account history, annual escrow statements, home appraisal and payoff quote that it printed from its computer system. The court will first decide whether your Notice was sufficient. Was it in writing? Did you send it to the right address? Did it include your name, address and loan number? Did it clearly identify the problem? The court will ask two questions about the servicer's response: Did the servicer conduct a reasonable investigation? Did the servicer explain its reasons for not correcting the error? The dictionary defines "investigation" as the action of investigating; the making of a search or inquiry; systemic examination; careful and minute research. In our hypothetical example, the servicer did not make a search or inquiry concerning the validity of your claim that the payment had been credited: it simply pulled documents from the computer system. This does not qualify as a reasonable investigation. Let's assume that the servicer did not correct the error you identified. Consequently, it was obligated to explain why it believed that its records did not need to be changed. The failure to provide an explanation, coupled with its failure to conduct an investigation is evidence that the servicer's response was inadequate. The next question is whether you suffered out-of-pocket expenses because of the servicer's failure to respond. In our example, a payment was not credited. As I explained in Challenging the Amount Due, an error affecting the calculation of how much should be allocated to principal and interest affects every calculation of principal and interest in the following months. If you were to prepare a spreadsheet that correctly credits the missing payment and compare it to the account history given you by the servicer, you may find that you would have paid less interest in the period following the mistake. You may also find that you would not have paid late fees. The late fees and higher interest payments are actual damages caused by the servicer's failure to correct your account.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
How To Protect Yourself RESPA and TILA - Violation of the CFPB Regulations With two exceptions (General Servicing Policies, Procedures, and Requirements and Continuity of Contact) all of the new regulations of servicers imposed by the Consumer Financial Protection Bureau can be enforced by consumers in court. A homeowner can recover actual damages, statutory damages, costs and attorneys fees. Actual damages are the out-of-pocket expenses you suffered as a result of the servicer's failure to comply with the regulations. Statutory damages are awarded if you succeed with your lawsuit claiming the servicer violated the statutes. Your lawsuit must plead and prove the following elements: You sent correspondence to the servicer correctly that triggered an obligation on the part of the servicer to respond in the manner required by the regulations. The servicer failed to respond as required by the regulations. You were damaged by the servicer's failure to respond. As you can see from this list, the litigation will focus on whether your Notice or Request was sufficient to require the servicer to respond; whether the servicer's response was adequate; whether the servicer's failure to respond or only responding inadequately damaged you. The damage question actually has two parts: whether the harm you suffered is the type of harm that the statute recognizes as a compensable harm, and whether the servicer's failure to act actually caused that harm. For example, you send a Notice of Error that one of your payments was not credited (recorded in your account). The servicer responds with a form letter (so happy you contacted us!) to which it has stapled copies of your note, mortgage, account history, annual escrow statements, home appraisal and payoff quote that it printed from its computer system. The court will first decide whether your Notice was sufficient. Was it in writing? Did you send it to the right address? Did it include your name, address and loan number? Did it clearly identify the problem? The court will ask two questions about the servicer's response: Did the servicer conduct a reasonable investigation? Did the servicer explain its reasons for not correcting the error? The dictionary defines "investigation" as the action of investigating; the making of a search or inquiry; systemic examination; careful and minute research. In our hypothetical example, the servicer did not make a search or inquiry concerning the validity of your claim that the payment had been credited: it simply pulled documents from the computer system. This does not qualify as a reasonable investigation. Let's assume that the servicer did not correct the error you identified. Consequently, it was obligated to explain why it believed that its records did not need to be changed. The failure to provide an explanation, coupled with its failure to conduct an investigation is evidence that the servicer's response was inadequate. The next question is whether you suffered out-of-pocket expenses because of the servicer's failure to respond. In our example, a payment was not credited. As I explained in Challenging the Amount Due, an error affecting the calculation of how much should be allocated to principal and interest affects every calculation of principal and interest in the following months. If you were to prepare a spreadsheet that correctly credits the missing payment and compare it to the account history given you by the servicer, you may find that you would have paid less interest in the period following the mistake. You may also find that you would not have paid late fees. The late fees and higher interest payments are actual damages caused by the servicer's failure to correct your account.
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.  MORTGAGE RIGHTS