Loan Modification Program Video #4
Preparation Of The Qualified Written Request
In this episode we’ll be talking about the preparation of the Qualified Written Request, a document that, although not required by loan modification programs, can be very helpful in obtaining results through a loan modification program.
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When contemplating whether a loan modification program could be beneficial, it is common for a homeowner not to have enough information about their mortgage to complete a mortgage loan modification application or make a well-informed decision. As noted in part 1 of this series, in an attempt to get all relevant information about a loan, we first make a telephone call to the servicer and then send an informal request for loan information. In the event that we do not hear back in 3 weeks we then send a formal demand known as a “Qualified Written Request.” Even though we wait when time allows A Qulaified Written Request can be sent at any time before, during, or after a loan modification.
Federal law forces a loan servicer to take specific actions when a Qualified Written Request is sent to them when in regards to a loan modification program or not. The servicer must acknowledge the request within 20 days of receipt, and upon receipt the servicer has 60 days to conduct an investigation. Following the investigation they must provide the information requested, if available; make any necessary corrections to the account; and inform the homeowner of its progress and any other actions. During the 60-day investigation period the servicer is prohibited from reporting related overdue payments to a credit reporting agency. Available on this site are our instructions for assembly of our Loan Modification Binder and what we consider Loan Modification Vital Documents.
The Qualified Written Request must include adequate information in order for the servicer to identify the account or borrower. Typical information would be name of borrower, property address, and loan number. Additionally the request must include the reasons why the borrower believes the account is in error or a detailed statement of the information that is desired. We have produced a Loan Modification Software and Loan Modification Guide to help homeowners get a better understanding of their situation and in some cases do the modification themselves.
Typical reasons for an account being in error or information that could be desired for loan modifications are: a complete payment history, including but not limited to the dates and amounts of all the payments made on the loan to date;
a breakdown of the amount of claimed arrears or delinquencies, Including an itemization of all fees charged to the account;
an explanation of how the amount due on the Monthly Billing Statement was calculated;
the payment dates, purpose of payment and recipient of any and all foreclosure fees and costs that have been charged to your account;
the payment dates, purpose of payment and recipient of all escrow items charged to the account since the date the Servicing Company took over the servicing;
a breakdown of the current escrow charge, showing how it is calculated and the reasons for any increase within the last 24 months;
a copy of any annual escrow statements and notices of a shortage, deficiency or surplus, sent within the last three years;
and a copy of the original loan documents.
A Qualified Written Request must be in writing and should be sent by certified mail to the servicer. To make sure that it gets sent to the right department within the servicer’s company, not the home loan modification department, it is safest to call the servicer and ask for the address where requests should be directed.
In the event the Servicer does not respond to the request in a timely manner they are liable to the homeowner for damages, costs, and reasonable attorney fees. A borrower may bring a private law suit, or a group of borrowers may bring a class action suit against a servicer who fails to comply with the Qualified Written Request if the evidence reveals a pattern of noncompliance. Borrowers may obtain actual damages, as well as additional damages if there is a pattern of noncompliance.
Although not required, a Qualified Written Request can be a useful tool in gathering information about your mortgage (loan mods) and can be of assistance in your attempts to be accepted into a loan modification program. Homeowners are able to submit possible violations for seeking damages free of charge at the National Council for Ethical Loan modification website – NCELM.ORG
I am Loss Mitigation Specialist Damian Falcone, and this is Get Modified.
We are happy to be a member of Las Vegas Loan Modification and look forward to making a difference in our surroundings.