Updated 2020
If you are having problems with your mortgage, such as payments not being credited or not knowing what you owe, laws effective 2014, which are still good today (as of June 2020), help you. You have many options for dealing with problems on their mortgages.
How Do I Get Information About My Mortgage?
Mortgage companies and servicers required to respond to requests for information and notices of error
These changes should help you get information and fix problems with your mortgage. You can now:
- Notify your servicer if they have made an error on your payment;
- Request information regarding your mortgage account — how payments are being applied and what expenses, like taxes and insurance, the servicer is paying. You may also seek information regarding a loan modification application.
Mortgage servicers must respond to your requests for information within 5 business days (under the old law, they had 20 days). This means that if you are in dispute with a servicer regarding how your monthly payment is being applied, you can find out exactly what is going on quickly.
If there is an error, the servicer has 30 days to correct it or conduct an investigation and explain why the servicer believes the account is correct. Under the old law, they had 60 days. There are some exceptions to the time deadlines. During the 30 day response period, the servicer cannot report missed payments to your credit report for 60 days after receipt of the notice of error.
What Information Is My Mortgage Company Required to Give Me?
More detailed information required in mortgage loan statements
The mortgage statement is required to reveal more information regarding your home loan so that you can identify and understand errors. Under the new law, the statement must advise you of:
- Current amount due
- Any fees or charges added
- Past payment breakdown
- Transaction activity
- Partial payment information
- Contact information
- Account information
- Delinquency information – once a borrower is 45 days delinquent, more detail including the account history for the last 6 months or since the last time the account was current must be provided; notice of whether foreclosure has been initiated; total payment needed to bring the account current; and contact info for help.
I Filed Bankruptcy and Am No Longer Receiving My Monthly Mortgage Statements or Payment Coupons. What Can I Do?
Your mortgage company is required to send statements upon request, even if you are in bankruptcy. Mortgage companies do often stop sending statements once you file bankruptcy. You must request in writing for statements to continue directly to you. If you need help, talk with your bankruptcy attorney.
My Mortgage Company Won’t Provide Information or Fix the Error. What Can I Do?
If you cannot get your mortgage company to give you info or correct the error, you can file a complaint with the Consumer Finance Protection Bureau.
Can My Mortgage Company Charge Me for Insurance on My Property at a Really High Rate?
If you fail to insure your property, the mortgage company can purchase insurance to cover the loan. This is usually called “force-placed insurance.” For them to do this, they must:
- Send you at least 2 notices that they intend to buy insurance to cover their loan if you don’t.
- Refund the charge to the extent that you had insurance.