Navigating Mortgage Discrepancies

In a previous post, we explored an array of circumstances that could result in a shift in your mortgage after closing. These alterations might stem from rising taxes, new service charges, among other variables, leading to potentially significant effects on your mortgage. Monitoring your mortgage for such alterations is crucial, especially if your servicer makes an inadvertent mistake. Should a mistake occur on your mortgage, there are several remedial options at your disposal.

Challenging Mortgage Errors

Legal provisions permit you to contest errors such as misapplied or miscredited payments, imposition of unjust fees, or improper initiation of a foreclosure sale. If you suspect that your servicer has committed an error and wish to challenge it, initiating a call to your servicer via the contact details on your monthly mortgage statement is a good starting point. Nevertheless, the Consumer Financial Protection Bureau advises that all requests and responses be documented in writing. Therefore, you might need to dispatch a letter to your mortgage servicer detailing the discovered discrepancies. When drafting this letter, ensure you incorporate the following details:

• Your full legal name
• Your residential address
• Mortgage account number
• The specific error or misinformation on your most recent payment

Please note that your servicer might have a distinct postal address for correspondence pertaining to error reports or information requests. You can locate this and more contact details online or on your mortgage statement. Upon receipt of your letter, your servicer must acknowledge it within five business days. However, the duration it takes for the servicer to respond to the actual error may vary depending on the nature of the error. Usually, a response or request for further information should come within 30 business days. In some instances, the servicer may request an additional 15 days to conduct a thorough investigation into the error. While awaiting the resolution, ensure to maintain your regular mortgage payments.

Requesting Mortgage Information

If you're uncertain about the presence of an error, you might wish to solicit additional information about your mortgage. Like disputing an error, forwarding a letter to your servicer guarantees a prompt, written response. Your servicer must acknowledge your request within five business days of receipt. The standard 30-day response period applies, with a possible 15-day extension. However, in certain situations, the servicer is not obliged to respond to an error or information request. For instance, repetitive letters concerning a similar issue might only be addressed once. Other scenarios where a response might not be necessary include:

• Repeated requests for previously provided or currently dispatched information
• Vague requests lacking the crucial information highlighted above
• Requests for information about a loan that was transferred or settled over a year ago

For more guidance and letter templates, kindly visit ConsumerFinance.gov.

Remember, at CrossCountry Mortgage, we're here to serve you even beyond closing! Reach out to us today for a non-obligatory consultation with our expert Mortgage Advisors.

This article is for educational purposes only and does not constitute financial or mortgage advice. Loan programs, rates, and guidelines may change at any time. All loans are subject to credit approval and underwriting. For guidance tailored to your situation, consult a licensed mortgage professional.