Shopping For Your Home Loan: Hud'S Settlement Cost Booklet - U.s. Department Of Housing And Urban Development (Hud) Page 30
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48IX. Your Loan after Settlement
After settlement, RESPA requires that lenders give you disclosures concerning
the servicing of your loan and any escrow account. RESPA also gives you certain
protections in regard to the timely payment of your taxes and insurance.
Servicing and Escrow Disclosure Statements
The company that collects your mortgage payments is your loan servicer. This
may not be your lender. When you apply for your loan or within three business days,
RESPA requires that your lender or mortgage broker tell you in writing whether
someone else may be servicing your loan. After your settlement, if your loan servicer
transfers the servicing of your loan to a new servicer, RESPA requires that you be
notified in writing at least fifteen (15) days before the transfer. The notice must tell
you when the transfer is effective and when you will begin making payments to the
new servicer. The notice letter must also give you the contact information for the
new servicer as well as other important information about the servicing of your loan.
If your loan requires an escrow account, the servicer of your loan must give
you an initial escrow account statement at your settlement or within the following
forty-five (45) days. That form will show all of the payments which are expected to
be deposited into your escrow account and all of the disbursements which are
expected to be paid from the escrow account during the year.
Your servicer will
review your escrow account annually and send you a disclosure each year which
shows the prior year’s activity and any adjustments necessary in the escrow
payments that need to be made in the upcoming year. You will not receive this yearly
disclosure if your loan is in default.
Remember that your monthly payment can
increase if your taxes or insurance payments increase.
Servicing Errors
If you have a question any time during the life of your loan, RESPA requires
the company collecting your loan payments (your “servicer”) to respond to you.
Write to your servicer and call it a “qualified written request under Section 6 of
RESPA.”
A “qualified written request” (QWR) should be a separate letter and not
mailed with the payment coupon. Describe the problem and include your name and
account number.
The servicer must investigate and make appropriate corrections
within 60 business days.
Complaints
RESPA provides you with certain consumer protections during the loan
process and during the servicing of your loan after settlement. If your lender
charged you more than the allowable tolerances at settlement and failed to
reimburse you; if you are aware that one of your settlement service providers paid
or received a fee or kickback for referring business to someone; if you were
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