A loan servicer fails to respond to a borrower's qualified written request within the required timeframe. What is the maximum penalty the servicer may face per violation?
Correct Answer
B) $2,000
Under RESPA Section 6, servicers who fail to comply with QWR requirements may be liable for damages up to $2,000 per violation, plus attorney fees.
Why This Is the Correct Answer
Under RESPA Section 6, servicers who fail to comply with QWR requirements may be liable for damages up to $2,000 per violation, plus attorney fees.
More Federal Laws Questions
A mortgage broker's website states 'Qualified borrowers can get loans with down payments as low as 3%.' Which statement about TILA advertising requirements is correct?
A loan's APR increases from 4.25% on the Loan Estimate to 4.35% on the Closing Disclosure due to a rate lock expiration. What action is required?
A lender originates a mortgage that meets all QM requirements. Three years later, the borrower defaults and claims the lender violated the ATR rule. What legal protection does the lender have?
For a closed-end mortgage loan, when must the creditor provide the Closing Disclosure to the borrower?
Which of the following documents must be provided to trigger the start of the 3-day rescission period?
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A lender offers a borrower a choice between paying discount points upfront or accepting a higher interest rate with a lender credit. The borrower chooses the lender credit option. For APR calculation purposes, how should the lender credit be treated?