A servicer fails to pay property taxes from escrow, resulting in a tax lien on the property. The borrower's escrow account had sufficient funds. What is the borrower's primary recourse?
Correct Answer
A) File a complaint with the Consumer Financial Protection Bureau
When a servicer fails to make required disbursements from escrow despite having sufficient funds, this violates RESPA Section 10. The borrower's primary recourse is to file a complaint with the CFPB, which can investigate and take enforcement action. The borrower may also have legal remedies for damages caused by the servicer's failure.
Why This Is the Correct Answer
When a servicer fails to make required disbursements from escrow despite having sufficient funds, this violates RESPA Section 10. The borrower's primary recourse is to file a complaint with the CFPB, which can investigate and take enforcement action. The borrower may also have legal remedies for damages caused by the servicer's failure.
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