A borrower writes to a CRMLA servicer on 2 February alleging that 3 payments were misapplied. Assuming this is a qualifying Regulation X notice of error, what initial acknowledgement and investigation duties apply?
Correct Answer
B) Acknowledge within 5 business days and investigate on the longer clock
A notice of error is acknowledged within 5 business days and answered on the period the kind of error attracts, under Regulation X, which binds the state licensee. Other choices: a full investigation in 5 days is not what is asked; 60 days is not the only clock; and a servicer may not require its own form. Source: 12 CFR 1024.35(d); Cal. Fin. Code § 50000 et seq.
Why This Is the Correct Answer
A notice of error is acknowledged within 5 business days and answered on the period the kind of error attracts, under Regulation X, which binds the state licensee. Other choices: a full investigation in 5 days is not what is asked; 60 days is not the only clock; and a servicer may not require its own form. Source: 12 CFR 1024.35(d); Cal. Fin. Code § 50000 et seq.
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