A borrower-facing employee is unsure what to do when a borrower sends a written request for information to the servicer-designated address. What is the correct response?

Correct Answer

A) Acknowledge receipt within five business days

This question tests the specific Regulation X (RESPA) rule for servicer responses to a borrower's written request for information (RFI). The governing concept is that a servicer must acknowledge receipt of a "qualified written request" (or a request for information that triggers these duties) within a defined, short timeframe. Why this is correct: The original explanation cites 12 CFR 1024.36(c), which mandates that a servicer must acknowledge receipt of a borrower's information request within five business days. This is a clear, non-discretionary federal requirement. Why the other choices are wrong: The option "Use an internal exception instead of the required federal disclosure or timing rule" is wrong because internal policies cannot override or substitute for mandatory federal rules. The option "Wait until a regulator asks for the file before applying the federal requirement" is wrong because compliance with the acknowledgment deadline is required upon receipt of the request, not deferred until a regulatory inquiry. The option "Apply the SAFE Act testing timing rule even though the file is testing Regulation X request for information timing" is wrong because the SAFE Act governs MLO licensing and testing, not servicing timelines for borrower requests; applying its unrelated rule here would be incorrect. Exam tip: For Regulation X servicing questions, remember the "five-day" trigger for acknowledging written information requests—it's a common exam point.