Settlement Information

By Bud Coburn

http://www.actionplus-hi.com

reasonable value of their work. If aparticipant in your settlement appears to be taking a fee without having done any work, you shouldadvise that person or company of the RESPA referral-fee prohibitions. You may also speak with yourattorney or complain to a regulator.

penalties:  It is a crime for someone to pay or receive an illegal referral fee. The penalty can be a fine, imprisonment, or both. You may be entitled to recover three times the amount of the charge for any settlement service by bringing a private lawsuit. If you are successful, the court may also award you court costs and your attorney’s fees.

private lawsuits:  If you have a problem, the best place to have it fixed is at its source (the lender, settlement agent, broker, etc.). If that approach fails and you think you have suffered because of a violation of RESPA, ECOA, or any other law, you may be entitled to sue in a federal or state court. This is a matter you should discuss with your attorney.

government agencies:  Most settlement service providers are supervised by a governmentalagency at the local, state and/or federal level.Your state’s Attorney General may have a consumer affairs division. If you feel that a provider ofsettlement services has violated RESPA or any other law, you can complain to that agency orassociation. You may also send a copy of your complaint to the HUD Office of Consumer andRegulatory Affairs.
 
servicing errors:  If you have a question at 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” 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.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s