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Qualified Written Request Information
Qualified Written Request Information is hard to come by. One of the reasons factual in depth literature is seldom available, Attorneys mostly compose them and they do not work for free. It has only been recent the general public even heard the term "QWR".
A well composed Qualified Written Request (QWR) is essential in obtaining a beneficial loan modification. A QWR puts the lender on notice; you have questions, concerns and doubts, about the validity of your loan. By law, to be exact, the Real estate Settlement Procedure Act, 12 U.S.C sections 1-19, borrowers have many rights and actions of recourse if a servicer, lender or bank does not comply with the lending laws set forth. Only intuitions who are insured by any agency of the Federal Government are liable under these sections. Lending Intuitions have so many restrictions and guidelines to follow; it is next to impossible to be compliant under law, on every mortgage. Recent audits revealed 83 out of every 100 loans originated between 1999 and 2008 contain violation of some sort.
How does this correlate to homeowners facing foreclosure? A Qualified Written Request letter can be sent to your lender requesting proof that your loan was compliant from application thru funding. This is a tall task for a busy lending institution to adhere to in a timely manor. Most of the time, prior funded loan documents are kept in a ware house, off site. The lender must locate the requested loan, make sure all documents are in the folder, then scramble around if they are not.
Lenders, Banks and Servicers bundle loans together to sell. The cleaner the loan, the more points may be charged. Just like, you would wash your car to clean away the dirt before selling; many Lenders, Banks and Intuitions do the same. Unfortunate for a lender, if a loan application did not get signed nor dated 3 day after a credit report was ordered, or the title company lost a document before mailing the closed loan package back to the lender, or the loan officer told you an interest rate that was more than 1/8 higher than the actual rate, or you were not properly notified of a transfer of your loan, or required more than the standard escrow amount to be collected, or charged 1 dollar to much in closing costs, or did not give you the chance to chose your own closing agent, or didn't allow for 3 full days of rescission before funding a refinance, and on and on and on.
A well composed Qualified Written Request will require your lender to take timely action on a loan modification, loan documents request or correction of errors. If a homeowner is currently in foreclosure a (QWR) is a first line of defense. Lenders are required under RESPA Law section 6 to provide a written response acknowledging receipt of the correspondence within 20 days (excluding legal public holidays, Saturdays, and Sundays) unless the action requested is taken within such period. If acknowledge receipt is given, a lender has no more than 60 days (excluding legal public holidays, Saturdays, and Sundays) to taken action on your request. Also, during the 60-day period beginning on the date of the servicer's receipt from any borrower of a qualified written request relating to a dispute regarding the borrower's payments, a servicer may not provide information regarding any overdue payment, owed by such borrower and relating to such period or qualified written request, to any consumer reporting agency (as such term is defined under section 603 of the Fair Credit Reporting Act).
Click here to view a sample Qualified Written Request.
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