Difference between revisions of "Chase/RESPA"

Latest revision as of 05:03, 6 May 2024

The Real Estate Settlement Procedures Act (RESPA), was an congressional act passed by the United States Congress in 1974. It is codified at Title 12, Chapter 27 of the United States Code, 12 U.S.C. §§ 2601–2617.

On July 21, 2011, administration and enforcement of the Real Estate Settlement Procedures Act (RESPA) was transferred from the Department of Housing and Urban Development to the Consumer Financial Protection Bureau (CFPB).^[1][2]

Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010

In 2010, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which sought to remedy mortgage issues through a series of substantial amendment to the:

The law is 2,300 pages long.^[4][5]

Related to foreclosure:

• Chase has an obligation to correct errors by the borrower;
• provide certain information requested by a borrower
• Chase is obligated to establish reasonable policies and procedures
• to provide information about mortgage loss mitigation options to delinquent borrowers
• creates a single point of contact,
• evaluate borrowers’ applications for available loss mitigation options.^[6]

1. Chase is required to provide borrowers with easy access to employees who are dedicated and empowered to help them.
2. Chase must store borrowers' information in a way that allows it to be easily accessible. They must also have policies and procedures in place to ensure that they can provide timely and accurate information to borrowers, investors, and in any foreclosure proceeding, the courts.^[7]

Damages and interest payment penalties

• Dodd-Frank §§ 1463(b) allows for statutory damages of $2,000 for a “pattern or practice of noncompliance.”^[8]
• Establishes Penalties for Irresponsible Lending: Lenders and mortgage brokers who don’t comply with new standards will be held accountable by consumers for as high as three-years of interest payments and damages plus attorney’s fees (if any). Protects borrowers against foreclosure for violations of these standards.^[9]

Qualified Written Request

A borrower may sue Chase for violations of a qualified written request within three years.^[10]

Questions

If you are a consumer with a question or complaint related to Chase, please call at (855) 411-2372, or by fax number (855) 237-2392.^[11]

Notes

1. ↑ RESPA - Real Estate Settlement Procedures Act, HUD.
2. ↑ Dodd-Frank Amendments, RESPA News"Section 1061(b)(7) transfers RESPA’s regulatory authority from the U.S. Department of Housing and Urban Development (HUD) to the CFPB.
3. ↑ Litigation Exposure Under The 2013 Dodd-Frank Mortgage Servicing Regulations, Burr & Forman LLP
4. ↑ Dodd-Frank Amendments, RESPA News
5. ↑ Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 also modifies the Truth in Lending Act (“TILA”) which statues are not involved in foreclosures.

   Law name	Statute	Regulation name	Purpose	Full law
   Truth in Lending Act (“TILA”)	15 U.S.C. §§1601, et seq.	"Regulation Z"	requires prompt tendering of pay off statement upon borrower’s written request	Regulation Z: Full law

6. ↑ 2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules, Consumer Financial Protection Bureau.
7. ↑ New rules aim to protect homeowners from foreclosure - CNN, (January 17, 2013).
8. ↑ Dodd Frank Amendments, RESPA News.
9. ↑ Brief Summary of the Dodd-Frank Wall Street Reform and Consumer Protection Act, United States Senate, (2010).
10. ↑ More Information About RESPA, Department of Housing and Urban Development
11. ↑ RESPA - Real Estate Settlement Procedures Act, Department of Housing and Urban Development]