How to Dispute Mortgage Servicer Errors

Is your mortgage company not applying payments or making another error with your account? Here's how to make your servicer correct an error or give you important information.

By Amy Loftsgordon , Attorney University of Denver Sturm College of Law Updated 8/01/2024

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Mortgage servicers sometimes make serious errors when handling a homeowner's loan account. Fortunately, a federal law, the Real Estate Settlement Procedures Act (RESPA), provides a way to make the servicer correct an error if you believe it made a mistake when managing your mortgage. Specifically, you must send the servicer a "notice of error." RESPA also allows you to get specific information about your mortgage account from your loan servicer by sending a "request for information."

Common Types of Mortgage Servicer Errors

With so many duties and variables, there's a lot of room for mistakes in loan servicing. Under RESPA, the following servicer errors can be addressed in a notice of error:

How to Dispute Mortgage Servicing Errors Under RESPA

Whether you want to notify the servicer about an error or get information about your account, you must send your servicer a letter. Under amendments to Regulation X, which implements RESPA, your letter will be considered a notice of error or a request for information.

Different time limits apply for when the servicer must respond to your letter based on the type of request you send.

Send Your Letter to the Correct Place

Be sure to send your notice of error or request for information to the specific mailing address that the servicer designates for this purpose. Or you might be able to send your notice of error to the lender online through email or a secure messaging system. Usually, you can find the information for where to send your letter on your loan servicer's website, your billing statement, or you can call the servicer and ask.

RESPA Notice of Error for Your Mortgage Account

If you send a letter to notify the servicer about a particular error it made when managing your loan, the servicer must correct the error, provide notification of the correction, and give contact information for you to follow up, or let you know that no error occurred along with the reasons for this conclusion.

What to Expect Next After Sending a Notice of Error

After you send a notice of error to your loan servicer, here's what happens.

The servicer must acknowledge your notice of error. The servicer must acknowledge a written notice that asserts a particular error within five business days. ( 12 C.F.R. § 1024.35 (2024).)

The servicer must respond to your notice of error. How much time the servicer gets to respond to your notice of error depends on the type of error that you claim the servicer committed.

Extension of time to respond. The servicer may generally extend the 30-day period by 15 days if, within the 30 days, it informs you about the extension and tells you why there is a delay. (12 C.F.R. § 1024.35 (2024).)

However, a 15-day extension isn't allowed if your notice of error concerns a payoff statement or saying the servicer started a foreclosure or moved for a foreclosure judgment or order of sale, or conducted a foreclosure sale in violation of the law. (12 C.F.R. § 1024.35 (2024).)

Sending Your Servicer a Request for Information

A request for information can be useful if you're unsure whether the servicer made an error and want to get information about your account to help you make this determination. For example, you might want to see the servicer's records regarding your payment history.

What to Expect Next After Sending a Request for Information

After you send a request for information to your loan servicer, here's what happens.

The servicer must acknowledge your request for information. If you send a written request for information, the servicer must acknowledge your inquiry within five days. ( 12 C.F.R. § 1024.36 (2024).)

The servicer must respond to your request for information. The servicer must generally give you the information you requested within 30 business days or explain why the information is not available, as well as provide you with the name and contact information of someone you can follow up with. (12 C.F.R. § 1024.36 (2024).)

The servicer must provide the information you requested within ten business days if you're trying to find out the identity, address, or other contact information for the owner of your mortgage loan. (12 C.F.R. § 1024.36 (2024).) (But the servicer can't get a 15-day extension to respond; see below.)

Extension of time to respond. The servicer gets 15 extra days to respond if it notifies you about the extension within the 30-day period and lets you know the cause of the delay. ( 12 C.F.R. § 1024.36 (2024).)

When the Servicer Doesn't Have to Respond to Notice of Error or Request for Information

The servicer doesn't have to address your notice of error or request for information in some situations, like if:

But the servicer can't just ignore your notice, even if it fits one of the four criteria above. It must notify you within five business days after determining that it doesn't have to deal with your notice or request and give you the basis for the determination. (12 C.F.R. § 1024.35, 12 C.F.R. § 1024.36 (2024).)

How to Write a Notice of Error or Request for Information Letter

You can find a sample notice of error letter and request for information letter, along with useful information about what to include in the letter, at the Consumer Financial Protection Bureau's website.

If you're sending a notice of error and also want to request specific information, you can send a single letter. Or you can send your notice of error and request for information letters separately.

Getting Help

If your servicer doesn't respond to your notice of error or request for information, disagrees that it made an error, or refuses to provide certain information, consider consulting with a lawyer.

Talk to an attorney immediately if you're facing an imminent foreclosure sale. Sending the servicer a notice of error or request for information is very unlikely to stop a foreclosure. An attorney can advise you about what to do and help you enforce your rights.

It's also a good idea to talk to a HUD-approved housing counselor if you're having trouble with your mortgage payments or facing a foreclosure.