topic Mortgage transferred....they mentioned we have protections under RESPA (?) in Mortgage Loans

Mortgage transferred....they mentioned we have protections under RESPA (?)

GApeachy — Sat, 09 Mar 2019 19:18:25 GMT

We are current but we got letters from new mort. co and I called and spoke with a csr who mentioned the protection under respa if we needed to use while making the transition. Pay late, no problem...no fee charged and not reported. (?) Edit: Kinda sounded good but I've never heard of RESPA. So what is it?

Re: Mortgage transferred....they mentioned we have protections under RESPA (?)

CreditInspired — Sat, 09 Mar 2019 18:49:12 GMT

Honestly, I would not take the CSR word for it.

I think she’s talking about a 60-day grace period after the transfer: during this time you cannot be charged a late fee if you mistakenly send your mortgage payment to the old servicer.

If it were me, I would continue to make my payments on time.

Re: Mortgage transferred....they mentioned we have protections under RESPA (?)

GApeachy — Sat, 09 Mar 2019 19:16:05 GMT

@CreditInspired wrote:
Honestly, I would not take the CSR word for it.

I think she’s talking about a 60-day grace period after the transfer: during this time you cannot be charged a late fee if you mistakenly send your mortgage payment to the old servicer.

If it were me, I would continue to make my payments on time.

Okay, thank you for telling me that. I felt like it could be a trick to put us in an unfavorable position. Plus I was worried that in fact it could be something reported to the bureaus so all of it did not sit right with me. Glad I paid!

Re: Mortgage transferred....they mentioned we have protections under RESPA (?)

zerofire — Sat, 09 Mar 2019 22:10:16 GMT

RESPA (Real Estate Settlement Procedures Act) requires some disclosures from lenders to consumers but Section 6 is the one that they were referring to. RESPA Section 6 requires that servicers(your new company) to not abuse you in the servicing of your loan like marking it late if you send it to the original company. You will have 20 days to file said complaint and they have 60 to fix it or explain themselves why they will not. The simplified part is that you basically get some protection in transition from your old servicer/lender to your new servicer.

In short the CSR was correct but they severely simplified. Be aware that government has handled this already because some wise ass lender thought it was a good idea to bend ethics in the past for profit.