Such a request for information is termed a Qualified Written Request, or “QWR,” and may impose on loan servicers a duty to respond to borrowers’ inquiries. Financial institutions and others involved in the servicing of residential mortgage loans need to be aware of the duties that can be triggered by receipt of a QWR, particularly in light of recent changes to the statutory response times applicable to QWRs.What is a QWR and to Whom Does It Apply?A QWR is defined in RESPA, 12 U.S.C. § 2605(e)(1)(B), as:a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer that (i) includes, or otherwise enables the servicer to identify, the name and account of the borrower; and (ii) includes a statement of the reasons for the belief of the borrower, to the extent applicable, that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.The Consumer Financial Protection Bureau (“CFPB”) has noted, in its Official Interpretations of this provision, that a QWR “is not required to include both types of requests.

The Bullet Point: At issue in this case was whether the borrower suffered sufficient damages to support her claims under the Real Estate Settlement Practices Act (RESPA). Here, the borrower brought suit against her mortgagee and loan servicer, alleging that the defendants failed to adequately respond to her qualified written requests (QWR) as required by 12 U.S.C. § 2605(e). The district court determined the borrower failed to plead sufficient damages to constitute an injury-in-fact and dismissed her claims for lack of standing, after which the borrower filed the instant appeal.

35 under 12 U.S.C. [Section] 2605(k)(1)(E) and (j)(3), which provide that the CFPB ‘shall establish any requirements necessary to carry out’ 12 C.F.R. [Section] 2605 and that a servicer shall not ‘fail to comply with any … obligation found by the [CFPB], by regulation, to be appropriate to carry out the consumer protection purposes of this chapter,” the court wrote. Because 12 U.S.C. Section 2605(k)(1)(E) covers violations of 12 C.F.R. Section 1024.35, a violation of Section 1024.

The Fourth Circuit reversed, holding that "RESPA does not limit the reporting of overdue payments to disputes of specifically identified payments but includes any 'qualified written request relating to a dispute regarding the borrower's payments.'" Slip Op. 9 (quoting 12 U.S.C. § 2605(e)(3)) (emphasis added). The holding is significant for several reasons:Rejection of a specificity argument: The Fourth Circuit rejected the argument that the letter was insufficient due to a "lack of specificity," holding instead that the letter was a QWR because it was a "written correspondence" that articulated a "statement of reasons" in "sufficient detail" to indicate why Morgan believed the credit reporting was in error.

35(h)(i)(1).26 12 C.F.R. § 1024.35(h)(i)(2).27 12 U.S.C. §§ 2605(f) and 2614.28 12 U.S.C. §§ 2605(f)(1) and (3).29 12 U.S.C. §§ 2605(f)(2) and (3).

1.Under RESPA, a federal statute, a mortgage loan servicer has a duty to respond to a borrower's qualified written request (QWR). 12 U.S.C. § 2605(e). When a loan servicer fails to adequately respond to the borrower's QWR, the borrower is entitled to "any actual damages" the borrower incurs as a result of the failure.

RESPA creates a cause of action but says only “borrower[s]” can use it. 12 U.S.C. § 2605(f). Accordingly, the Sixth Circuit joins the Fifth and Eleventh Circuits in holding that to have a cause of action under RESPA, a plaintiff must not only sign the mortgage, but also the loan.

To sue under RESPA, one must have signed the loan, not just the mortgage.RESPA creates a cause of action but says only “borrower[s]” can use it. 12 U.S.C. § 2605(f). Accordingly, the Sixth Circuit joins the Fifth and Eleventh Circuits in holding that to have a cause of action under RESPA, a plaintiff must not only sign the mortgage, but also the loan.

RESPA provides that “a servicer of a federally related mortgage shall not … fail to comply with any other obligation found by the Bureau of Consumer Financial Protection, by regulation, to be appropriate to carry out the consumer protection purposes of this chapter.” 12 U. S. C. § 2605(k)(1)(E).Third, because only servicers can fail to comply with 12 U. S. C. § 2605(k)(1)(E), only servicers can be liable to the borrower for those failures.The Fifth Circuit concluded: “The text of this statute plainly and unambiguously shields Bank of America from any liability created by the alleged RESPA violation of its loan servicer.”

RESPA provides that “a servicer of a federally related mortgage shall not … fail to comply with any other obligation found by the Bureau of Consumer Financial Protection, by regulation, to be appropriate to carry out the consumer protection purposes of this chapter.” 12 U. S. C. § 2605(k)(1)(E).Third, because only servicers can fail to comply with 12 U. S. C. § 2605(k)(1)(E), only servicers can be liable to the borrower for those failures.The Fifth Circuit concluded: “The text of this statute plainly and unambiguously shields Bank of America from any liability created by the alleged RESPA violation of its loan servicer.”