In a recent blog, we talked about mortgage servicers and what they do after your home loan closes. Let’s look at the law that governs those servicers which is called RESPA.

RESPA, an abbreviation for Real Estate Settlement Procedures Act, is a federal consumer protection law. It makes sure that servicers cannot change or modify the terms of a mortgage. It also are very strict on what servicers can charge for late fees, and servicers are not allowed to charge a servicing fee.

RESPA governs how servicers post payments to your account and when they have to post them. Per RESPA rules, servicers must send or make available a monthly statement to all borrowers. On that statement, they must show the balance for the mortgage loan, the interest rate, when the payment is due, the last payment date, next payment date, and how the payment was dispersed for taxes, insurance, and mortgage insurance.

Under the RESPA rules, servicers must be available to talk to borrowers and handle questions.   They cannot just ignore borrowers and not answer their questions. If you think your servicer is failing in any of these matters or are flat out making mistakes, such as when your payment is posted to your account, just mention the word RESPA and they will come around pretty quickly.

If we can help with any of your mortgage needs or questions, contact the team at Indigo Mortgage Colorado. We’ve been helping homebuyers find the right home loan since 2003.