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Freedom Mortgage Rejects Requests for Recordings RESPA Class Action

It’s a problem for a borrower if their mortgage servicer doesn’t respond to questions about their mortgage account. That’s why the Real Estate Settlement Procedures Act (RESPA) requires that they do so. But the complaint for this class action alleges that Freedom Mortgage Corporation does not comply with the law, because they do not provide copies of recorded calls between Freedom and borrower—something the complaint alleges servicers been specifically told to provide.

RESPA was intended to protect consumers by enabling them to obtain “greater and more timely information” about mortgage settlement and to ensure that settlement costs are not unnecessarily high. Regulations have been set forth about what mortgage servicers are required to do in response to qualified written requests (QWRs) from borrowers.

QWRs come in two types. They can be either a Request for Information (RFI) or a Notice of Error (NOE). The regulations govern how quickly a mortgage servicer must respond and what the servicer must do in response.

The complaint says that “a servicer must respond to an RFI by: (1) providing the requested information; or (2) conducting a ‘reasonable search’ for the requested information, providing the borrower with a written notification explaining the basis for the servicer’s determination that the requested information is ‘not available.’”

The Consumer Financial Protection Bureau (CPFB) periodically revises the rules for Regulation X, RESPA’s implementing regulation.

In its commentary on Regulation X, the CPFB gives an example of when information is “available,” when a borrower asks for a copy of a telephone call with the servicer: “The servicer’s personnel have access in the ordinary course of business to audio recording files with organized recordings or transcripts of borrower telephone calls and can identify the communication referred to by the borrower through reasonable business efforts. The information requested by the borrower is available to the servicer.”

Both of the plaintiffs in this case—Sherry Hogan and Daniel Altman—requested copies of recordings of calls with Freedom. In both cases, Freedom’s response was late. Also, in both cases, the responses provided some information and documentation but no recording files.

As to the recording files, Freedom claimed it was “not required to request for information irrelevant to a borrower’s loan or to requests that seek confidential, privileged, or proprietary information. In addition, a servicer is not required to provide information or documentation that is not in the servicer’s control or possession or that cannot be retrieved in the ordinary course of business through reasonable efforts.”

The class for this action is all persons in the US who have or had a mortgage with Freedom Mortgage and who, between May 3, 2018 and May 3, 2021, requested copies of audio recordings or transcripts of phone calls between themselves and freedom pursuant to Regulation X and to whom Freedom has denied access to those recordings.

Article Type: Lawsuit
Topic: Loans

Most Recent Case Event

Freedom Mortgage Rejects Requests for Recording RESPA Complaint

May 3, 2021

It’s a problem for a borrower if their mortgage servicer doesn’t respond to questions about their mortgage account. That’s why the Real Estate Settlement Procedures Act (RESPA) requires that they do so. But the complaint for this class action alleges that Freedom Mortgage Corporation does not comply with the law, because they do not provide copies of recorded calls between Freedom and borrower—something the complaint alleges servicers been specifically told to provide.

Freedom Mortgage Rejects Requests for Recording RESPA Complaint

Case Event History

Freedom Mortgage Rejects Requests for Recording RESPA Complaint

May 3, 2021

It’s a problem for a borrower if their mortgage servicer doesn’t respond to questions about their mortgage account. That’s why the Real Estate Settlement Procedures Act (RESPA) requires that they do so. But the complaint for this class action alleges that Freedom Mortgage Corporation does not comply with the law, because they do not provide copies of recorded calls between Freedom and borrower—something the complaint alleges servicers been specifically told to provide.

Freedom Mortgage Rejects Requests for Recording RESPA Complaint
Tags: Mortgage-Related Unfair Practices, RESPA, Servicing Your Mortgage