1. Presents:QWR Defined

2. Presents:QWR DefinedQWR or qualified written request it wascreated because various companiesassociated with the buying andselling of real estate, such as lenders, realestate agents, constructioncompanies and title insurance companieswere often engaging in providingundisclosed kickbacks to each other, inflatingthe costs of real estatetransactions and obscuring price competitionby facilitating bait-and-switchtactics. 3. Presents: QWR DefinedFor example, a lender advertising ahome loan might have advertised theloan with a 5% interest rate, but thenwhen one applies for the loan one istoldthat one must use the lendersaffiliated title insurance company andpay $5,000for the service, whereas the normalrate is $1,000. The title companywould thenhave paid $4,000 to the lender. Thiswas made illegal. 4. Presents: QWR DefinedThe reason is to make prices for the services clear so as toallow price competition by consumer demand and to therebydrive down prices.The Act prohibits kickbacks between lenders and third-partysettlement service agents in the real estate settlement process(Section 8 of RESPA). Even reciprocal referrals among thesetypes of professions could be construed in court as a violationof the law of RESPA. It requires lenders to provide a goodfaith estimate for all the approximate costs of a particular loanand finally a HUD-1 (for purchase real estate loans) or a HUD-1A (for refinances of real estate loans) at the closing of the realestate loan. 5. Presents:QWR DefinedThe final HUD-1 or HUD-1A allows the borrower to knowspecifically the costs of the loan and to whom the fees arebeing allotted. Beginning January 1, 2010, amendmentsto RESPA restrict the amount that fees can increasebetween the GFE and HUD-1 or HUD-1A. Originationcharges are not allowed to increase, while certain thirdparty service providers fees can increase by no morethan 10%.If the borrower believes there is an error in the mortgageaccount, he or she canmake a "qualified written request" to the loan servicer.The request must be inwriting, identify the borrower by name and account, andinclude a statement ofreasons why the borrower believes the account is in error. 6. Presents:QWR DefinedThe request should include the words"qualified written request". It cannot bewritten on the payment coupon, but mustbe on a separate piece of paper. TheDepartment of Housing and UrbanDevelopment provides a sample letter. Theservicer must acknowledge receipt of therequest within five business days. Theservicer then has 30 business days (fromthe request) to take action on the request.The servicer has to either provide a writtennotification that the error has beencorrected, or provide a written explanationas to why the servicer believes theaccount is correct. 7. Presents: QWR DefinedEither way, the servicer has to provide thename and telephone number of a person withwhom the borrower can discuss the matter.The servicer cannot provide information to anycredit agency regarding anyoverdue payment during the 60 day period. Ifthe servicer fails to comply with the "qualifiedwritten request", the borrower is entitled toactual damages, up to$2,000 of additional damages if there is apattern of noncompliance, costs andattorneys fees. 8. For more information on qualified writtenrequests. Log on to QWR Attack! Right now. 9. Presents:QWR Defined 10. Presents:QWR Defined