Guide
How Do You File a Complaint Against Your Mortgage Servicer?
You file a complaint against your mortgage servicer by sending a written notice of error first. If the servicer does not fix the problem, you file with the CFPB or your state regulator. Servicers must acknowledge a notice of error within 5 business days and usually resolve it within 30 business days.
A mortgage servicer is the company that collects your payments, handles escrow and reviews you for help if you fall behind. It is often not the company that owns the loan. Servicers make mistakes, such as misapplying payments, losing documents or moving toward a foreclosure while your help application is under review. Federal rules give you a formal way to make them answer. The general foreclosure options are on the main page about how to stop foreclosure.
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What Problems Can You Complain About?
You can complain about almost any mistake in how your loan is handled, including payment, escrow, fee and foreclosure errors. The CFPB’s rule on error resolution lists the covered errors (12 CFR 1024.35(b)).
| Problem | Example |
|---|---|
| Payment not credited | A payment was received but not applied to your account |
| Wrong fees | Charges you did not owe or that your loan does not allow |
| Escrow errors | Taxes or insurance not paid on time from your escrow account |
| Wrong payoff amount | A payoff statement with the wrong total |
| Foreclosure during review | A sale or filing while a complete application was pending |
| Lost or ignored documents | Repeated requests for papers you already sent |
| Transfer problems | Records not passed to a new servicer |
How Do You Send a Notice of Error?
You send a notice of error by writing to the servicer at the address it designates for errors and requests, stating your name, loan number and what you believe is wrong. Phone calls do not trigger the deadlines, so always put it in writing.
- Find the right address. Your monthly statement or the servicer’s website should list a specific address for notices of error. Letters sent elsewhere may not count.
- Describe the error. Say what happened, when, and what you want corrected.
- Attach proof. Include copies, not originals, of bank records, letters or receipts.
- Send it so you can track it. Use certified mail with a return receipt.
- Mark your calendar. Note the dates the servicer’s responses are due.
To get information instead of fixing an error, such as the name of the loan’s owner or your payment history, send a request for information under 12 CFR 1024.36. The servicer must answer most requests within 30 business days.
What Deadlines Must the Servicer Meet?
The servicer must acknowledge your notice of error within 5 business days and then either fix the error or explain in writing why it found no error. The deadline to finish depends on the type of error (12 CFR 1024.35(e)):
- Payoff statement errors: within 7 business days.
- Certain foreclosure errors: before the foreclosure sale or within 30 business days, whichever is earlier.
- All other errors: within 30 business days, which the servicer can extend once by 15 business days if it tells you why.
While it is looking into a payment error, the servicer generally cannot report the disputed payment as late to the credit bureaus for 60 days. If it finds no error, you can ask for the documents it relied on. The deadlines around help applications are explained in loss mitigation deadlines.
How Do You File a CFPB Complaint?
You file a CFPB complaint online or by phone, describing what happened and what you want the company to do. The CFPB’s complaint portal sends your complaint to the servicer, which generally responds within 15 days, and you can track it and give feedback on the answer.
Filing is free and does not require a lawyer. Include your loan number, dates, copies of your notice of error and the servicer’s reply. Many people also file with their state’s banking or financial regulator and attorney general, especially if the servicer is licensed in the state. A complaint does not stop a foreclosure by itself, so keep applying for help and get legal advice if a sale is close.
When Should You Get a Lawyer?
You should get a lawyer when the servicer’s error has led to a foreclosure filing or sale date, or when it ignores your notice of error. Borrowers can sue for many violations of the federal servicing rules, and a lawyer can use the servicer’s mistakes to pause a case or negotiate. Common legal arguments are covered in foreclosure defenses.
Example
The following is a fictional example. Hana sent her complete modification application 75 days before a scheduled sale. Three weeks later, the servicer’s lawyer filed for an order of sale anyway, and the servicer’s phone staff could not explain why.
Hana sent a notice of error to the servicer’s designated address, citing the dual tracking rule, with her application receipt attached. She also filed a CFPB complaint. Within a week, the servicer acknowledged the error, withdrew the motion and sent her a decision on her application.
FAQ
What Is a Qualified Written Request?
A qualified written request is the older name for a written letter to your servicer asking for information or pointing out an error. Under current rules these are called a request for information and a notice of error, and both carry deadlines for the servicer.
How Long Does a Servicer Have to Respond to a Notice of Error?
It must acknowledge your notice within 5 business days and usually resolve it within 30 business days. Payoff statement errors must be fixed within 7 business days, and some foreclosure errors must be resolved before the sale.
Does a CFPB Complaint Cost Anything?
No. Filing a complaint with the CFPB is free and can be done online or by phone. The CFPB sends it to the company and tracks the response.
Can You Sue Your Servicer?
Yes, federal law lets borrowers sue for many servicing rule violations, and some state laws add more rights. A lawyer can tell you whether your case is worth bringing and what you could recover.
Sources
- 12 CFR 1024.35 Error Resolution Procedures. Electronic Code of Federal Regulations. https://www.ecfr.gov/current/title-12/section-1024.35
- 12 CFR 1024.36 Requests for Information. Electronic Code of Federal Regulations. https://www.ecfr.gov/current/title-12/section-1024.36
- Submit a Complaint. Consumer Financial Protection Bureau. https://www.consumerfinance.gov/complaint/
This page explains the general process and is not legal advice. Rules change and courts interpret them, so confirm with a real-estate attorney in your state before acting.