Sample Combined "Violations Notification and Qualified Written Request" Letter
This letter has been edited to protect the clients name and certain proprietary information that is used by the author.
This letter notifies the Lender that they are in violation of several provisions of Consumer Protection Act and the Real-Estate Procedures Settlement Act and, puts them "on notice"
"As a result of Lender’s aforesaid violations, Lender is liable to Borrower in an amount not less than $200.00 and up to $2,000.00 for each and every violation and clear title to property with fixtures in fee simple as a result of the aforementioned all with damages. The credit transaction is also rescindable."
In this case there are 31 violations which means the amount of violations fines that may be available to the homeowner would be $62,000.00
Please read on.......
Example Violations Letter:
LOAN NUMBER: xxxxxxxxx
To: Homecomings Financial
P. O. Box 78426
Phoenix, AZ 85062-8426
Re: (street address)
Chester, IL 62233
Dear Sir or Madam,
After seeking advice of council, it has come to my attention that you are in violation of several provisions of the Consumer Protection Act and the Real-estate Procedures Settlement Act all at 15 USC §1601 et seq. and 12 USC §2601 et seq. as more fully set out below.
The year of my loan is June 2, 2003 and is not beyond the statue of limitations thereof.
I received no signed documents at time of closing or within a reasonable amount of time of signing.
Lender failed to give to the Borrowers signed copies (Borrower and Lender) of the complete loan transaction, as required by 15 USC §1601 et seq. within a reasonable amount of time or never during the entire period of the loan agreement.
Loan appears to be an “Alternative Mortgage” as defined by 12 USC §3801, 3802, 3803 et seq. Provide proof, per Borrower’s income and credit history at time of loan origination, that Borrower could only qualify for an “Alternative Mortgage” and that this Loan meets the definition of per above and applicable Federal Regulations governing such loans.
The Lender did not acquire a UCC-1 Lien on the property as required by revised Article 9. The Borrower must sign the UCC-1 papers for the Original Loan and each time the NOTE is sold. The Borrower must sign again for each new assignee.
The Borrower did not sign papers acknowledging receipt of Notice of the UCC-1 Lien.
The disclosures made in relation to the consumer credit transaction were not presented in the manner required by law. The disclosures were not grouped together and were not segregated from everything else as required by Title 12 Code of Federal Regulations, (reference Federal Code/Regulation)
There were no interest disclosures provided as required by ......(reference Federal Code/Regulation)
Lender failed to give to the borrowers the required 3 day cool off period as required by Regulation Z, Part ....(reference Federal Code/Regulation).
There was no Good Faith estimate given as required by 12 Code of Federal Regulation, §226.18©, 12 USC §2601 et seq. and ....
The finance charge, using that term, and a brief description as to the dollar amount the credit will cost the Borrower was not given, as required by .....
Lender failed to disclose the amount of its “finance charge” because no disclosure statements were given, using the term “finance charge”...(reference Federal Code/Regulation)
There was not contained in the loan documents a disclosure of the total sales price....(reference Federal Code/Regulation)
There was no separate disclosure given for the prepayment penalty as required by....(reference Federal Code/Regulation)
The Borrower was not given the option....(reference Federal Code/Regulation)
There was not statements that the consumer should refer to the appropriate contract document and clause for information about nonpayment, default, the right to..... Federal Regulation, §xxx.xx(p).
There was no TIL disclosure given as required by.... Title 12 Code of Federal Regulations §xxx.xx and .........(reference Federal Code/Regulation)
The two required statements under 15 USC §1639(a)(1)(A) and (B) are completely missing.
The required disclosure statements are completely missing under 15 USC §xxx.xx......and Regulation Z, Part xxx.xx et seq.
Lender failed to disclose in or with the disclosure statements, because no disclosure statements were given, the amount of the balance to which the rate was applied and an explanation of how that balance was determined. Lender further failed to disclose the fact that the balance is determined by first deducting all credits and payments made as required by Title.....(reference Federal Code/Regulation)
Lender has failed to use the proper forms, approved by the Federal Reserve Board, as required by Regulation Z, Part 226 et seq. and the forms used do not display OMB numbers.
Lender failed to give all the required sentences in the unsigned loan documents as required by 15 USC §1601 et seq. and Regulation Z, Part 226 et seq.
The Lender failed to disclose to the Borrower that the finance fee, if adjusted to maximum allowed by the Note, would be usury as required by Regulation ......(reference Federal Code/Regulation)
Lender failed to disclose that the margin added to the index exceeded the amount allowed by 15 USC §1602 et seq.
Lender failed to disclose that the detention of any money over the disclosed amount would amount to usury as required by Title 12 Code of Federal Regulations §226 et seq.
There was no NOTICE of the Right to Rescind in the case of usury in the transaction as required by Title 12 Code of Federal Regulations §226.23.
There was no FORM for rescinding the contract in the event of usury as required by Title 12 Code of Federal Regulations §226.23(b)(1).
Lender failed to disclose to the Borrowers that the settlement fees could not be a part of the amount financed as required by Regulation ....
There were no preliminary disclosures given as required by 15 USC §1601 et seq., Regulation .....
Lender has failed to make the disclosures required by 15 USC §1601 et seq. and Title 12 Code of Federal Regulation, §226.18, clearly and conspicuously in writing, in a form that Borrowers could keep as required by 15 USC §1601 et seq. and Title 12 Code of Federal Regulation, .......(reference Federal Code/Regulation)
Have, you the creditor, kept evidence of compliance with Regulation Z and the regulation disclosure requirements for a period of 2 years as required by Title 12 (reference Federal Code/Regulation)
Have, you the creditor, provided all required disclosures to Borrower when the note was sold, assigned or servicing transferred as required by Regulation Z.
As a proximate result of the foregoing, the Borrower herein has the right to rescind the entire transaction and have the title to such property restored to it’s original condition.
Because of this and other reasons that lead me to believe that I may be a victim of predatory lending. I am disputing the validity of the current debt you claim I owe. By debt I am referring to the principal balance claimed owed, my calculated monthly payment, calculated escrow payment and any fees claimed to be owed by you or any trust or entity you may represent.
To independently validate my debt, I need to conduct a complete exam, audit, review and accounting of my mortgage loan from its inception through the present date. Upon receipt of this letter, please refrain from reporting any negative credit information [if any] to any credit reporting agency until you respond to each of my requests.
I also request that you kindly conduct your own investigation and audit of my account since it inception to validate the debt you currently claim I owe. I would like you to validate this debt so that it is accurate to the penny!
Please do not rely on previous servicers or originators records, assurances or indemnity agreements and refuse to conduct a full audit and investigation of my account.
I understand the potential abuses by you or a previous servicer could have deceptively, wrongfully, unlawfully and/or illegally:
Increased the amounts of my monthly payments,
Increased the principal I owe,
Increased by escrow payments,
Increased the amounts applied and attributed toward interest on my account,
Decreased the proper amounts applied and attributed toward principal on my account and/or assessed, charged and/or collected fees, expenses and miscellaneous charges I am not legally obligated to pay under my mortgage, note and/or deed of trust.
I want to insure you that I have not been a victim of such predatory practices.
To insure this, I have authorized a thorough review, examination, accounting and audit of my mortgage loan, #xxxxxxxxx, by mortgage auditing and predatory lending experts. This exam and audit will review my mortgage loan file from the date of my initial contact, application and origination to the present date written above.
As such, please treat this letter as a Qualified Written Request (QWR) under the Real Estate Settlement Procedures Act, codified as Title 12 §2605(e)(1)(B)(e) and Regulation X §3500.21(f)(2) of the United States Code as well as a request under Truth In Lending Act [TILA] 15 USC §1601 et seq. RESPA provides substantial penalties and fines for non-compliance or failure to answer my questions provided in the attachment to this letter within sixty (60) days of its receipt.
Please provide me with the documents I am requesting and a detailed answer to each within the required lawful time frame. Upon receipt of the documents and answers, an exam and audit will be conducted that may lead to further document request and answers to questions under an additional QWR letter.
Copies of this Qualified Written Request, Validation of Debt, TILA and request for accounting and legal records, Dispute of Debt letter are being sent to FTC, HUD, all relevant state and federal agencies, other consumer advocates and my congressman/senator.
It is my hope that you can answer my questions, validate and document my debt to the penny and correct any abuses or schemes uncovered.
Since this letter and before, you as the Lender, has continued and so continue, to violate Title 15 United States Code, Section 1601 et seq., Regulation Z, Title 12 Code of Federal Regulation, Part 226, 12 USC §2601 et seq., 12 Code of Federal Regulations, part 3500 and 31 USC §1901 which was adopted pursuant to the Consumer Protection Act by failing to properly make disclosures.
As a result of Lender’s aforesaid violations, Lender is liable to Borrower in an amount not less tha$200.00 and up to $2,000.00 for each and every violation and clear title to property with fixtures in fee simple as a result of the aforementioned all with damages. The credit transaction is also rescindable.
Dated the ______, of __________________, 2004
Attachment: Questions to be answered and documents to be provided per this Qualified Written Request and Validation of Debt.
Copyright © 2005 [David Allen]. All rights reserved.
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