Consumer complaint received 2025-05-16 00:00:00
Product: Mortgage — VA mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Shellpoint Partners, LLC
State: GA

Complaint narrative:
Ignoring a Qualified Written Request ( QWR ) carries significant legal ramifications for the mortgage servicer, in our case, with XXXX  XXXX XXXX and Shell Point Mortgage Servicing Company. These issues stem from the Real Estate Settlement Procedures Act ( RESPA ) and its implementing regulations ( Regulation X ). This is our breakdown of the legal issues given to us from the XXXX XXXX XXXX monorator XXXX XXXX who drafted our QWR format 1. Violation of RESPA : * Statutory Duty to Respond : RESPA Section 6 ( 12 U.S.C. 2605 ) and Regulation X ( 12 C.F.R. 1024.35 and 1024.36 ) clearly outline the servicer 's obligations upon receiving a QWR. These include acknowledging receipt within five business days and providing a substantive response within 30 business days ( with a possible 15-day extension under specific conditions ). Ignoring the QWR outright is a direct violation of these statutory requirements.

2. Potential for Monetary Penalties and Damages : * Actual Damages : Borrowers who suffer actual harm due to the servicer 's failure to respond to a QWR can sue for damages. This could include financial losses incurred because of the unanswered inquiry, expenses related to trying to resolve the issue, and potentially even damages for emotional distress if directly caused by the servicer 's inaction.

* Statutory Damages : In cases where a pattern or practice of RESPA violations is evident, courts can award statutory damages up to {$2000.00} per violation. While a single instance of ignoring a QWR might not automatically trigger statutory damages, it could contribute to a finding of a pattern or practice if other similar violations occur.

* Costs and Attorney 's Fees : If a borrower is forced to file a lawsuit to compel the servicer to respond to the QWR or to seek damages for the non-response and is successful, the court may order the servicer to pay the borrower 's legal costs and attorney 's fees.

3. Regulatory Scrutiny and Enforcement Actions : * Consumer Financial Protection Bureau ( CFPB ) Enforcement : The CFPB is the primary federal agency responsible for enforcing RESPA. Ignoring a QWR can lead to borrowers filing complaints with the CFPB. If the CFPB finds a pattern of non-compliance or significant harm to consumers, it can initiate investigations, issue fines, and take other enforcement actions against the servicer. 
* State Regulatory Actions : State attorneys general and banking regulators also have consumer protection authority and may take action against servicers that violate RESPA or similar state laws. 
4. Legal Challenges in Foreclosure Proceedings : * Defense to Foreclosure : In your specific situation involving a foreclosure, the failure of XXXX  XXXX XXXX to honor your QWR, particularly one requesting information relevant to the foreclosure process or the validity of the debt, could potentially be used as a defense against the foreclosure. You could argue that the bank failed to provide necessary information that might have helped you understand or challenge the foreclosure. 
* Grounds for Injunction : A court might be willing to issue an injunction to halt or delay foreclosure proceedings until the bank properly responds to the QWR, especially if the information requested is crucial to understanding your rights and options. 
XXXX. Negative Publicity and Reputational Damage : * While not a direct legal issue in terms of monetary penalties, ignoring customer inquiries and legal obligations like QWR responses can lead to negative publicity and damage the servicer 's reputation, potentially impacting their business in the long run. 
In summary, ignoring a QWR is a legally risky action for a mortgage servicer. It can lead to financial liability through lawsuits, regulatory penalties, and potential complications in foreclosure proceedings. It's crucial for servicers to have processes in place to promptly and thoroughly address all QWRs they receive. 
Given that XXXX  XXXX XXXX has now gone beyond the 30-day timeframe, it's highly recommended that you take the steps outlined in the previous response, including sending a follow-up communication, filing a complaint with the CFPB, and consulting with a real estate attorney to understand your legal options.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation