Federal Mortgage LawsQuestion 80 of 400
A borrower sends her servicer a written notice claiming a payment was misapplied. Under Reg X error-resolution rules, within how many business days must the servicer acknowledge receipt of the notice of error?
a.Within 2 business days
b.Within 3 business days
c.Within 5 business days
d.Within 15 business days
Explanation
Under RESPA's Regulation X, a servicer must provide a written acknowledgment of a notice of error within 5 business days of receiving it. The servicer must then investigate and respond, generally within 30 business days (extendable by 15 business days in some cases). These timelines protect borrowers from unresolved servicing errors.
Law Reference: Real Estate Settlement Procedures Act (Reg X servicing rules)Practice all 400 questions free — no signup required.
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