N.Y. Comp. Codes R. & Regs. tit. 3 § 419.6

Current through Register Vol. 46, No. 43, October 23, 2024

Section 419.6 - Borrower complaints and inquiries

(a) Servicers shall establish and maintain:

(1) procedures and systems to respond to and resolve borrower complaints and inquiries in accordance with the requirements of this Part;

(2) a customer service department staffed by trained personnel to whom borrowers may direct complaints and inquiries; and

(3) a toll-free telephone number or collect calling service that enables borrowers to speak with a living person, during regular business hours, trained to answer inquiries and instruct borrowers on how to file written complaints.

(b) Every welcome packet and periodic statement, including as applicable either the monthly mortgage statement or annual coupon book, and annual statement pursuant to section 419.5(a) of this Part that is provided to a borrower, and any website maintained by the servicer, shall clearly and conspicuously state:

(1) an address to which borrowers can direct complaints and inquiries;

(2) the toll-free telephone number or collect calling services provided by the servicer;

(3) whether the servicer is registered with the superintendent;

(4) that the borrower may file complaints and obtain further information about the servicer by contacting the New York State Department of Financial Services Consumer Assistance Unit at 1-800-342-3736 or by visiting the department's website at www.dfs.ny.gov.

(c) Within 10 days of receiving a request in writing from a borrower, a servicer shall provide the borrower with the name, address, phone number or email address, if available, and other relevant contact information for the mortgagee and the holder of the promissory note executed by the borrower.

(d) In addition to the information required to be disclosed under this section, a servicer may, at its option, provide any other information regarding the servicing of the loan that it believes would be helpful to a borrower, provided that such additional information does not contradict or obscure the required disclosures.

(e)Borrower complaints.

A servicer shall comply with the requirements of this section for any written complaint, including those transmitted electronically, from a borrower that includes the name of the borrower, information that enables the servicer to identify the borrower's mortgage loan account, and the nature of the borrower's complaint.

(1) Acknowledgement of complaint. Within five business days of receiving a complaint from a borrower, the servicer shall provide to the borrower a written response that:

(i) acknowledges receipt of the borrower's complaint;

(ii) informs the borrower of any additional information or documentation required by the servicer to review and address the complaint; and, if applicable;

(iii) informs the borrower that the complaint has been reassigned to the borrower's single point of contact or escalated to a supervisor.

(2) A servicer may request supporting documentation from a borrower in connection with the investigation of a complaint, but may not:

(i) require a borrower to provide such information as a condition of investigating a complaint; or

(ii) determine that no error occurred because the borrower failed to provide any requested information without conducting a reasonable investigation pursuant to paragraph (3) of this subdivision.

(3) Response to complaint.

(i) Upon receiving a borrower complaint, a servicer must conduct a reasonable investigation and either:

(a) correct any error or other servicing-related issue identified and provide the borrower with a written notification of the correction, the effective date of the correction, and contact information, including a telephone number, for further assistance; or

(b) if the servicer has determined that no error occurred or that no action is warranted to correct a servicing-related issue, inform the borrower, in writing, of the results of the servicer's investigation and provide a statement of the reason or reasons for this determination, a statement of the borrower's right to request documents relied upon by the servicer in reaching its determination, information regarding how the borrower can request such documents, and contact information, including a telephone number, for further assistance.

(ii) Time limits.

(a) In general. A servicer shall comply with the requirements of subparagraph (i) of this paragraph:

(1) not later than seven business days after the servicer receives a complaint relating to the servicer's failure to provide an accurate payoff balance amount in violation of section 419.5(d) of this Part;

(2) prior to the date of a scheduled foreclosure sale or within 15 business days after the servicer receives the complaint, whichever is earlier, for complaints relating to:

(i) the commencement of a residential foreclosure action against the borrower in violation of section 419.10(a)(4) of this Part; or

(ii) moving for a foreclosure judgment or order of sale, or conducting a foreclosure sale in violation of section 419.10(a)(5) of this Part.

(3) for all other complaints, not later than 30 business days after the servicer receives the complaint.

(b) Extension of time limit. For complaints governed by the time limit in subclause (a)(3) of this subparagraph, a servicer may extend the time period for responding by an additional 7 business days if, before the end of the 30-day period, the servicer notifies the borrower of the extension and the reasons for the extensions in writing. A servicer may not extend the time period for responding to complaints set forth in subclause (a)(1) or (2) of this subparagraph.

(iii) If the servicer has determined that no error occurred or that no action is warranted to correct a servicing-related issue, the servicer shall provide a borrower with copies of documents and information relied upon by the servicer in making its determination that no error occurred or that no corrective action is warranted within 15 business days of receiving the borrower's request for such documents. If a servicer withholds documents relied upon because it has determined that such documents constitute confidential, proprietary or privileged information, the servicer must:

(a) notify the borrower of its determination in writing within 15 business days of receipt of the borrower's request for such documents; and

(b) include in such notification a reasonable description of the contents of the each withheld document and the basis for withholding the document.

(4) A servicer shall not charge a fee, or require a borrower to make any payment that may be owed on a borrower's account, as a condition of responding to a complaint or to providing copies of documents and information relied upon by the servicer in determining that no error occurred or no corrective action was needed in response to a complaint.

(5) Supervisory review. A servicer shall have a process that enables borrowers to escalate complaints or pending loss mitigation matters for a supervisory level review.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 419.6

Amended New York State Register December 18, 2019/Volume XLI, Issue 51, eff. 12/18/2019