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» VISIT US ONLINE @ DSNEWS.COM 57 correspondence are considered a formal dispute or complaint and, once formally put in writing, are characterized by federal regulators as a qualified written request (QWR). QUALIFIED WRITTEN REQUESTS (QWRS) CFPB regulations have defined certain inquiries, requests for information, and homeowner claims that loan servicers have committed errors or complaints are classified as QWRs or covered errors. A QWR is written correspondence that is sent to the servicer from homeowner, or someone acting on his/her behalf, to ask for information relating to the servicing of a loan, to dispute errors that have been made to a homeowner's loan account, or to make a complaint. Specifically, as outlined in the Dodd-Frank Wall Street Reform and Consumer Protection Act, QWRs may include, but are not limited to, the servicer matters regarding: » Acceptance of conforming payments; » Application or allocation of payments; » Payment of taxes, insurance, or other fees; » Imposition of fees or charges without a reasonable basis; » Disclosure(s) of accurate information regarding loss mitigation options and foreclosure; » Disclosure(s) of final balances for purposes of a loan payoffs; and » Disclosure(s) relating to steps that can be taken by homeowners to avoid foreclosure. QWR – SERVICER RESPONSIBILITIES AND REGULATORY REQUIREMENTS: e following regulatory requirements apply to servicers: » Acknowledge receipt from the homeowner of a QWR no later than five business days after receipt; » Provide homeowners in writing with the information or clarification being requested no later than 30 business days after receipt; » As appropriate, provide homeowners with a written notice of an additional 15-business- day extension no later than the 30-business- day requirement noted above; » As appropriate, inform homeowners that the correction(s) have been made; » As appropriate, inform homeowners why a correction will not be made and that the account information is correct, with appropriate supporting information referenced and/or provided; and » As appropriate, provide to homeowners at no charge copies of documents and information relied upon in making the determination that no error occurred, within 15 business days of receiving the homeowner's request for such documents. In certain instances, homeowners may choose to direct or copy their correspondence describing the nature of the error(s) or complaint(s) to the president or CEO of the servicer or to a specific regulatory agency. Such homeowner correspondence is commonly referred to as a "presidential complaint." Servicers across the industry generally have a dedicated unit assigned for handling these items. QWR – HOMEOWNER RESPONSIBILITIES: QWRs must not be written on the monthly mortgage statement or monthly coupon book, but instead be summarized in a separate document. QWRs must contain: (i) a statement of the homeowner's reason(s) that their servicer has made an error (and the nature of the error and/ or complaint) with respect to the loan in question or (ii) a detailed explanation of other information being requested. (A sample QWR can be found on U.S. Department of Urban Housing and Development's (HUD)'s website. In addition, homeowners may file complaints online at Help.ConsumerFinance.Gov. QWR – Homeowner Transmission Responsibilities: QWRs sent by homeowners to servicers should: » Be sent via certified mail, return receipt requested; » Be sent to the appropriate address (the proper address may be different from where payments are sent or may be different from the customer service address); and » Contain the words: "is is a 'Qualified Written Request' in accordance with Section 6 of the Real Estate Settlement Procedures Act (RESPA)." In all cases, the servicer's written response in addition to details relating to the error, dispute, or complaint received must include the name and telephone number of the individual, office(s), or department(s) that can provide homeowners with additional assistance that may be requested or answer any questions. Homeowners should continue making their monthly payments while awaiting a formal response from the servicer. SOCIAL MEDIA e CFPB and other regulatory bodies are encouraging servicers to proactively and consistently review social media and related websites to identify homeowner comments and potential issues made regarding the servicer's operation and the handling of inquiries. To the extent servicers uncover comments on a blog or through other social media outlets where the author can be identified either through self- contact information provided on the internet site or through a specific homeowner name/loan number reference made, the appropriate party should be encouraged to contact the servicer directly and (as applicable) submit a QWR in line with proper protocols. Servicers should not utilize social media forums or blogs to respond or offer rebuttals to specific issues that have been raised. Servicers may consider making a general statement on the applicable social media forum (or blog) that includes: (i) an acknowledgment that the servicer has seen the comment, (ii) a statement saying that the servicer takes such matters very seriously, (iii) a request asking that the author(s) contact the servicer directly at a specified telephone number to further discuss, and (iv) as appropriate, a statement saying that homeowners should avail themselves to the QWR process. On an increasing basis, servicers across the industry are expanding the responsibilities of CSRs to include the addition of social media surveillance. Furthermore, servicers across the industry are conducting customer surveys on a periodic basis either annually or every other year in order to obtain homeowner feedback and attain service/process improvement suggestions. At the present time, specific federal CFPB regulatory guidelines and standards do not exist over social media surveillance and the performance of periodic customer surveys. Instead, the above noted protocols are consistent with normal and usual practices that are being increasingly adopted by servicers across the industry. Servicers should have a dedicated and independent servicing oversight/surveillance unit to periodically review the customer service function. Alternatively, servicers may choose to engage the services of a third-party vendor to provide surveillance and monitoring, accordingly. Metrics and KPIs are critical to measuring and monitoring customer service performance, and random call listening is an excellent means of monitoring staff. Either way, servicers are encouraged to periodically ensure positive homeowner perceptions and opinions are consistently maintained in order to create a high level of trust and comfort that will strengthen collaboration with homeowners relating to debt collection and loss mitigation activities that may occur at a later point in time. Embracing consistent and superior customer service is a critical differentiating factor for loan servicers. COVE R STORY INDUSTRY INSIGHT POINT- COUNTERPOINT M ARKET PUL SE

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