Techoclaro
All rights
Step 4Your planKnow your rights18 rights

Dealing with your mortgage servicer

Errors, information requests, payments and statements.

Federal law

Federal lawVerified Sep 23, 2026

No discrimination in housing or home loans (Fair Housing Act)

42 U.S.C. § 3604(a)–(b)

It is illegal to discriminate in selling, renting, or financing a home because of race, color, religion, sex, disability, familial status (having children), or national origin. This covers mortgage lenders and servicers too — for example, in who gets offered a loan modification and on what terms. You can file a complaint with HUD within 1 year or go to court within 2 years.

Read this right
Federal lawVerified Sep 23, 2026

Dispute errors on your credit report

15 U.S.C. § 1681i(a)(1)(A)

If your credit report has something wrong or incomplete — like a payment reported late that you made on time — you can dispute it with the credit bureau for free. The bureau must investigate, usually within 30 days, and fix or delete information it cannot verify.

Read this right
Federal lawVerified Sep 23, 2026

Make the company that reported the error investigate it

15 U.S.C. § 1681s-2(b)(1)

The company that reported the information — such as your servicer — must investigate when a credit bureau passes along your dispute, and fix what is wrong with every bureau. In many cases you can also dispute directly with that company, which must then investigate and report back to you.

Read this right
Federal lawVerified Sep 23, 2026

Cancel private mortgage insurance (PMI) when you have enough equity

12 U.S.C. § 4902(a)

If you pay private mortgage insurance on a loan for your main home, you can ask in writing to cancel it once your balance reaches 80% of the home's original value, if you have a good payment history and are current. It must end automatically when your balance is scheduled to reach 78%, if you are current.

Read this right
Federal lawVerified Sep 23, 2026

Notice when your loan moves to a new servicer

12 U.S.C. § 2605(b)–(d)

When the company that collects your payments changes, both the old and new servicer must tell you in writing. The old one must usually tell you at least 15 days before the switch; the new one within 15 days after. For 60 days after the switch, a payment you send on time to the old servicer cannot be treated as late.

Read this right
Federal lawVerified Sep 23, 2026

Interest capped at 6% on debts from before service

50 U.S.C. § 3937(a)(1)

If you (or you and your spouse together) owed a debt before you entered military service, the interest rate is capped at 6% per year while you serve. For a mortgage, the cap lasts during service and for 1 year after. Interest above 6% is forgiven, not just delayed. You must send the creditor written notice and a copy of your orders.

Read this right
Federal lawVerified Sep 23, 2026

Notice when a new company becomes owner of your loan

15 U.S.C. § 1641(g)

When your mortgage loan is sold or assigned to a new owner, the new owner must tell you in writing within 30 days. The notice must include who the new owner is, how to reach it, the date of transfer, and where the transfer is recorded.

Read this right
Federal lawVerified Sep 23, 2026

The right to cancel some home-secured loans (rescission)

15 U.S.C. § 1635(a)

For some loans that put a lien on the home you live in — like many home-equity loans or refinances with a new lender — you can cancel within 3 business days after closing. If the lender did not give you the required notices and disclosures, that time can stretch up to 3 years. You cancel by sending the lender written notice.

Read this right
Federal regulationVerified Sep 23, 2026

Rights when you inherit or receive a home with a mortgage

12 C.F.R. § 1024.36(i)

If you got an ownership interest in a home from a family member — for example after a death or divorce — you can ask the servicer to confirm you as a "successor in interest." The servicer must tell you in writing what documents it needs. Once confirmed, you are treated as a borrower for servicing rules, so you can get information and apply for help.

Read this right
Federal regulationVerified Sep 23, 2026

A servicer team assigned to you

12 C.F.R. § 1024.40(a)

By the 45th day after you fall behind, your servicer must assign staff to help you. Those people must be reachable by phone and must be able to tell you your options, what documents are missing, the status of your application, and the deadlines that apply.

Read this right
Federal regulationVerified Sep 23, 2026

Early contact and help information when you fall behind

12 C.F.R. § 1024.39(a)

When you miss a mortgage payment, your servicer must try to reach you live (by phone or in person) by the 36th day of the delinquency and tell you about options to avoid foreclosure. By the 45th day it must send you a written notice explaining loss-mitigation options and how to get help, including housing counselors.

Read this right
Federal regulationVerified Sep 23, 2026

Make your servicer fix mistakes (notice of error)

12 C.F.R. § 1024.35(a)

If your mortgage servicer made a mistake — like not crediting a payment, charging a wrong fee, or giving a wrong payoff amount — you can send a written "notice of error." The servicer must confirm it got your letter within 5 business days. It then has to fix the error or explain in writing, after a reasonable investigation, why it thinks there was no error, usually within 30 business days.

Read this right
Federal regulationVerified Sep 23, 2026

Fair handling of your escrow account

12 C.F.R. § 1024.17(c)(1)

If your servicer collects money for taxes and insurance (escrow), it must pay those bills on time as long as you are not more than 30 days behind. It must review the account every year and send you a statement. It cannot keep more than a small cushion (one-sixth of a year's payments), and it must refund a surplus of $50 or more within 30 days of the review. When you pay off the loan, it must return what is left within 20 business days.

Read this right
Federal regulationVerified Sep 23, 2026

Protection from surprise "force-placed" insurance charges

12 C.F.R. § 1024.37(b)

If your servicer thinks your homeowner's insurance lapsed, it cannot just buy expensive insurance and charge you. It must send you a first notice at least 45 days before charging, and a reminder at least 15 days before charging. If you show you had insurance, it must cancel the forced policy and refund the overlap within 15 days.

Read this right
Federal regulationVerified Sep 23, 2026

Get information from your servicer (request for information)

12 C.F.R. § 1024.36(a)

You can ask your servicer in writing for information about your loan — for example your payment history, who owns your loan, or how your escrow was figured. The servicer must confirm it got your request within 5 business days and answer within 30 business days. If you ask who owns your loan, it must tell you within 10 business days.

Read this right
Federal regulationVerified Sep 23, 2026

An accurate payoff amount within 7 business days

12 C.F.R. § 1026.36(c)(3)

If you ask in writing how much it would take to pay off your mortgage, the lender or servicer must send you an accurate payoff statement within a reasonable time — no more than 7 business days. You need this to refinance, sell, or plan a way to save your home.

Read this right
Federal regulationVerified Sep 23, 2026

A clear mortgage statement every billing cycle

12 C.F.R. § 1026.41(a)(2)

Your servicer must send you a statement for each billing cycle (usually monthly). It must show the amount due and due date, how your last payments were applied, fees charged, and contact information. If you are behind, it must also show how far behind you are and where to get housing counseling.

Read this right
Federal regulationVerified Sep 23, 2026

Your payment must be credited the day it arrives

12 C.F.R. § 1026.36(c)(1)(i)

When your servicer gets a full monthly payment (principal, interest and escrow), it must credit it to your loan as of the day it is received. It cannot hold your payment and then charge you a late fee or report you late because of its own delay.

Read this right