An accurate payoff amount within 7 business days
12 C.F.R. § 1026.36(c)(3)
In plain words
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.
Who is protected
Consumers with a loan secured by their dwelling, and people acting for them.
When it applies
It has no special conditions: it protects everyone it names.
Check whether it applies to youWhat you can do
Request a payoff or reinstatement quote
Ask in writing for the payoff amount good through a specific date, and for the reinstatement amount if you want to catch up instead.
Deadline: The servicer must answer within 7 business days of your written request.
Open the toolDispute a wrong payoff
If the payoff includes fees you did not owe or is late, send a notice of error.
Open the tool
Honest limits
- The 7-day rule covers payoff statements. A reinstatement quote is not covered by this rule, though many state laws and loan contracts require one.
- This is general legal information, not legal advice, and it does not promise any result. A HUD-approved housing counselor or a lawyer can look at your facts.
The law
- Federal regulationTILA / Regulation Z — payoff statements
12 C.F.R. § 1026.36(c)(3)
Exact part: (c)(3)
What it says: A creditor, assignee or servicer must send an accurate payoff statement within a reasonable time, no more than seven business days after a written request.
Read the official texthttps://www.ecfr.gov/current/title-12/part-1026/section-1026.36#p-1026.36(c)(3) - Federal lawTILA — requests for payoff amounts
15 U.S.C. § 1639g
What it says: A creditor or servicer of a home loan must send an accurate payoff balance within 7 business days of a written request.
Read the official texthttps://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1639g&num=0&edition=prelim - Federal regulationRegulation X — payoff errors
12 C.F.R. § 1024.35(b)(6)
Exact part: (b)(6)
What it says: Failing to give an accurate payoff balance is a servicing error the borrower can dispute, and the servicer must answer within 7 business days.
Read the official texthttps://www.ecfr.gov/current/title-12/part-1024/section-1024.35#p-1024.35(b)(6)
Court cases
- Homeowner lostSame topicBoren v. U.S. National Bank Ass'n
Boren v. U.S. Nat'l Bank Ass'n, 807 F.3d 99 (5th Cir. 2015)
a lender may abandon a prior acceleration by giving notice that it seeks less than the full accelerated balance, which restarts the four-year limitations period
- Homeowner lostSame topicWhittier v. Ocwen Loan Servicing, L.L.C.
Whittier v. Ocwen Loan Servicing, L.L.C., 594 F. App'x 833 (5th Cir. 2014) (per curiam) (unpublished)
a RESPA claim against a servicer fails without evidence of actual damages caused by the violation
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner wonSame topicRenfroe v. Nationstar Mortgage, LLC
Renfroe v. Nationstar Mortg., LLC, 822 F.3d 1241 (11th Cir. 2016)
a servicer that answers a borrower's written request without a reasonable investigation may be liable under RESPA when the borrower alleges resulting damages
- Homeowner wonSame topicJesinoski v. Countrywide Home Loans, Inc.
Jesinoski v. Countrywide Home Loans, Inc., 574 U.S. 259 (2015)
a borrower exercises the Truth in Lending right to rescind by notifying the lender in writing within three years, without needing to sue within that period
- Homeowner wonSame topicMarais v. Chase Home Finance LLC
Marais v. Chase Home Fin. LLC, 736 F.3d 711 (6th Cir. 2013)
a borrower who alleges actual damages, such as added interest, caused by a servicer's deficient response to a qualified written request states a RESPA claim
Related rights
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 rightYour 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 rightNotice 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 rightThe 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 rightGet 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 rightThe right to be heard in court, and to speak for yourself
U.S. Const. amend. XIV, § 1Due Process Clause
Due process means that before the government, through a court, takes your property, you must get a meaningful chance to be heard. In federal court, you have a legal right to present your own case without a lawyer. Most state courts also let people represent themselves, under state rules.
Read this right