The CARES Act, which was passed in 2020, is no longer actively in effect. All CARES Act services are expected to end by September 2027. This page is maintained for reference
Under the CARES Act, if you have an FHA-backed mortgage, you have the right to a grace period of your mortgage payments, known as CARES Act Forbearance. During this time, the mortgage servicer may NOT report you to the Credit Reporting Agencies.
Mortgage servicers may not implement the proper procedures to protect your credit rating during your forbearance period. If that happens, it would violate your rights under the Real Estate Settlement Procedures Act (RESPA).
In this article, I will walk you through what you need to know about CARES Act violations, including how to challenge them with your lender by sending a Notice of Error.
Sometimes, resolving a claim even after a violation is discovered can be complicated. For additional support, contact Denbeaux Law today for a free initial consultation with one of our attorneys who can advise you on your next steps.
What To Know About Claiming ACARES Act Violation:
Before you can sue a mortgage servicer for violating your rights, you MUST serve the mortgage servicer with a letter that:
- Explains what the violation is and
- Tells the servicer how you want the violation fixed and
- It gives them time to solve the problem.
Note: In some cases, depending on the violation, you must serve the loan owner as well.
The letter must be in writing. Since many of these letters go missing, they must be sent via Certified Mail, Return Receipt Requested. Send it to the address that each mortgage servicer identifies as the only valid address for service of a Notice of Error.
This is a very complex and nuanced statute. It is the only statute that protects your rights under the CARES Act.
What To Do If You’re Facing A CARES Act Violation:
To help people who face this problem, I am providing a copy of the Notice of Error letter. Copy the letter, insert the name of your mortgage servicer, your account number, and your name and address.*
The letter must be sent only to the address that your mortgage servicer has set aside for receiving Notices of Error.
In order to make this process even more complicated and difficult, mortgage servicers change this address from time to time. You must use the latest address listed by the mortgage servicer to send your Notice of Error. Here is how to find the most recent and correct address.
*A Consumer Rights Attorney can do this for you, but usually for a fee. You can also protect yourself for the cost of mailing a Certified Return Receipt letter.
How To Serve A Notice To The Correct Address:
RESPA requires the servicer to publicize the address for accepting the Notice of Error and make it easy to find. You can find the address either by looking at the mortgage statement you get every month and finding it on the back of one of the pages, or by using Google search to find the correct address.
Below is an example of how you can use Google Search to find the correct mailing address to send a Notice of Error to a mortgage servicer, using Bank of America as an example.
- First, do a Google search on ‘Bank of America Notice of Error,’ and you will probably get to this page:
- Click on the down arrow ( which we have highlighted in yellow) to the right of Refinance. You will see a Menu of the FAQs that Bank of America makes available. In this case, it is the last item on the Menu at the end of the FAQs list.
- Click on ‘Notices of Error & Requests for Information,’ and you should see the correct and most recent address to mail the Notice of Error:
Please, do not rely on the above. Search for the current address, as Bank of America can change this address at any time!
Once you are sure you have the correct address, print the letter, sign it, and send it via Certified Mail, Return Receipt Requested, and await a response.
When To Hire An Attorney
If, after 30 days, you do not have a satisfactory solution, you are ready to talk to a consumer rights attorney. Any attorney with any experience in the area will give you a free consultation and, if you have a claim, will take it on a contingency arrangement.
If you are a New Jersey resident, you can contact Denbeaux Law to schedule a free consultation. One of our attorneys will review your case, explain your rights, and help you understand your next steps.
