A notice of error is alerting the mortgage company that it committed an error in the handling of the account. For example, the mortgage company failed to credit a payment or charged your account for something, say an insurance premium for a forced placement insurance policy when you already had insurance in place. Another example of an error could be that the amount of arrears claimed by the mortgage company is incorrect or the mortgage company is engaged in dual tracking (moving the case in a foreclosure proceeding despite the borrower submitting a full mortgage assistance application).
Whether the request is for information or is a notice of error, the mortgage company is required to respond within thirty business days. Any request or notice of error should be sent via certified mail. If the mortgage company fails to respond, it could be subject to a claim by the borrower for actual damages including reasonable attorney fees.
The QWR and notice of error can provide an opportunity to have an issue resolved within a relatively short period of time, assuming of course the mortgage company responds. If it does not respond, a borrower should file an online complaint with the Consumer Financial Protection Bureau (CFPB). This federal government agency is not always adequate in resolving disputes between a borrower and a mortgage company, but it does provide an avenue that should be pursued when facing a recalcitrant mortgage company. For more information of the CFPB click the site below.