Medrano v. Flagstar Bank

A mortgage-loan servicer's duty to respond under the Real Estate Settlement Procedures Act, 12 U.S.C. § 2605, is not triggered unless the borrower includes her name and account information, the reasons the borrower believes the account is in error, and a request for information regarding the service of the loan.

Jaime and Maribel Medrano sent three letters to Flagstar Bank challenging the increase in their mortgage payments. Flagstar did not respond to any of the letters and the Medranos filed claims under the Real Estate Settlement Procedures Act. The Medranos claimed that Flagstar’s failure to respond to the letters violated 12 U.S.C. § 2605, which requires a loan servicer to respond to information requests regarding the service of the loan. The district court dismissed the claims, stating that the letters were not “qualified written requests” that trigger the servicer’s responsibility to respond. The Ninth Circuit upheld the dismissal and adopted the Seventh Circuit’s approach, holding that a request must contain the borrower’s name and account information, the reasons the borrower believes the account is in error, and a request for information regarding the loan. The Court found that the letters did not request any information and, therefore, the servicer’s duty to respond was not triggered. AFFIRMED.