Frequently Asked Questions
It depends on the paper trail since statutory penalties run per false statement. Courts can award damages for the aggravation and distress these failures cause and punitive damages are potentially available for the worst conduct. In addition, the fee-shifting statute means the servicer can be ordered to pay your attorney fees on top of your other damages.
A denial letter is not the end. “No error” letters are evidence. Servicers are required to actually investigate, and an inaccurate “no error” answer can strengthen your case.
Possibly. If your escrow was collecting for your own policy, a lapse followed by expensive force-placed coverage is a classic escrow failure. The statements and letters around it often contain their own violations.
It can be. When misapplication produces false statements, wrongful fees, or demands for money you don’t owe, each false communication can be a separate statutory violation. The Fourth Circuit has confirmed you don’t have to prove the servicer did it on purpose to have a case.