Eleventh Circuit Takes on Mortgage Servicing Rules

In a brief opinion, the Eleventh Circuit recently examined Regulation X’s requirement that a loan servicer provide a written response acknowledging receipt of a written request for information (“RFI”) pursuant to 12 C.F.R. 1024.36.  In Meeks v. Ocwen Loan Servicing, the consumer’s counsel sent an RFI to the loan servicer via certified mail, return receipt requested.  Meeks v. Ocwen Loan Servicing, 2017 U.S. Dist. LEXIS 3677 (11th Cir. Mar. 1, 2017). Upon receipt, the mortgage servicer’s agent signed the certified return receipt and the receipt was then received by the consumer’s counsel.  Nine days after its receipt of the RFI, the mortgage servicer sent a substantive response to the RFI. 

12 C.F.R. 1024.36(c) requires the loan servicer to provide a written response acknowledging receipt within five days of receiving the RFI.  The issue before the court on appeal was whether: (a) the signed certified mail receipt satisfied the written acknowledgement provision of Reg X; and (b) the consumer had suffered a real and concrete injury.  Regarding the first issue, the court succinctly agreed with the district case that under the circumstances of the case, the return receipt satisfied the written acknowledgement provision of Reg X.  In making its determination, the court paid particular attention to the fact that the consumer’s counsel received the signed return receipt was undisputed.  As to the second issue, the court determined the consumer did not have standing under Article III, again noting that “Meeks (and his attorneys) had undisputed actual knowledge of receipt of the RFI, although they dispute that its form was sufficient to meet Regulation X’s requirements.  Thus, Meeks suffered at most ‘a bare procedural violation’ and he cannot show that he suffered a real, concrete injury from Ocwen’s actions.” Meeks at *4.