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Guideline for Handling Unresponsive Lender

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Question: 
I need to know what is the guideline for handling an unresponsive lender when handling a payoff request. There is a legal timeline that they have to respond to (looking for reg. on this).
Answer: 

There is no current Federal regulation, but I know there are several State regulations that deal with this. In January 2014, Regulation Z will be amended to include:

Section 1026.36(c)(3) Payoff Statements. In connection with a consumer credit transaction secured by a consumer's dwelling, a creditor, assignee or servicer, as applicable, must provide an accurate statement of the total outstanding balance that would be required to pay the consumer's obligation in full as of a specified date. The statement shall be sent within a reasonable time, but in no case more than seven business days, after receiving a written request from the consumer or any person acting on behalf of the consumer.

First published on BankersOnline.com 4/1/13

First published on 04/01/2013

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