<P> It is the responsibility of the lender to monitor third party fees in relationship to the services rendered to ensure no illegal kickbacks or referral fees are made . </P> <P> Upon receipt of a qualified written request, a mortgage servicer is required to take certain steps, each of which is subject to certain deadlines . The servicer must acknowledge receipt of the request within 5 business days . The servicer then has 30 business days (from the request) to take action on the request . The servicer has to either provide a written notification that the error has been corrected, or provide a written explanation as to why the servicer believes the account is correct . Either way, the servicer has to provide the name and telephone number of a person with whom the borrower can discuss the matter . The servicer cannot provide information to any credit agency regarding any overdue payment during the 60 - day period . </P> <P> If the servicer fails to comply with the "qualified written request", the borrower is entitled to actual damages, up to $2,000 of additional damages if there is a pattern of noncompliance, costs and attorneys fees . </P> <P> However, critics say that kickbacks still occur . For example, lenders often provide captive insurance to the title insurance companies they work with, which critics say is essentially a kickback mechanism . Others counter that economically the transaction is a zero sum game, where if the kickback were forbidden, a lender would simply charge higher prices . To which others counter that the intended goal of the legislation is transparency, which it would provide if the lender must absorb the cost of the hidden kickback into the fee they charge . One of the core elements of the debate is the fact that customers overwhelmingly go with the default service providers associated with a lender or a real estate agent, even though they sign documents explicitly stating that they can choose to use any service provider . </P>

Violations under the real estate settlement procedures act (respa) are subject to