Federal Court Dismisses RESPA QWR Putative Class Action for Lack of Standing

The U.S. District Court for the District of Massachusetts recently dismissed a putative class action against two mortgage loan servicers in which the plaintiffs alleged that the servicers violated RESPA by refusing to provide certain requested information related to the servicing of the plaintiffs’ loans.

Plaintiffs alleged that, pursuant to RESPA, they each sent the servicers a Qualified Written Request (QWR) related to the servicing of their loans which contained a Notice of Error and Request for Information seeking, among other things, transcripts and recordings of the plaintiffs’ calls with the servicers.  The plaintiffs further alleged that they received only a partial response, and that the servicers violated RESPA by failing to provide the call transcripts and recordings as requested.  The servicers argued that they reasonably responded to the plaintiffs’ QWR by providing 183 pages of information, and that they were not required to substantively respond to the request for transcripts and recordings pursuant to a Regulation X exception because the transcripts and recordings were confidential and producing them would create an undue burden.

In granting the servicers’ motion to dismiss the action, the court held that the plaintiffs’ requests for transcripts and recordings of phone calls qualified as QWRs pursuant to RESPA, and that the servicers were thus obligated to respond to them.  However, because the plaintiffs’ only alleged injury was that they were not provided with the information and materials they requested from the servicers, rather than any actual damages, the court held that the plaintiffs lacked Article III standing to bring the case.  The court did not rule on whether the servicers met a Regulation X exception related to their undue burden and confidentiality claims.