Regulation X (12 CFR Part 1024) implements RESPA's mortgage servicing provisions — error resolution, force-placed insurance restrictions, loss mitigation procedures, and early intervention requirements. Learn how Reg X violations create powerful foreclosure defenses and counterclaims.
Get Free Case ReviewRegulation X (12 CFR Part 1024) is the CFPB's implementing regulation for the Real Estate Settlement Procedures Act (RESPA). While RESPA itself covers settlement procedures and kickbacks, Regulation X specifically governs the ongoing relationship between mortgage servicers and borrowers — including how servicers must handle errors, loss mitigation applications, force-placed insurance, and early intervention with delinquent borrowers.
Regulation X was substantially amended in 2013-2014 by the CFPB to address widespread servicing abuses exposed during the foreclosure crisis. These amendments created detailed, enforceable standards that servicers must follow — and violations of these standards can be powerful tools in foreclosure defense.
Regulation X requires servicers to maintain written error resolution procedures and respond to borrower notices of error within specific timeframes:
A servicer's failure to properly respond to a notice of error (also called a Qualified Written Request or QWR) gives the borrower a private right of action. See our QWR Guide for step-by-step instructions.
Regulation X §1024.41 is the most important provision for foreclosure defense. It establishes detailed requirements for how servicers must handle loss mitigation applications:
Within 5 days of receiving a loss mitigation application, the servicer must notify the borrower whether the application is complete or incomplete. If incomplete, it must specify what is missing.
Within 30 days of receiving a complete application, the servicer must evaluate it for ALL available loss mitigation options — not just the one the borrower applied for.
Once a complete loss mitigation application is received more than 37 days before a scheduled foreclosure sale, the servicer cannot proceed with foreclosure until the application has been evaluated and any appeal period has expired.
Failed error responses, dual tracking violations, and improper loss mitigation handling are all Reg X violations. We'll identify violations and prepare the documents to enforce your rights.