Fraud Investigator Says Bank Denied Qualified Written Request

MFI-New York LLC and its parent company, MFI-Miami LLC, say Hudson City Savings Bank is attempting to block a fraud investigation involving lending practices.

The investigation stems from homeowner Jaclyn Kuss' requesting a copy of her file from Hudson City. She was allegedly told that the bank was not obligated to give her said copy.

MFI-Miami, a mortgage fraud investigation company, issued a Qualified Written Request for certain documents in Kuss' file. This type of request is allowed under the Real Estate Settlement Procedures Act, MFI-Miami says.

On March 6, MFI-Miami received a letter from Bernadette Zelop, first vice president of Hudson City Savings. According to MFI-Miami, Zelop's letter rejecting the request said, "All disclosures prior to and at origination were provided to our mortgagors."

MFI-Miami President Steve Dibert claims that Zelop refused to comply with his request for documents relating to Kuss' mortgage. "She said all relevant documents were provided at closing," Dibert says.

Damon H. Serota, a New York attorney with law firm Bonnie L. Canty PA, says lenders are required under Section 2605 (e) of Title 12 of the United States Code to respond to a Qualified Written Request.

"[The Real Estate Settlement Procedures Act] provides for both substantial penalties and fines for non-compliance," Serota says.



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