Notice of Error (NOE)
Formally notify your mortgage servicer of a specific servicing error and demand correction under RESPA.
Overview
A Notice of Error (NOE) is a formal written notice to your mortgage servicer under RESPA (12 CFR § 1024.35) identifying a specific servicing error and demanding correction. Unlike a QWR (which requests information), a Notice of Error asserts that the servicer has ALREADY made an error and demands it be fixed. Servicing errors can include: misapplication of payments, charging unauthorized fees, incorrect escrow calculations, dual tracking (foreclosure while modification is pending), failure to transfer accurate information to a new servicer, and failure to provide accurate payoff balances. The servicer must: acknowledge within 5 business days, investigate and correct the error or explain why no error occurred within 30 business days (7 business days for some error types), and refrain from reporting negative credit information related to the error during the investigation.
Purpose
- •Force correction of specific identified servicing errors
- •Challenge unauthorized fees, misapplied payments, or incorrect escrow calculations
- •Create a legal record of the error and the servicer's response
- •Stop negative credit reporting related to the error during the investigation
- •Build a RESPA violation claim if the servicer fails to properly respond
When to File
Send as soon as you discover a servicing error. A Notice of Error must be sent within 1 year of the servicer's failure or error (for most errors). There is no limit on the number of Notices of Error you can send — each new error is a separate violation. Send immediately upon discovering a specific error — delay weakens your claim.
Timeline
Servicer must acknowledge within 5 business days. Response due within 30 business days (7 business days for payoff or foreclosure avoidance errors). Errors in payoff statements are governed by 12 CFR § 1026.36(c) under TILA with separate requirements.
Key Elements & Requirements
Borrower identification: Name, property address, loan number
Statement that this is a Notice of Error under RESPA Regulation X (12 CFR § 1024.35)
Specific error identified: Exactly what the servicer did wrong, with dates and amounts
Supporting documentation: Payment records, correspondence, statements showing the error
Requested correction: What specific action you want the servicer to take
Contact information: Where to respond
Legal Standard
Under 12 CFR § 1024.35, a servicer must respond to a Notice of Error by: (1) conducting a reasonable investigation, (2) correcting the error and notifying the borrower, or (3) determining that no error occurred and providing a written explanation with contact information for further assistance. The servicer must acknowledge within 5 business days and respond within 30 business days (7 business days for errors related to payoff statements or foreclosure avoidance). Failure to comply creates a RESPA claim.
Strategy & Tips
Be specific — a Notice of Error that says 'my account has errors' is not effective. Identify the exact error: 'On January 15, 2026, you charged a $75 late fee despite my payment having been received on January 10, 2026 (see attached bank statement and payment receipt).' Attach documentation. Keep proof of delivery. If the servicer fails to respond or disputes your claim without adequate investigation, you have a RESPA violation that can form the basis of a claim or defense.
Court Filing Information
Where to File
NOT filed in court — sent to the servicer at the address designated for Notices of Error (check mortgage statement or servicer website). KEEP PROOF OF DELIVERY.
Fees
No filing fee. Certified mail: $7-$10.
Format
Written letter identifying the specific error with supporting documentation.
Copies Required
Original to servicer (certified mail, RRR) + your copy + attorney copy. KEEP RECEIPTS.
Frequently Asked Questions
Can I send a QWR and a Notice of Error at the same time?+
Yes. Combining a QWR (requesting information) with a Notice of Error (identifying known errors) is often the most effective approach. The QWR casts a wide net for information, while the Notice of Error immediately challenges specific errors you have already identified. The servicer must respond to both separately.
What types of errors can a Notice of Error address?+
12 CFR § 1024.35(b) lists 11 specific categories of servicing errors including: failure to credit payments, imposing unauthorized fees, failure to provide accurate payoff statements, dual tracking, failure to transfer accurate information to a new servicer, making the first notice or filing for foreclosure in violation of RESPA, and any other error relating to the servicing of a mortgage loan. This is a broad definition — most servicing errors are covered.
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