We believe such a charge would violate the Real Estate Settlement Procedures Act (RESPA). The RESPA prohibits a servicer from charging a fee for certain mortgage statements, including those required by the Truth in Lending Act (TILA). The TILA requires larger servicers (such as your bank) to provide periodic loan statements for residential mortgage loans. These periodic statements may be sent electronically with the borrower’s consent. If the borrower does not consent, however, then paper statements are required. Consequently, charging a fee for the required paper statements would violate RESPA.

Note that borrowers who already receive electronic disclosures for any other account with your bank “shall be deemed to have consented to receiving e-statements in place of paper statements.” It is not necessary to obtain a separate consent to send electronic statements to such customers.

For resources related to our guidance, please see:

• Real Estate Settlement Procedures Act, 12 USC 2610 (“No fee shall be imposed or charge made upon any other person (as a part of settlement costs or otherwise) by a lender in connection with a federally related mortgage loan made by it . . . for or on account of the preparation and submission by such lender or servicer of the statement or statements required (in connection with such loan) by sections 2603 and 2609(c) of this title or by the Truth in Lending Act . . . .”)

• Truth in Lending Act, 15 USC 1638(f)(1) (“Periodic statements for residential mortgage loans . . .  The creditor, assignee, or servicer with respect to any residential mortgage loan shall transmit to the obligor, for each billing cycle, a statement setting forth each of the following items, to the extent applicable, in a conspicuous and prominent manner . . . .”)

• Regulation Z, 12 CFR 1026.41(c) (“The servicer must make the disclosures required by this section clearly and conspicuously in writing, or electronically if the consumer agrees, and in a form that the consumer may keep . . . .”)

• Official Interpretations, Regulation Z, 12 CFR 1026, Paragraph 41(c), Comment 4 (“Any consumer who is currently receiving disclosures for any account (for example, a mortgage or checking account) electronically from their servicer shall be deemed to have consented to receiving e-statements in place of paper statements.”)