Loan Servicing Transfer Checklist

Transcription

1 Loan Servicing Transfer Checklist In an effort to smoothly board your loan we have included this check list. We will make every effort to communicate effectively with you at all times. Please help us make sure your loans with us are well taken care of by making sure each loan package is submitted to us in full and in a timely manner. If you already have properties with us for loan servicing, this new form will still need to be filled out, dated and signed so we can make sure you are aware of our expectations for loans going forward. Please be advised, if an incomplete package is received for a loan, servicing of that loan may be delayed until ALL documents or items are received and may incur a RUSH FEE. When completed, please your complete package to the below. Also, feel free to contact us at the number or below if you have any questions. Completed Loan Setup Form: Borrower Information Loan Servicing Transfer Form Completed Loan Setup Form: Underlying Lien, if applicable Authorization to Release Information, for underlying liens if applicable Signed Loan Servicing Agreement Copy of Deed of Trust(s) Copy of Note(s) Payment History

2 LOAN SERVICE AGREEMENT I (Print Name) hereby acknowledge the following in regard to the servicing of my notes with August REI, LLC. 1. SERVICING: Servicing of the Note will be performed by August Real Estate Investments, LLC (herein after referred to as August REI, LLC or Servicer), a Residential Mortgage Loan Servicer NMLS # , per the servicing agreement between August REI Holdings, LLC and August REI, LLC. This loan servicing agreement is made between August REI, LLC and the Lender/Investor/Seller. The Lender/Investor/Seller (herein referred to as Lender). The Lender hereby authorizes and instructs August REI, LLC and August REI, LLC agrees to service the Loan Service Agreement and in that connection, to do the following in regards to the Real Estate Lien Note (herein after referred to as Note): A. To receive any and all payments due to Lender on the Loan Servicing Acknowledgement, which includes but is not limited to all monthly payments, all late payments and all payoffs in full or in part. Lender retains August REI, LLC to employ commercially reasonable and prudent practices to collect all scheduled payments on Loans identified by the Lender and further authorizes Servicer to direct any payment to be made payable to August REI, LLC s Trust Account. B. To endorse to August REI, LLC s Trust Account any checks or money orders payable to Lender and to immediately deposit same in August REI, LLC s Trust Account which is to be maintained in accordance with such laws and rules applicable thereto and as to which August REI, LLC will not commingle its assets. C. To transmit Lenders portion of such payments of principal and interest as required by laws, rules and regulations which are applicable. There is a hold on all checks to allow for clearing with the bank. See Payment Turn Time page attached. Good funds are delivered to the Lender without a hold at the address shown herein. August REI, LLC will not use such payment for any other transaction other than the transaction for which the funds are received. D. If the source of payment is not the maker of the Loan Service Agreement, to inform the Lender. E. To cause August REI, LLC s Trust Account utilized for this transaction to be inspected as required by such laws, rules and regulations as are applicable thereto; F. To receive Notices of Default of prior encumbrances and to promptly notify Lender of any default upon the Note and any prior encumbrances. G. To execute and deliver on Lender s behalf and in Lender s name any documents necessary of convenient for the exercise of any rights or duties which Lender may have under the Loan Service Agreement. Including and not limited to Request for Payoff Demands, Beneficiary Statements, Insurance Declarations and other instructions to the Trustee of the Loan Service Agreement.

3 LOAN SERVICE AGREEMENT (Page 2) H. To receive Notices of Default of prior encumbrances and to promptly notify Lender of any default up the Note and any prior encumbrances. I. To grant such extensions as August REI, LLC deems reasonably appropriate. J. Lender may terminate August REI, LLC s authority hereunder at any time upon 10 days written notice and upon repayment and/or payment of the following: Any outstanding payments made by August REI, LLC on Lender s behalf. Any accrued expenses incurred by August REI, LLC in connection with servicing the Note. 1. Further, this Agreement shall terminate when any of these events occur for a specific loan address. Payment in full of the Loan and reconveyance of the deed(s) of Trust securing the Loan. Recordation of a trustee s deed following a foreclosure of the Loan. K. The following provisions (1-3) apply ONLY to loans in which Lender holds an undivided fractional interest in the Note. 1. Lender acknowledges that it holds or will hold an undivided interest in the Note as a tenant in common with another or other lenders all of whom are executing counterparts (except as to vesting and payment instructions) of this loan servicing agreement. When so executed, all such counterparts shall constitute an agreement between all holders of interests in the Loan Service Agreement between all holders of interests in the Note as well as between Lender and August REI LLC. 2. A default upon any interest in the Loan Service Agreement shall constitute a default upon all interests. A simple majority in interest of lenders may determine and direct the actions to be taken on behalf of all lenders in the event of default or with respect to other matters requiring the direction or approval of lenders, and such majority may designate August REI, LLC to so act in their behalf. 3. August REI, LLC shall furnish to Lender a list of names and addresses of all lenders holding an interest in the Note upon five (5) days written notice. L. Attorney s Fees. If either party commences any action or proceeding to enforce this Loan Service Agreement or any right arising under this Agreement, the prevailing party shall be entitled to recover from the other party the reasonable and necessary actual attorneys fees, costs and expenses (and all related fees, costs and expenses) incurred by it in connection with such action or proceeding and in connection with the enforcement of any judgement thereby obtained. M. Indemnification: Lender shall defend, indemnify and hold harmless August REI, LLC and its officers, members, directors, employees and agents (collectively August REI, LLC) from any and all claims, liabilities, demands, suits, debts, accounts, obligations, actions and causes of action of any nature whatsoever by any third party including reasonable attorneys fees, arising out of or related to any notes

4 LOAN SERVICE AGREEMENT (Page 3) subject to this Loan service agreement based on: (i) any information about such note supplied by lender to August REI, LLC; (ii) any material facts that lender knows but fails to disclose to August REI, LLC relating to the note; (iii) actions taken by August REI, LLC pursuant to instructions or directions provided by Lender to August REI, LLC; (iv) lender s failure to observe or perform any of lenders covenants, agreements, warranties or representations contained in this Loan service agreement;(v) any losses caused by notices of default and/or notices of trustee sale recorded against the property if said notice was recorded prior to the receipt of complete file information from former servicer (on takeover files) or escrow holder (on new closings) and within 60 days of receipt of complete file information to August REI, LLC and (vi) alleged acts by August REI, LLC related to the note, including but not limited to, negligence, wrongful foreclosure, filing false lien, debt collection practices, claims under truth in lending act and/or real estate settlement practices act. Lenders indemnity obligation does not extend to any conduct by August REI, LLC that is found by a trier of fact to be grossly negligent, willful, or fraudulent. Lender s indemnity obligations to August REI, LLC shall survive the expiration or termination of this Loan service agreement. 1. DUTIES TO/OF BORROWER: Will receive a Welcome Packet which includes coupons to be sent with monthly payments Has their choice of payment type available, unless a particular payment type has been agreed upon between lender and borrower in writing, a copy of which is attached to each Loan Setup Sheet. May pay by personal check, Pay Lease or ACH until such time as an NSF return is received after which time only certified funds (ie., bank cashier s check or money order) will be accepted. Monthly payments will be made payable to August REI, LLC at PO Box , Garland, TX accordingly, unless another payment type has been arranged with August REI, LLC. Will receive a monthly statement on or around the 16 th of each month via or mail. Will communicate directly with August REI, LLC regarding payments, servicing of the Note and any other pertinent information regarding the loan. Will receive an annual escrow analysis and notice of adjustment of monthly payment, if taxes and/or insurance amount changes Will receive a yearly 1098 Interest and Tax Form Has discussed with Lender and agrees that an appropriate homeowner s insurance policy has been put in place. DUTIES TO/OF THE LENDER: Will provide full contact information and filled out W-9 Form to August REI, LLC for tax reporting purposes. Will complete and submit to August REI, LLC the necessary forms and required documents per the setup checklist for setup of the account and each property. Will receive monthly proceeds via Direct Deposit. If you choose not to do Direct Deposit, you will be charged a $3.00 Check Fee for each check remitted. Standard date for checks to be cut is Tuesday and Friday.

5 LOAN SERVICE AGREEMENT (Page 4) Will receive a monthly statement of account on or around the 30 th of each month via upon request. Will have online access to the Lender Portal 24/7. The portal is updated at the end of the business days. Will communicate directly with August REI, LLC regarding payments, servicing of the Note and any other pertinent information regarding the loan. Will forward to August REI, LLC immediately upon receipt, any and all communication regarding the underlying mortgage, including but not limited to escrow analysis, taxes and homeowner s insurance. Has discussed with Borrower and agrees that an appropriate homeowner s insurance policy has been put in place. 3. Services and Fees: Basic Servicing Fees: Fees are described and charged as follows and are subject to change only upon 30 days prior written notice to Lender and Borrower. Setup Fee - $ Due in Full upon submittal of Loan Servicing Setup Form to August REI, LLC. Setup Fee will be paid by (check one): Lender (collected with 1 st month s proceeds) Borrower (collected at closing) Monthly Service Fee - $ Will be paid by (check one): Lender Borrower Split 50/50 between Lender and Borrower Monthly Proceeds Check Fee - $3.00. Fee will be charged to Lender. However, if Lender chooses to have their check Direct Deposited, August REI, LLC will waive fee. (See attached Lender/Investor Authorization Form for Automatic Direct Deposit.) Extra Fees: Research/Project Fee - $50.00 per hour (as applicable). Sometimes, August REI, LLC will have to recreate and research the historical information of your loan. This is in due in part, but not limited to, receiving incomplete documents needed to satisfactorily service your loan. Also, due in part, but not limited to, problems with the loan that arose due to inappropriate servicing of Note prior to August REI, LLC receiving the Note. This Research/Project Fee will be assessed to you for time spent on the servicing of your Note above and beyond the normal Monthly Service Fee Duties to Borrower and Lender. Rush Fee - $40.00 charged to Lender when package is submitted with less than 15 days to borrower s first payment due. Incomplete Lender Servicing Packet Fee - $18 per hour (as applicable). It is the Lender s responsibility to give August REI, LLC all necessary paperwork and history regarding the onboarding of new Notes with August. When we receive incomplete servicing packets from lenders, it takes our office more time and resources to get them onboarded. Due to this added burden, we will charge the Lender the extra time

6 LOAN SERVICE AGREEMENT (Page 5) spent onboarding their loans with August REI, LLC. The Lender, of course, can circumvent this fee by making sure that each item we have asked for is attached to each Loan file to be onboarded with us. Borrower s Late Charges - Per Note, Split 50/50 between August REI, LLC and Lender. NSF Return Fee - $ Charged to Borrower. Deboarding Fee - $ Charged to Lender. Loan Payoff Request - $ Charged to Borrower Additional Services: Additional services are available as requested and agreed upon between Lender and Servicer or Lender and Borrower at additional fees, including but not limited to: Homeowner Insurance Correction and Implementation Deferred payment or workout programs I (Print First Name) agree with the terms and conditions set forth in this Loan Service Agreement. I have been made aware of any fees and charges as described to me above and agree to pay stated fees and charges to August REI, LLC in exchange for their servicing of any and all of the loans I have with August REI, LLC. I give full authority to August REI, LLC, to contact my borrower s in any and all loan related issues, payments, etc. in the servicing of each of my loans with August REI, LLC. Again, if you as the Lender, provide the wrong information to August REI, LLC in the servicing of this loan, we are not held personally responsible. It is the Lender s responsibility to give August REI, LLC any and all correct information in regards to these loans. Lender Signature Printed Name & Title Company Date

7 Loan Transfer Form LENDER/SELLER 1: Name (as per your tax return) Phone Alt. Phone Mailing Address City State Zip Attached W-9 for tax purposes or IRS EIN or Tax ID Number letter LENDER S BANK INFORMATION FOR CASH FLOW/DIRECT DEPOSIT: Name of Bank: Type of Account: Checking Savings Bank Address: Name on Account: Routing #: Acct #: If you choose not to do Direct Deposit, you will be charged a $3.00 Check Fee for each check remitted. Standard date for checks to be cut is Tuesday and Friday. Payments can be released monthly or quarterly upon request. LENDER/SELLER 2: Name (as per your tax return) Phone Alt. Phone Mailing Address City State Zip Attached W-9 for tax purposes or IRS EIN or Tax ID Number letter LENDER S BANK INFORMATION FOR CASH FLOW/DIRECT DEPOSIT: Name of Bank: Type of Account: Checking Savings Bank Address: Name on Account: Routing #: Acct #: If you choose not to do Direct Deposit, you will be charged a $3.00 Check Fee for each check remitted. Standard date for checks to be cut is Tuesday and Friday. Payments can be released monthly or quarterly upon request. LOAN INFORMATION (For Existing Note(s) between current owner and lender): Loan Origination Date: First Payment Date: Last Payment Date: Any Fees (legal fees, late fees) Due: $ How is the Escrow currently managed: (Check One) Servicer Underlying Mortgage No Escrow Current Amount Collected Each Month: $

8 BORROWER S LOAN SERVICING SETUP FORM BORROWER AGENT OR SOURCE (INVESTOR): Name (If none, leave blank): Phone: BORROWER(S) INFORMATION: Borrower Name (as per your tax return) DOB Main Phone Alt. Phone Mailing Address City State Zip Attached W-9 for tax and credit purposes Co-Borrower Name (as per your tax return) DOB Main Phone Alt. Phone Mailing Address City State Zip Attached W-9 for credit purposes INSURANCE INFORMATION: Company: Agent: Agent Phone Number: Agent Borrower Signature Co-Borrower Signature Date We at August REI, LLC thank you and look forward to working with you. Please contact us at the address or telephone number with any questions you may have regarding your loan servicing.

9 Formulario de configuración de servicios de préstamos Del Deudor Agente de Bienes Raices (Inversor): Nombre (si no tiene, dejar en blanco) Teléfono: PRESTATARIO (S) INFORMACIÓN: Nombre prestatario (según su declaración de impuestos) FDN Teléfono principal Alt Teléfono Correo electronico Ciudad State postal adjunta W-9 a efectos fiscales y de crédito Nombre Coprestatario (según su declaración de impuestos) FDN Teléfono principal Alt. Teléfono Correo electronico Ciudad State postal adjunta W-9 a efectos de crédito INFORMACIÓN DEL SEGURO: Empresa: Agente: Agente Número de teléfono: Agente prestatario Firma Co-Prestatario Firma Fecha Nosotros en de AUGUST REI, LLC le damos las gracias y esperamos con interés trabajar con usted. Por favor, póngase en contacto con nosotros en la dirección de correo electrónico o número de teléfono con cualquier pregunta que pueda tener sobre su servicio de préstamos.

10 UNDERLYING MORTGAGE INFORMATION and LIEN WAIVER Investment Property Address: City: State: Zip: The information I provided herein and accompanying documentation are true and correct to the best of my knowledge. I will not hold August REI, LLC responsible for information that I have given them that is incorrect or incomplete. I understand that August REI, LLC will set up my loan payments, disbursements, escrows, etc. based upon information I have provided. I understand that I have to notify August REI, LLC in a timely manner when I receive documentation or obtain knowledge that pertains to my loan(s) so that they can update my loans accordingly. I understand August REI will be unable to verify the payment was properly processed by The Lienholder, or that The Lienholder has adjusted or changed the amount due, whether due to a change in forced placed escrow, escrow calculations, unpaid escrow, interest-rate adjustments, or any other cause to change the amount the Lienholder is attempting to collect. Lender s Signature Lender s Printed Name Date PROPERTY TAX INFORMATION (please check one as applicable): Taxes are Escrowed in Underlying Mortgage Taxes are to be Held in Trust by August REI, LLC (complete the following): NOTE: For Initial Escrow Funding at Closing, make check payable and remit to August REI, LLC: LENDER S LOAN SERVICING SETUP FORM HOMEOWNER S INSURANCE INFORMATION (please check one as applicable): Homeowner s Insurance is Escrowed in Underlying Mortgage Homeowner s Insurance is to be Held in Trust by August REI, LLC. NOTE: A copy of the Declarations Page of your policy must accompany this completed setup form.

11 UNDERLYING MORTGAGE INFORMATION and LIEN WAIVER Page 2 BORROWER/PAYMENT/DISTRIBUTION DETAILS: Borrower s Monthly Payment Total $ to be Disbursed as follows: AMOUNT PAYEE (Please write the name below): Underlying Mortgage $ Underlying Mortgage $ Lender/Investor $ Lender/Investor $ Monthly Service Fee $35.00 Payment to ESCROW Breakdown Property Tax Escrow Insurance Escrow CURRENT UNDERLYING MORTGAGE STATEMENT MUST ACCOMPANY SETUP PAPERWORK UNDERLYING MORTGAGE PAYMENT ALLOCATION 1st Lien Mortgage Holder August Loan Servicing will pay: Mailing Address City State Zip Phone Account # Payment Due Date Full Payment Amount $ Underlying Lien Holder s Name SSN#

12 UNDERLYING MORTGAGE INFORMATION and LIEN WAIVER Page 3 CURRENT UNDERLYING MORTGAGE STATEMENT MUST ACCOMPANY SETUP PAPERWORK 2nd Lien Mortgage Holder August Loan Servicing will pay: Mailing Address City State Zip Phone Account # Payment Due Date Full Payment Amount $ Underlying Lien Holder s Name SSN# Any Special Notes / Instructions from Lender to August REI, LLC? Feel free to write below.

13 Authorization to Release Information Complete one form for each lien Account # or Loan #: Lender Name: Lender Phone: Lender Fax: Property Address: City: State: Zip: I hereby authorize you to release any and all information regarding my account for the above address, including loan status, interest rate, payoff amount, amount of monthly payment, late charges, penalties, and fees (if applicable), foreclosure attorney s name and phone number to the following: August REI, LLC To Include: Amy Sayre, Consuelo Moore, Don Sayre, Maria Estrada & Janeth PO Box , Garland, TX Fax (888) Phone (972) Phone (844) Borrower #1: SS#: - - Signature: Date: Borrower #2: SS#: - - Signature: Date:

14 Payment Turn Time OVERVIEW: We aim to please YOU, our customer. Please take a moment and read through this document. We want to make you aware of our Turn Around Time for payment on your account. Specifically in regards to the average time it takes for us to receive the funds, process the funds in our office, and how long it takes (on average) for the banks to process the payments. IF PAID BY: Certified Funds (Money Orders, Cashier s Checks): 1. Received before 3:30pm are paid out the same day. 2. Funds received after 3:30 pm are processed out the following day. Online Payments: 1. We receive notification and apply the payment to the loan. 2. We receive daily deposits when the funds clear the bank. Please Note: The average daily turnaround time for the deposit is 2-4 business days. ACH Payments: 1. We draft the account on the day requested by the borrower. 2. We verify the funds are good before releasing the payment so we are not reversing funds from lender's accounts. Please Note: The average daily turnaround time for the deposit is 2-5 business days. Check Payments: 1. The day the payment is received in the mail, the payment is applied to the loan. Then the payment is deposited in the bank. 2. We apply funds to the loan and deposit it in the bank, Monday through Friday. Then we have to wait for the funds to clear the bank before dispersing checks to lenders. Please Note: The average turnaround time for deposits to show up in the lender s account is 4-5 business days.

15 Payment Turn Time Page 2 IMPORTANT regarding wrap, Sub2 or assumptions: Because of the turn around time expected for payments to be received in our office, verified and the banks to clear the payments on your account we HIGHLY recommend you make sure that you have one month s house payments deposited into your account with August REI. This will ensure we can pay your mortgage on the first regardless of the day of the month your payee provides their payment to us. This will ensure we have a buffer built into the turn around time from your payee. Example: If your payee doesn t make their payment until the 10th of the month then realistically you can expect their payment to NOT be processed by the banks and noted into your mortgage account until at least the 15th of the month (or later). Unfortunately, we are not the bank, just the payment processor, and we can t make your payment for you on the first if your payee hasn t given us their payment unless you have a buffer built into your account. Lender s Signature: Printed Name: Date: