The Specialty Loan Servicing department is staffed by highly experienced skip trace, collection, workout, repossession, and property sale specialists. This department has High Touch Loan Servicing specifically designed to optimize the returns on Delinquent Loan Pools and Troubled Loan Portfolios. The Specialty Loan Servicing program can be used for Performing Loans, Non Performing Loans and Loan Pools.
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DELINQUENT LOAN POOLS: There are three stages to the purchase and working out of delinquent or mixed performing and non performing loan pools. These are Pre Purchase Evaluation, Due Diligence, and Collection/Servicing.
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TROUBLED LOAN PORTFOLIOS: These are existing portfolios typically made up of higher risk performing, sub performing and non performing loans. These loans go straight to Collection/Servicing with a strategy to get each loan on track, or get the collateral back as quickly as possible.
LOAN TYPES SERVICED
- Residential Loans
- Consumer Real Estate
- Commercial Real Estate
- Manufactured Housing
- Land
- Construction
- Prime
- Sub-Prime
- Fixed
- ARM
- HELOC
- MERS registered
LOAN STATUS DEFINITIONS
Newly Originated Loan:A Loan of any type that has just been made and just closed. The originating Broker/Company may have funded the Investor in at the closing, or the Broker/Company may have funded the loan themselves and will assign (or sell) the note to an Investor later. The originating Broker/Company may have a Note Rate and a Sold Rate. For example the note was originated at a Note Rate of 12% and is being sold to the Investor at a Sold Rate of 11% with the Broker/Company keeping 1% as additional monthly compensation (also known as a "Spread"). The Broker/Company will typically continue to monitor the loan through the servicer, and provide guidance to the investor.
Performing Loan: Any loan that is current, one or two months delinquent, according to its original or modified terms.
Non Performing Loan: Any loan that is three months or more delinquent. The known situation for each loan should be disclosed.
Loan Pools: A group of loans that may be Performing, Non Performing or mixed. The situation for each loan in the pool should be disclosed.
PRE PURCHASE EVALUATION for Delinquent Loan Pools
This involves running the Loan Pool Acquisition Model from information provided by the seller. This complex model estimates return based on purchase price, or calculates purchase price based on desired return. The Loan Pool Acquisition Model was developed by FCI over 6 years and analyzes each loan through 459 data variables, 20 calculation variables, and extrapolates 47 columns of data. The fee is $500 and includes 3 runs with variable information. To see an example of the Loan Pool Acquisition Model please CLICK HERE.
COLLECTION / SERVICING for Troubled Loan Portfolios & Delinquent Loan Pools
Collection / Servicing begins as soon as we receive copies of the seller's RESPA 'goodbye' letters listing FCI as the designated servicer. This quick start will also create lead time to find and submit claims under the short warranty period for those purchasing Delinquent Loan Pools. In Collection our initial focus is on locating, contacting and understanding the borrower's situation and developing workout and modification programs to keep payments coming in. Our secondary focus is on rapid, cost effective repossession and sale of the property generating a maximum net return. This program includes:
Collection Features (default)
- Late Notices sent at 15 days delinquent
- Collection Letters
- Final Notice sent at 31 days delinquent
- Borrower Inquiry calls handled
- Skip Trace
- Collection calls
- Negotiations
- Property Valuation available
- Lien Verification available
- Letters of Understanding
- Loan Modifications
- Forbearance Agreements
- Short Pay negotiations
- Bankruptcy Relief
- Legal Issues coordination
- Foreclosure Processing
- Short Sale coordination
- Property Preservation and Securing
- Handle City Notices and Issues
- REO Property Management
- Evictions
- REO Property Sale
Loan Servicing Features (non default)
- Borrower Welcome Letters
- Borrower Monthly Statement with Payment Coupon
- Lender Welcome Letter
- Lender Monthly Statement of all Accounts
- Same Day Payment Posting
- Daily Disbursement of Funds (after clearing)
- Electronic deposit of Funds (ACH) into Lender's account
- Optional Escrow/Impounds Service for Insurance and Taxes
- Payoff Demands
- Subordination Agreements
- Assignments
- Disbursements and Draws
- Releases and Reconveyances
- IRS 1098 and 1099-INT Reporting
- Paper or EDI Communication
- 24/7 Account Access
- Downloadable Reports
Collection Fee Structure
The standard fee for collecting and servicing delinquent SFR loans under the DELINQUENT LOAN PROGRAM is $95 per month per loan. Incoming performing loans, and loans brought current as a result of modification will go to the PERFORMING LOAN PROGRAM at $30 per month per loan for one lender plus $15 per month per additional lender, billed equally. Unusual loans and very large loans are negotiable. Collection fee on performing loans is 50% of paid late charges. There is a one time Loan Setup and File Scrubbing Fee (submitted data reconciled to the document data) of $45 per Standard loan, $60 per MERS loan, or $150 per performing Bankruptcy or Forbearance Plan loan. Call for reduces fees on bulk transfers. Loans in Bankruptcy are serviced and charged as two loans: a pre petition loan and a post petition loan. Data entry fee to reset any Loan terms, including Disbursements and Assignments of new Lenders, after a Loan is set up is $45 per instance. Transfer of servicing from FCI to another entity (excluding payoffs) is $25 per loan. Servicing fees and hard costs are paid by client as incurred (no markup on hard costs), or paid from a joint Reserve Checking Account funded by the client. Hard costs primarily include payment of taxes, liens, Attorney fees, Trustee fees, and Municipal charges.
Optional ESCROW/IMPOUNDS service: When the borrower's monthly payment on a first position loan includes amounts for the payment of Property Taxes and/or Hazard Insurance, FCI will collect and hold those proceeds in a trust account and disburse the scheduled payments to the respective authority as scheduled. The fee is $25 per month per loan and will be added to the monthly loan servicing fee and prorated to the respective Lenders.
Fees Overview:
| Loan Setup |
Fee |
| Standard Loan | $45 (One Time) |
| MERS Loan | $60 (One Time) |
| Performing, BK and Forbearance Plan Loan | $150 (One Time) |
| Data Entry Loan Reset | $45 (Per Instance) |
| Service | Monthly Fee per loan |
Monthly Fee for multiple Lenders, billed equally |
|---|---|---|
| Collection for Delinquent loans | $95 | - |
| Servicing for Performing loans | $30 min | $15 each |
| Collection for Unusual and very large loans | Negotiation | Negotiation |
| Optional Escrow/Impounds service on performing loans | $25 | - |
Geographic Area
Specialty Loan Servicing is available throughout the nation.
For questions or additional information, please CLICK HERE.
