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 HomeStandard Loan Servicing     June 24, 2018  
 
Loan Servicing
 
 
Standard Loan Servicing
 
 
Specialty Loan Servicing
 
 
Mortgage Fund Administration
 
 
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General Fee Schedule
 
 
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Secured Investments
 
 
Buy/Sell Loans
 
 
Borrower Contact & Options to Avoid Foreclosure
 

For Newly Originated & Performing Loans


Start Servicing

 




Broker earns a
Spread Servicing Fee


Minimum 5,000
Active Loans





Very Short Term 

 



Residential Loans
Commercial Real Estate
Consumer Real Estate
Land
Prime
Manufactured Housing
Construction
Sub Prime
Fixed
ARM
HELOC


NOTE:  FCI will not service Negative Amortization (Neg Am) Loans, Daily Simple Interest Loans (interest accrual method from date received to date received), or any Notes that charge Interest on Interest.  This with the exception of:  Lender agrees to let FCI service the Loan as a regular or partially amortized Loan or as an interest only Loan with no negative amortization. 


*A complete Loan Servicing Setup Package must be received to start servicing.

*The Setup Fee is due at the time of Setup, with all documents/information, and is non-refundable.

*Missing documents/information requested by FCI must be provided within 30 days of initial Boarding or the Loan will be Deboarded.

*Loans can be prelim Boarded with copies of UNRECORDED documents, but copies of required RECORDED documents (Deed, Mortgage, Assignments, etc.) must be provided within 60 days.



LOAN SETUP FEES
(All Programs)
LOAN SETUP for Fixed Rate, Single Lender, non escrow/impounded $55 per Loan for 1 - 9 Loans
$30 per Loan for 10+ Loans submitted at one time
LOAN SETUP for more than one Lender Add $10 per Lender
LOAN SETUP for ARM/HELOC - Performing Add $5 per Loan
LOAN SETUP for ARM/HELOC -  Non-Performing Add $15 per Loan
LOAN SETUP for Loans with Escrow/Impounds Add $15 per Loan
LOAN SETUP with Default Rate set in activation mode Add $15 per Loan
LOAN SETUP for Active Bankruptcy, Forbearance Plan, Complex Loans & Complex Loan Modifications $150 per Loan
LOAN SETUP for Partial Note Sale (Hypothecation) Loans $75 per Loan

NOTE: For a Transfer of Servicing, after your Setup Contact receives the Setup Form (Transmittal Form 2) along with the requested items, there will be a minimum 15 day interim (wait) period once the Goodbye Letter has been approved.  There is no activity and no new information your Setup Contact can give you during this period.  You will receive a Boarding Notice Email when the Loan is boarded.                                  

COVERED LOAN (Dodd Frank) in BANKRUPTCY:  All Covered Loans (Loans secured by a Consumer/Borrower Primary Residence) with active Bankruptcy cases (Chapter 7, 11, 12, 13) must be on the Full Collection Servicing Program ($95 base/month) so FCI as Servicer can create/send required statements compliant with CFPB and Bankruptcy Court rules.

Loans with active Bankruptcy cases may be on alternative Servicing Programs in the following circumstances only: (1) HELOC Loans, (2) Business Purpose Loans, (3) Debtor indicates intent to surrender property in Bankruptcy filings, (4) Debtor indicates intent to lien strip the property and/or Bankruptcy Court has ordered the lien stripped for purposes of the Bankruptcy, or (5) the automatic stay does not apply to the property.

COVERED LOAN (Dodd Frank) FORECLOSURE PREVENTION ALTERNATIVES (FPAs) Servicer Response Fee to Borrower/Consumer written loss mitigation applications:  If the Lender on a Covered Loan DOES NOT OFFER FPAs, there is a $45 fee for FCI to produce and mail a combined acknowledgement/response letter informing the consumer no FPAs are offered by their Lender.  If the Lender on a Covered Loan OFFERS FPAs, there is a $150 fee for the Servicer required response to written Borrower/Consumer loss mitigation applications.  FCI will produce and mail all correspondence required to respond to the written Borrower/Consumer loss mitigation application.  This process requires up to 10 written communications, compliance timeline tracking, and immediate Servicing File progress notation.

NOTE: The Servicer is accountable for all aspects of Loan servicing compliance, including loss mitigation compliance, and will not agree to Lender requests to answer written loss mitigation applications themselves.  On verbal loss mitigation discussions between Consumers and their Lenders, without written Consumer loss mitigation applications received by FCI or the Lender, the Regulation X §1024.41 process is not required.  However, the Lender must keep FCI informed of all communication content and outcomes.  Lenders on Specialty Servicing Full Collection program are not subject to these Covered Loan response fees.

Notice for Delinquent Loans:  It is standard in the industry for the Investor/Lender to go to a forced placed Hazard Insurance provider, check Property Taxes through public records or use a Tax Service, and (if applicable) file a Request for Notice of foreclosure with any senior lien holders.  FCI offers Insurance Tracking as an option within its servicing and access to deeply discounted force placed Hazard Insurance.

Notice for Performing Loans:  When the Borrower's monthly payment does not include Escrow/Impounds for Property Taxes and Hazard Insurance, it is standard in the industry for the Investor/Lender to file a Loss Payee Notice with the insurance company, check for payment of taxes once a year through public records or use a Tax Service, and (if applicable) file a Request for Notice of foreclosure with any senior lien holders.




STANDARD BASIC Loan Servicing PROGRAM FEES
(For Newly Originated and Performing Loans)
PAYMENT PROCESSING Base Fee
(Loans up to $400K)
$15 per Loan/Month/Lender
PAYMENT PROCESSING
(Loans over $400K up to $1M)
Add $10 per $100K or portion thereof, ($1M = $75)
PAYMENT PROCESSING
(Loans over $1M)
$75 at $1M plus $20 per $M (or portion thereof), or $15 Loan/Month/Lender (if greater)
ARM LOANS Add $5 per Loan/Month
HELOC LOANS Add $5 per Loan/Month
COVERED LOAN (Dodd Frank) COMPLIANCE on Performing Loans that become 25 days delinquent Add $20 Loan/Month for 2 Months
ESCROW/IMPOUNDS service included Add $15 per Loan/Month for 1-2 entities (taxes & insurance)
Add $2.50 per Loan/Month per entity over 2 entities (city, county taxes)
LOAN RESET for Data Entry $55.00 per Loan for 1 - 9 Loans
$30 per Loan for 10+ Loans submitted at one time

On this program FCI is the Sub-Servicer acting at the direction of its Lender Clients (Owner of the Notes) for Newly Originated Loans, Performing Loans and Performing Loan Pools.  Standard Basic Loan Servicing is an automated Payment Processing program which includes Late Notices, but under this program FCI does not perform collection calls and loss mitigation services, except as is required for regulatory compliance.  

This program consists of Payment Processing, Basic Collection, and Default Servicing Option to transfer the Loan to Specialty Loan Servicing Full Collection program for collection and loss mitigation services.  There is a one time Loan Setup Fee (per the above Fee Schedule) due at Setup of $55 per Loan for 1-9 Loans or $30 per Loan for 10+ Loans submitted at one time, add $10 per additional Lender, add $5 per performing ARM/HELOC, add $15 per delinquent ARM/HELOC, add $15 with escrow/impounds, add $15 with activated Default Rate.  Loan Setup for Active Bankruptcy, Forbearance Plan, Complex Loans and Complex Loan Modifications is $150 per Loan.  Loan Setup for Partial Note Sale (Hypothecation) Loans is $75 per Loan. Loans with an Active 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 $55 per instance, reduced to $30 per Loan if 10 or more are reset at one time.  Transfer of Servicing from FCI to another entity (excluding payoffs) is $90 per Loan.

COVERED LOAN (Dodd Frank) Regulatory Compliance Action Fee:  PERFORMING LOANS (Senior or Junior position) secured by a Consumer/Borrower Primary Residence (Owner Occupied) that become 25 days delinquent are subject to an additional $20 monthly charge for 2 months to fulfill mandated servicing requirements. 

Optional ESCROW/IMPOUNDS service:  When the borrower's monthly payment on a performing first position Loan includes amounts for the payment of Property Taxes, Hazard Insurance or other entities, 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 $15 per Loan per month for 1 or 2 entities and will be added to the monthly Loan Servicing Fee and prorated to the respective Lenders.

Taxes and Insurance Notice:  On loans where the Borrower's monthly payment does not include Escrow/Impounds for Property Taxes and Hazard Insurance, it is standard in the industry for the Broker or Investor/Lender to file a Loss Payee Notice with the insurance company listing the Investor/Lender at their address, and sometimes the Broker, for notice.  DO NOT LIST FCI OR USE FCI'S ADDRESS ON LOSS PAYEE NOTICES.  If FCI does receive such notices or information, FCI may forward, but is not required to forward, such notification.  The Broker or Investor/Lender can check for payment of taxes once a year or use a Tax Service, and (if applicable) file a Request for Notice of foreclosure with any senior lien holders.  FCI offers Insurance Tracking as an option within its servicing and access to deeply discounted force placed Hazard Insurance.

Payoff and Reconveyance Notice:  Regulations require the Servicer to maintain complete and current records of all loan servicing activities.  As the entity that accepts Payoff Funds, FCI is responsible for ensuring the Reconveyance is recorded according to Regulatory timelines and requirementsFCI must perform all activities involved in processing Reconveyances including recording of all related documents such as release of Assignment of Rents, and Deed of Trust.  Fees are charged according to State Code, $65 minimum (Borrower portion per State maximum), plus recording costs.    

 



The Payment Processing portion of the program includes:

.  Borrower Welcome Letters
.  Payoff Demands
.  Lender Boarding Notice Email 
.  Lender Monthly Statement of Account
.  Same Day Payment Posting
.  Daily Disbursement of Funds (after clearing)
.  Free Hazard Insurance Tracking
.  24/7 Account Access
.  Downloadable Reports

.  Optional Escrow/Impounds Service for Insurance and Taxes
.  Borrower Monthly Statement with Payment Coupon
.  Subordination Agreements
.  Electronic deposit of Funds (ACH) into Lender’s account
.  Disbursements and Draws
.  Releases and Reconveyances
.  IRS 1098 and 1099-INT Reporting
           




Basic Collection starts when the Borrower Payment is 11 days past due.  The fee is 50% of paid Late Charges (or Default Rate only if it replaces the Late Fee) on Loans to $500K, 25% on Loans $500K to $2M, 15% on Loans over $2M.

The Basic Collection portion of the program includes: 

  • 11 days delinquent send First Late Notice
  • 21 days delinquent send Second Late Notice 
  • 31 days delinquent send Third Late Notice
  • 41 days delinquent send Foreclosure Prevention Notice (on loans under CFPB enforcement)
  • 61 days delinquent send Late Notice
  • 91 day delinquent send Late Notice
  • Borrower inquiry calls handled 
  • Act as intermediary between Borrower and Broker or Investor/Lender
  • Discounted Force/Lender Placed Hazard Insurance available  
  • Notify Broker or Investor/Lender of Borrower need for refinance or modification 

Collection Option: Troubled loans in Standard Loan Servicing can be transferred to Specialty Loan Servicing Full Collection program for collection, possible modification, or foreclosure, or for High Touch Performing Loan Servicing.  Click the Specialty Loan Servicing tab for program and pricing. There is a loan reset fee at transfer.  

 




California Foreclosure processing on non Owner Occupied loans is an integral and required part of Standard Basic Loan Servicing.  National Default Servicing is handled by the Broker or Investor/Lender proactively transferring Loans to the Specialty Loan Servicing program. 

Default Servicing includes:
  • Complete Loss mitigation and workout services in Specialty Loan Servicing
  • FCI will work with the Borrower and Lender in an attempt to reach a workout, payment plan or modification
  • FCI will present Lender offered Foreclosure Prevention Alternatives to the Borrower 
  • Foreclosure process started at Lender direction subject to State and Federal regulations (such as Dodd-Frank)
  • National Foreclosure processing or coordination. NOTE: FCI coordinates all foreclosures on loans in our servicing to assure compliant processing, and the Lender/Investor can never start a foreclosure directly.
  • CA Declaration of Compliance
  • Legal Services coordination including Bankruptcy Relief and Eviction


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.

Spread:  On a Newly Originated Loan the originating Broker/Company may have a Note Rate on the Loan and a Sold Rate to the Investor/Lender. For example the note was originated at a Note Rate of 12% and is being sold to the Investor/Lender at a Sold Rate of 11% with the Broker/Company keeping 1% as additional monthly compensation (known as a Spread).  The Broker/Company will typically continue to monitor the loan and provide guidance to the Investor/Lender.  The borrower payments will typically be disbursed to the Investor/Lender minus the Spread, and the Spread will be disbursed to the originating Broker/Company minus the Loan servicing fee.

Performing Loan: FCI Servicing Program definition is any Loan that is current, one or two months delinquent, according to its original or modified terms.  Loan Servicing Tracking definition is any Loan that is paid before the passing of the grace period.

Non-Performing Loan:  FCI Servicing Program definition is any Loan that has missed the 3rd payment, or more. The known situation for each Loan needs to be disclosed.  Loan Servicing Tracking definition is any Loan where the borrower's payment is not received within the grace period.

Partial Note Sale Loans:  This is a process where the holder/owner of a performing promissory note (Primary Investor), which is usually amortized for 30 years, sells the remaining note's scheduled cash flow payments (monthly payments) to an investor (Secondary Investor) for an amount less than the current Unpaid Principal Balance of the loan, for a designated period of time (typically 8-10 years), and for an agreed upon rate of return (typically 8%-10%) to the Secondary Investor.  This can be done using a Hypothecation Agreement or by Assignment of the note.

There are three main factors needed to create a Partial Loan (Balance, Term, Rate).  (1) How much does the Secondary Investor want to invest (Balance of Note Bought)?  (2) How long do they want to have their money invested (Term of the Investment)?  (3) What rate of return (Rate) are they looking for on this investment?

FCI has software specifically designed for servicing Partial Note Sale situations.  Your Customer Login will show cash flow and balances for each Investor, as well as track and display the separate amortization schedules and maturity dates. 

A critical success factor when creating a Partial Note Sale is to be sure you have a seasoned, well performing note.  If not, then many serious problems could arise.

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.

Compliance Notice:  Every Servicer and Loss Mitigation company must have Federal and State Licenses/Registrations in their company name at their specific address.  For your protection, check this at www.nmlsconsumeraccess.org; enter the company name to get the Federal ID, then click on the company name to get the State IDs.



 

 
 
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