Loan Servicing

Servicing Brochure – Click to Download

We offer Investors the following services to manage their loan portfolio

Specialty in Junior Liens

We have extensive experience in working junior liens, helping you manage your risk and working with your borrowers.

Performing Loan Servicing

We can handle your performing loan portfolio at a fixed cost per loan, so you’ll know your monthly and yearly budget by the number of loans we are servicing.

Wrap Loan Servicing

We can handle your performing wrap loan portfolio at a fixed cost per loan, so you’ll know your monthly and yearly budget by the number of loans we are servicing.

Escrow Services

We can handle escrow services for your loans by collecting the monthly impounds to pay taxes and insurance on behalf of the borrower.

Non-Performing Loan Servicing

We can handle your non-performing loans, making out-bound collection calls, mailing demand letters, home owner option letters per investor guidelines, hiring door knockers and occupancy inspection services at a fixed cost per loan.

Full Service Loss Mitigation

Our borrower intervention program includes skip-tracing, outbound calls by a real person, express, priority & certified mailings and a “Boots on the Ground” strategy to get the borrower to work with us on developing a win-win plan with the borrower and investor.

Foreclosure Management

We have built relationships with foreclosure attorneys nationwide whom we have vetted for value, expediency and excellence.

REO Management

We have relationships with property managers and property management resources across the country if needed.

Web Portal to view your loan activity

View your loans on the Madison web portal and see up to the minute information on your loans.  Payment History, Servicing notes, Loan balance, last payment date, next due date, loan status, payoff information all at no additional cost.

 Contact us at 877-563-4164 or via email  servicing@madisonmanagement.net to speak to us about your servicing needs.

Loan Servicing Descriptions

Madison Management Services will not service the following types of loans: NEGATIVE AMORTIZATION, DAILY SIMPLE INTEREST Loans (interest accrual method from date received to date received), or any Notes that charge INTEREST ON INTEREST Or INTEREST ON LATE FEES.

*A complete Loan Servicing Setup 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 Madison Management Services must be provided within 30 days from 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 or the loan will be deboarded.


** Residential Loans over $500k in UPB or Commercial Loans, call for pricing.

Performing Loan Servicing      $25.00/ Month

Any Loan that is current, one or two months delinquent, according to its original or modified terms

Under Performing Loan Servicing, the RESPA Hello package is sent out to the borrower at the time of boarding. Each loan is assigned to an agent who will monitor and make sure that the borrower continues to make their payments on time. The agent will make contact with the borrower to remind them of when the payment is due, and will also set them up on ACH Payments if so desired.  Monthly statements are sent out to the borrower 15 days before the due date.  Borrowers who missed payments for  two (2) consecutive months, will automatically get switched to Non-Performing.

Wrap Loan Servicing      $45.00/ Month

Like Performing Loan Servicing, Madison will collect payments from your borrower and disburse payments to your underlying mortgage.  Note Holder will provide servicer with a copy of current mortgage statement for underlying mortgage. Payments to the underlying mortgage will be made by servicer via check.  Please allow at least 60 days to setup payment.

*See Wrap Loan Servicing tab for additional information

Non-Performing Loan Servicing        $95.00/ Month

Any Loan that has missed the 3rd consecutive month, or more.

Under Non-Performing Loan Servicing, the RESPA Hello package is sent out to the borrower of the delinquent loan at the time of boarding. Each loan is assigned to an agent who will work with the borrower at the direction of the Lender to turn the delinquent loan into a performing loan, by restructuring the loan or by foreclosing. Monthly statements are sent out to the borrower 15 days before the due date. Late notices are sent to the borrower at 15 days, 31 days, and 45 days delinquent.  After the loan has been restructured and the borrower has made payments for three (3) consecutive months, the loan will automatically be switched to the Performing Loan Servicing Program.

No Collections Loan Servicing        $45.00/ Month

North Carolina Excluded

Loss mitigation performed by client or Third-party service

Under No-Collections Loan Servicing, the RESPA Hello package is sent out to the borrower at the time of boarding with correspondence address to client or third party and payment address to Madison. Monthly statements are sent out to the borrower 15 days before the due date. Borrower will be directed to contact client or third-party service for loss mitigation, payment arrangements, or other questions about their loan. Madison will provide basic loan information known at the time, such as unpaid balance, next due date, lender name and contact information.

Performing Loan Servicing Fees

  • Loan Setup

  • for Fixed Rate, Single Lender, non-escrow

  • Includes tax and insurance tracking service

$150 per loan
$130 per loan for 10+ boarded at one time

$50 per junior lien (no tracking)

Loan Setup for more than one Lender

Add $20 per additional Investor/Lender

Loan Setup for ARM/HELOC

Add $5 per loan

Loan Setup for Partial Note Sales

$75 per loan

Performing BK or Forbearance Plan setup

$150 per loan

Complex Loan Setup

$125 per loan

Performing Bankruptcy Plan

$15 per loan/month/Lender

Variable rate loans (HELOC/ARM)

Add $5 per loan/month

Optional Escrow Processing

$10 per loan/month

Add $2.50 per Loan/Month per entity over 2 entities (city, county taxes)

Loan Reset fee

See Additional Servicing Fees tab

Late Fee

50-50 Split between Servicer & Lender

Performing loans secured by a borrower’s primary residence that become 25 days delinquent will be subject to an additional $20 per month charge for 2 months to fulfill Dodd-Frank requirements.
Optional Escrow Processing:  When a borrower’s monthly payment on a performing first mortgage includes amounts for property taxes, home owners insurance and/or HOA fees, MMS will collect those funds into a separate account and disburse the funds to the appropriate party when they become due.  The fee is $10 per loan per month and will be added to the monthly servicing fee.

 

* Fees subject to change

Payment Due Date

Please consider that if the underlying mortgage and the new buyer have the same payment date, you risk a short turnaround time for the underlying mortgage payment to be made. We recommend a different due date from underlying mortgage, at least 15 days prior to underlying mortgage due date.

(funds sent to the servicer must clear before they are disbursed. Money orders, Cashier’s Check, and Cash are given immediate credit. A personal check is given a 5 day hold to ensure the funds clear before funds will be disbursed).

Payment Changes

The Note Holder should provide servicer with copy of yearly escrow analysis from underlying mortgage. If there is a change in payment, who will decide on the new payment plan action, the new buyer or the note holder?  In cases where there is a shortage in escrow, mortgage companies offer several options to handle the change. Who will decide on what option to take?

Service does not hold escrow account we just “pass through” the escrows to the underlying mortgage.

Past Due Payment

The servicer will contact the Note Holder once the grace period has come. The Note holder can wait until payment come in or will have make payment and get “reimbursed” for payment.

Late Fee

Consider the amount of late fee you will collect. In most standard servicing agreements, the late fees are split 50/50 between servicer and note holder. Ensure that the late fee covers the late fee for the underlying mortgage completely, after servicer has collected their portion.

Insurance

Will the current policy be transferred to the new buyer? Will the new buyer have to obtain their own policy?

Recommend that current policy remain intact and add new borrower as additional insured.

Prepay Underlying Mortgage

We recommend that the payment to underlying mortgage be 1 month ahead. This will help in the event that payment to servicer is late or delayed.

Wrap Loan Servicing Fees

  • Loan Setup

  • for Fixed Rate, Single Lender, non-escrow

  • Includes tax and insurance tracking service

$225 per loan

Loan Setup for more than one Lender

Add $20 per additional Investor/Lender

Late Fee

50-50 Split between Servicer & Lender

 

* Fees subject to change

Full Collection Servicing fees

 

Default loan servicing with full collections works to turn your non-performing assets into performing assets through loan modifications, forbearance payment plans, facilitating the foreclosure process or obtaining a deed from the borrower. Our staff is trained in collections, workouts, foreclosure, skip tracing and working with third parties to help you maximize your investment.

  • Loan Setup

  • for Fixed Rate, Single Lender, non-escrow

  • Includes tax and insurance tracking service

$150 per loan
$130 per loan for 10+ boarded at one time

$50 per junior lien (no tracking)

Loan Setup for more than one Lender

Add $20 per additional Investor/Lender

Loan Setup for ARM/HELOC

Add $150 per loan

Additional Monthly Servicing fee:

Add $20 per Lender per loan

Variable rate loans (HELOC/ARM)

Add $5 per loan/month

Optional Escrow Processing

$10 per loan/month

Add $2.50 per Loan/Month per entity over 2 entities (city, county taxes)

Loan Reset fee

See Additional Servicing Fees tab

Optional Escrow Processing:  When a borrower’s monthly payment on a performing first mortgage includes amounts for property taxes, home owners insurance and/or HOA fees, MMS will collect those funds into a separate account and disburse the funds to the appropriate party when they become due.  The fee is $10 per loan per month and will be added to the monthly servicing fee.

 

* Fees subject to change

* An administrative fee may apply to certain transactions.

Monthly Loan Servicing fees

Loan Servicing Fees

Performing Loan (loans under $500,000)

$25 /month/loan

Performing Loan (over $500,000)

$70 /month/loan

$10 additional per $1,000,000

Performing Loan - High Touch

$45 /month/loan

Client Managed (no collection)

$45 /month/loan

Full Collections (non-performing)

$95 /month/loan

Chapter 13 BK Loan

$15 /month/loan

Additional Servicing fees

Loss Mitigation Fees

Field Services (door knocker)

See Additional Services

Trial Payment Plan
Trial payment plan is 3 to 6 fixed payments.

$300

Forbearance Plan negotiation and setup

$400 + $75 setup

Loan Modification negotiation and completion (simple)

$500 + $75 setup

Loan Modification negotiation and completion (complex)

$750 + $75 setup

Combo Forbearance + Loan Modification

$600 + $75 setup

Short Sale, Payoff, Satifaction of Debt, Settlement+

Minimum $1000.00 or 3% of settlement amount, whichever is greater + $150 doc fees.

Deed in Lieu/Cash for Keys Coordination

$175 + Attorney fee

Quit Claim deed

$150 per loan

Deferral Agreement: Defer past due amounts to bring Loan ‘Contractually Current’.

$175 per loan

Extension Agreement: Extend Loan Maturity Date

$175 per loan + recording fees

Assumption Agreement

$200 per loan

Property Preservation

$35 per occurance + Third Party fees

Reinstatement+

Minimum $500 or 3% of reinstatement, whichever is greater.

Refinance Coordination

$800

Home Owner Assistance Setup

$50 setup

* Simple Loan Modification:  Capitalizing the arrears or forgiving the arrears when restructuring a borrower’s loan with or without a reduction in principal.  This may include a partial capitalization and forgiveness of the arrears.  Example:  capitalize 50% of the arrears and forgive other 50% of arears.

* Complex Loan Modification: Whenever the loan modification is more than just a simple capitalization of the arrears, forgiveness of the arrears or reduction of principal.  This includes adding a balloon payment provision, collection of advances over time at the same or different rates of interest.  Step modifications, where the amortization schedule will change over time, thereby changing the interest rates and monthly payment amounts, assuming the borrower made all the previous payments.  Waiving arrears over time or special provisions for the waiving of arrears in multiple increments depending on the borrower payment history.

Foreclosure Fees

Foreclosure Coordination

$300 per loan

Legal document review and execution (Amounts due & owing, Foreclosure Affidavit, etc.)

$100 per loan

Foreclosure Registration in required States (NC, etc.)

$150 per loan


Document Fees

Assignment Preparation (must have unbroken assignment chain)

$125 per loan

Assignment Recording

$75 + filing fees per loan

Allonge Preparation (attached to note)

$50 per loan

Demand for payment Letter sent by Madison (not pre-foreclosure notice)

$100 per loan

Lien Release

$150 + filing fees per loan

Maturity Notice: preparation and mailing

$45 per loan

Payoff Request: Lender pays

$15 per loan

RESPA Dispute Response QWR

$400 per occurrance

Settlement Agreement drafting only

$500 per loan

TILA ownership transfer

$45 per loan; $35 for 10 or more at one time.

Enter text descriptions related to documentation fees or any additional information that may be required.

Additional Fees

BPO

$165 Exterior
$225 Interior

Property Inspection

$20.00 - $45.00

Appraisal Fee

$195.00 - $850.00

Door Knocker

up to 2 visits - $75.00
up to 3 visits - $90.00

Servicing Transfer out: proof of new servicer license required

$75 per loan

Servicing Transfer out less than contract minimum.

$300 per loan

Escrow/Impounds research if needed

$150 per loan

Escrow/Impounds Added to an existing loan on any program

$50

Forced Placed Insurance (FPI) administrative fee (annually)

$50

Late Fees %

50% of paid late fee

LITIGATION/FORECLOSURE APPEARANCE COSTS

Staff $150/hour & Mgmt $350/hour or portion thereof (Requires $4500 retainer deposit)

Loan Reset (modification, deferral, forbearance, HELOC reset, complex loan terms)

$150

Title Report (O&E Report)

$150

Questionnaire completed by Madison for any reason

$150

REO Management

$95 loan/month

VOM (Verification of Mortgage)

$25 from Requestor or Lender

+ Settlement includes lump sum payoff, graduated payoff, reinstatement amounts

* Fees subject to change