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Loan Servicing Checklist

Use this checklist as a guide to put together a complete Loan Servicing Setup Package for submission AFTER THE LOAN IS CLOSED OR PURCHASED. Read each item carefully and include this Form in the complete package sent in. Remember, we can only accept and set up Loans that come in as one Complete Setup Package per Loan (unless this is a bulk transfer using our Loan Boarding Template).

Loan Servicing Setup Form

AFTER THE LOAN IS CLOSED OR PURCHASED, the Setup process starts when FCI receives this Form and all requested and needed information, (contact Setup for Bulk Transfers). NOTHING CAN BE DONE UNTIL THIS IS RECEIVED BY SETUP.  

At the top of the Form “PROGRAM SELECTION,” mark your selected starting program (Performing or Non-Performing) and also mark your selected “change status” Program.  

Completely fill out, print and then submit this Form for each Lender on the Loan along with the following:

• For a NEWLY ORIGINATED LOAN include:
• Loan Servicing Checklist (Transmittal Form #1)
• Copy of the Note
• Copy of the Deed/Mortgage
• Borrower ACH Form #6 (Signed at closing)
• Foreclosure Prevention Alternatives Form #11 (required Federal Form)
• Optional Insurance Services Form #12, only if requesting such service for all Loans
• Odd Day’s Interest check and/or Prepayment check (if any) made out to FCI

For an EXISTING LOAN also include:

• Copy of RESPA-NOTICE OF SERVICING TRANSFER-Goodbye Letter
• Copy of all past and present Assignments
• Loan Modifications (if any)
• Payment History (required)

Please understand that this is a highly Regulated process, and LOANS CAN ONLY BE BOARDED WITH A COMPLETE SETUP PACKAGE.  We have no choice but to REJECT Incomplete Setup Packages.  If this happens, simply resubmit the COMPLETE SETUP PACKAGE when you have the missing needed information.

If you overnight the package, include a check for the one time Loan Setup Fee per the SETUP FEE schedule box on this Form 2.  If you email or fax the package, we will call for the Loan Setup Fee on a charge card. Contact us for Bulk Transfer instructions.  If there is a change of ownership (Lender) regarding this loan, then see Transmittal Form #4.  If the Loan does not have “Send Payments to FCI” in the documents, then do Transfer of Servicing Form 3 to take out the existing Servicer and put in FCI.

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 there is no new information your Setup Contact can give you during this time.  The Lender will receive a Boarding Notice Email when the loan is boarded.

RESPA-NOTICE OF SERVICING TRANSFER-Goodbye Letter

This Form is mailed to the borrower by the current Servicer to transfer servicing on an existing loan to FCI. It is not needed to start servicing a new loan. Date and mail the letter at least 15 days before the selected “Date of Transfer”.  The selected “Date of Transfer” must be at least 15 days from the mailing date. IF THE “DATE OF TRANSFER’ IS INCORRECT, YOU WILL HAVE TO RESEND THE NOTICE.   Once you enter the “Date of Transfer”, the other “Date of Transfer” fields may auto fill in the rest of the form with the same date depending on your Browser (otherwise manually enter them).  Make the obvious changes in the active fields.  Print out two Forms so you have one to send the Borrower and one for your file. Regardless of the Date of Transfer of Servicing in the Transfer of Servicing letter, consider the Loan transferred when it is sent to FCI. Any Borrower payments received after the Setup Package has been sent to FCI should be endorsed and forwarded to FCI for processing.  Note: this Form is for informational purposes only; please contact your attorney prior to use.

 TILA Ownership Transfer Notice (for transferring full or partial ownership)

Effective May 20, 2009 when an existing Loan secured by the principal dwelling of a consumer is purchased or assigned in full or part, the new Investor/Lender (Creditor) must notify the borrower of the transfer of ownership within 30 days. It is standard practice to send this Notice to the Borrower when ownership is transferred on any type of Loan.  Use this checklist to provide the information needed for FCI to send out the Truth-In-Lending Act Ownership Transfer Notice. We can only do this Notice for Loans that are set up in our Loan Servicing system within 20 days of the date on the Assignment.  Include a processing fee of $45 per Loan for 1-9 Loans, or $25 per Loan for 10+ Loans submitted at one time, when submitting the completely filled out checklist.

Loan Servicing Direct Deposit Form

This Form is used to set up the automatic deposit (ACH) of funds for Note Rate/Sold Rate or Broker Servicing Fee from Loan payments into a Broker or Lender’s bank account. This form is not needed for an Lender whose banking information is already included on the Loan Servicing Setup Form.

Foreclosure Prevention Alternatives Form

Lender/Investors use this Form to specify if Loans require the Foreclosure Prevention Alternatives notice to delinquent Borrowers/Consumers, or are exempt from the required notice.