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Frequently Asked Questions for Servicing Home Loans

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What are the requirements for monthly remittances of payments collected from the borrowers?  Top of Page

  • All servicer cutoff dates will be the last day of the month.
  • The servicer must transmit the exact amount less the appropriate service fee when:
    • the total amount collected is greater than $2,500 or
    • at least once a month if the total amount collected is less than $2,500.
  • The final remittance must be made within three (3) business days following the end of the month.
  • Separate transmittals are required - do not combine collections from two different reporting months into one transmittal.

How are remittances transmitted to WHEDA?  Top of Page

The SOAR (Servicer Online Automated Remittance) system is used for both regular payments and loan payoffs.

What are the reporting requirements?  Top of Page

Monthly data must be e-mailed to WHEDA as an attachment within three (3) business days following the end of the month. The e-mail should be sent to Wheda.sv@wheda.com. The information can either be in a specified spreadsheet format or a specified comma delimited format. Both record layouts are provided by WHEDA and transmissions must follow the layout exactly.

What files and records are required to be maintain by the servicer?  Top of Page

The servicer must maintain an individual file with WHEDA's loan number for each mortgage it services for WHEDA. The individual file must include:

  • A copy of the loan origination documents including copies of the Note, recorded mortgage and assignment, title insurance, mortgage insurance, hazard insurance, etc.
  • Current hazard insurance declaration page and evidence of payment of property taxes.
  • Any other pertinent servicing information.

The servicer must also maintain permanent mortgage account records with WHEDA's loan number for each mortgage it services for WHEDA. The records must include:

  • All transactions that affect the mortgage balance (amount and due date of each payment, when the payment was received and how the payment was applied).
  • The financial status of the mortgage (the latest outstanding balances for principal, escrow deposits, advances and unapplied payments).
  • Any overdrafts in the escrow deposit account.

How is the monthly service fee calculated?  Top of Page

The servicer is entitled to collect a monthly servicing fee equal to the outstanding principal balance multiplied by the monthly service fee factor for all loans for which a payment is made by the borrower. The formula is:

(Outstanding Balance) x (Service Fee Factor) x (# of days since last payment) divided by 30

The Service Fee Factor is equal to .0003125 for Loan Numbers 1 thru 13000 and .0002083 for Loan Numbers 13001 and above.

Is a servicer allowed to collect late charges?  Top of Page

Yes - the servicer is entitled to any late charges provided for in the mortgage note as long as they do not exceed the maximum allowed by state. Late charges may be collected on any payment made more than 15 days after it is due.

How is servicing transfered?  Top of Page

Transfers between servicers must be pre-approved by WHEDA and must not adversely affect insurance coverage such as private and pool mortgage insurance. To assure we have sufficient time to review a proposed transaction and to give servicers time to receive our written authorization before the transfer's proposed effective date, the two servicers must submit a written request for approval to WHEDA 60 days before the proposed effective date.

What is a servicer required to do if a borrower decides to payoff?  Top of Page

  • All payoffs must be reported to WHEDA via the SOAR (Servicer Online Automated Remittance) System.
  • Funds received by the servicer for the payoff of a mortgage need to be remitted to WHEDA no later than the day following the date of the payoff.
  • Upon receipt of the funds WHEDA will return the original Note stamped "Paid in Full" to the servicer.

Who should the external auditors contact about audit confirmations?  Top of Page

The requests for audit confirmation should be addressed to:

WHEDA
Attn: Servicing Manager
P.O. Box 1728
Madison, WI 53701-1728

All requests should include the following information:

  • Servicer's name and address
  • Servicer's indentification number
  • Name and telephone number of the auditor's contact person
  • The “as of” date for the confirmation

 
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