Tax
What is our busiest quarter of the year? How much did we disburse in taxes during this time in 2024?
4th Quarter
~$7.5B
When is flood insurance required?
When a structure is located in a mandatory flood zone (A or V)
How can a homeowner send in Loss Draft Documentation and check the status of their claim?
Proctor Portal: https://www.myinsuranceportal.com/
What does PMI stand for and who does it protect?
Private Mortgage Insurance (PMI)
PMI protects the lender, not the borrower, in the case of default.
What kind of schedule is used for annual EAs?
State schedule
Bonus - How is the state order determined?
When does our responsibility for paying taxes begin?
30 days after we acquire the loan
What is the best method for a homeowner to send in insurance docs?
Proctor Portal: https://www.expressinsuranceinfo.com/2919836
When is a claim considered monitored?
Loan is current at date of loss and claim total is over $40,000
Loan is delinquent at date of loss and claim total is over $5,000
What is the difference between PMI and MIP?
PMI = Private Mortgage Insurance that is required for conventional loans when the original LTV is greater than 80%
MIP = Mortgage Insurance Premium that is mandatory for FHA loans
How is the shortage spread determined?
Investor Spread Matrix
What will happen if we don't pay property taxes in a timely or accurate manner?
Tax Sale
Lien position can be lost
How long is the LPI letter cycle?
45 days
What are the documentation requirements for a monitored claim?
Claim check endorsed by homeowner
Adjuster’s Report from insurance carrier
What are the 3 different ways PMI can be removed?
1.) Borrower Requested - Original Value
2.) Borrower Requested - Current Value
3.) Automatic Termination
What are 3 reasons why Escrow can't be removed?
Payment History
LTV - Bonus: How is the LTV calculated for removal?
FHA loan
SFHA closed after 01/2016
Forced Escrow
Modification
What are the 2 methods we use to set up tax contracts?
ATSU: Accelerated Tax Line Setup
Tax Line Pull
What is the difference between a Master Condo Policy and a unit owners policy?
A master condo policy covers the building as a whole and shared amenities. A unit owner policy covers the interior of the individual unit
When is a claim considered a stamp and go?
Loan current at date of loss
Claim total under $40,000
When is a loan eligible for MIP to be dropped from an FHA loan?
***Bonus points for same question but USDA loan***
Original LTV is greater than 90% = Never, MIP is required for the life of the loan
Original LTV is 90% or less = When the original Loan-to-Value (LTV) ratio reaches 78% OR 11 years, whichever comes first
What must occur prior to an EA to correct a Tax/Ins line?
A request must be sent to the Tax/Ins group BEFORE requesting an EA
What happens when a non-escrowed borrower fails to pay their property taxes?
Taxes will be force-placed to escrow.
A letter will be sent to the borrower, offering 30 days to pay. If the borrower fails to pay, taxes will be forced-placed to escrow.
How early can a homeowner’s preferred policy be paid?
Once renewal information is received, payments for preferred policies can be prepped as early as 30 days in advance.
When can loss draft funds be used to pay the loan off?
When the LD funds are sufficient to pay the loan off in full and the homeowner sends in a written letter of intent requesting the funds be used for the payoff.
What are the LTV thresholds to remove PMI using the current value method?
FNMA and FHLMC:
75% or less, if the seasoning of the mortgage loan is between two and five years.
80% or less, if the seasoning of the mortgage loan is greater than five years.
80% or less, if the seasoning of the mortgage loan is less than two years, AND the property has had substantial improvements made since loan origination.
What is the required minimum balance?
Cushion
Bonus - How is it calculated?