Mod 3 - Custodial Accounts/Payment Processing Oversight

Question 1

Name all 3 of the Custodial Accounts?

Answer 1

Central P&I Custodial Account (Custodial Clearing)

P&I Custodial Account

T&I Custodial Account

Question 2

Please describe your escalation process to manage aged investor reporting and custodial bank reconciliation items? How often are these items reviewed?

Question 3

What are the applicable adding Payment Processing Oversight?

Answer 3

1. The Truth-In-Lending Act (TILA)
2. The Dodd-Frank Bill of 2010

Question 4

How Often will you monitor your custodial Bank Account Ratings?

Answer 4

Quarterly

Question 5

Into which bank account are any unapplied/suspense or unidentified funds deposited?

Answer 5

T&I Custodial Account

Question 6

Into which bank account are hazard insurance loss draft funds deposited?

Answer 6

T&I Custodial Account

Question 7

Please describe your quality assurance or quality review process to review custodial account reconciliations for accuracy. How often are these reviews conducted?

Question 8

What is the institution rating of the depository that will hold the custodial funds for you?

Question 9

What is the Central P&I Custodial Account used for?

Answer 9

An account where all received payments that are Funds are received payments

Question 10

What is the P&I Custodial Account used for?

Answer 10

1. Remit Funds to Fannie Mae on Remittance Date
2. Remove Accounts that have been deposited in error
3. Remove fees, charges, funds due related to servicing transfers, and other amounts that are deposited into the account on a temporary basis
4. Remove Interest earned on Interest Bearing Accounts
5. Clear and Terminate the account

Question 11

What is T&I Custodial Account used for?

Answer 11

Can only make withdrawals for the following reasons:
1. Ground rents, taxes, assessments, water rates, mortgage insurance premiums, condominium charges, fire and hazard

2. Insurance premiums or other items constituting escrow payments
3. Refund any mortgagee any funds of excess of the amounts required
4. Restoration or repair of the mortgaged property
5. Pay any interest paid on the funds deposited in the escrow account to mortgagor