Mortgage Servicing (Periodic Statements) Flashcards
What information does a periodic statement provide to borrowers?
Amount due, past payment breakdown, transaction activity, contact and account information.
When is a periodic statement sent to borrowers?
After the payment due date or courtesy period for the previous cycle.
What type of loans are exempt from periodic statement requirements?
Reverse mortgages, timeshare plans, small servicer loans, fixed-rate loans with coupon books.
When must interest rate adjustment notices be sent for ARM loans?
210-240 days before the first adjustment and 60-120 days before each subsequent adjustment.
What details must an ARM interest rate adjustment notice include?
Adjustment terms, new rates, payment changes, rate limits, and payment calculation.
Under what conditions can a servicer substitute a coupon book for periodic statements?
For fixed-rate loans, if the coupon book provides required loan information.
What information must a coupon book include for each payment?
Payment due date, amount, and any late fee details.
When is additional information required on a coupon book?
If a borrower is 45 days delinquent.
What are two conditions for exemption from periodic statement requirements after charge-off?
Loan charge-off and suspension of further interest or fees.
How soon must a suspension of statements notice be provided after a loan charge-off?
Within 30 days of charge-off or last periodic statement.
What is an Adjustable-Rate Mortgage (ARM)?
A mortgage with an interest rate that adjusts periodically based on an index.
What does CFPB stand for and what is its role?
Consumer Financial Protection Bureau, responsible for consumer protection in finance.
What is forbearance in mortgage terms?
Allows a borrower to pause or reduce payments for a specified time.
What does LIBOR represent?
The London Interbank Offered Rate, used for interbank lending rates.
What is negative amortization?
An increase in loan principal due to insufficient payments to cover interest.
