COLLECTION ACCOUNT SERVICES
Fairfield Financial offers a collection account service to our loan clients. If we broker a loan for you, we must set up a collection account to handle the processing of payments. This benefits our lenders and borrowers in the following ways:
- For the life of the loan, we will keep track of the amount due and the amount paid, including interest and principal.
- We will send the 1099 and 1098 tax forms to the lenders and the borrowers for interest paid each year.
- We are available to lenders and borrowers if they have any questions about their accounts.
- We will remind lenders and borrowers of any impending balloon payments or payoff dates.
- We will contact the borrower if a payment is late, and assess a late fee when it is appropriate.
- If the loan is paid off or refinanced, we will provide the payoff information to the escrow company .
All payments received for collection accounts are placed in a Client's Trust account and are disbursed to the lender in a timely manner. The lender's disbursement can be either sent directly to the lender, or direct deposited to the lender's bank or other financial institution.
The borrower is expected to pay the fees associated with collection services. The prices for these services are as follows:
|Account set up fee:||$470.00 + $1.00/thousand of beginning balance|
|Monthly disbursment fee:||$12.00|
|Assumption or reassignment fee:||$200.00|
|Other account change fee (e.g. partial reconveyance, additional loan funds disbursed, interest rate changes):||$100.00|
|Account close-out fee (includes one payoff quote, one pay history and two v.o.m.s):||$150.00|
|Verification of mortgage (first two provided free):||$50.00|
|Payoff quote (first one provided free):||$100.00|
|Pay history (first one provided free):||$50.00|
|Special handling fee*:||$150.00 per hour, 1/2 hour minimum per incident|
|Verification of mortgage (first three provided free):||$50.00|
*Special handling fee includes but is not limited to:
- Special correspondence
- Efforts to maintain or keep in force or reinstate hazard insurance
- Time spent in court
- Preparation for court appearance
- Attorney consultation
- Negotiating and preparing revised agreements/arrangements
- Special efforts to notify borrower of default status
- Other research