How/when mortgage payments applied

[Roselady]

What is the name of your state? Illinois

When does a mortgage servicer have to apply the payments made to them?

a) Date that certified funds or western union quick collect is recieved?

b) When ever their understaffed office workers get around to depositing the certified check or acknowledge the western Union Quick Collect

I have heard of them holding a check until it clears---but these are either certified checks (guarenteed) or money deposited directly into their account via quick collect. Can they really hold payments for a week before they post it to your account?

What laws are involved as to WHEN they have to post the payment as being made? I'm willing to search & learn--but I need a start.

Thanks

 

[seniorjudge]

"Can they really hold payments for a week before they post it to your account?"

Yes, they do this all the time.

Is it legal?

I do NOT know but I hope someone else knows because I am subscribing to this thread to see if lenders have a leg to stand on for this very irritating and quite expensive practice.

 

[Roselady]

"Can they really hold payments for a week before they post it to your account?"

Yes, they do this all the time.

I kinda know that. I have one of THEM servicers.

Is it legal?

I do NOT know but I hope someone else knows because I am subscribing to this thread to see if lenders have a leg to stand on for this very irritating and quite expensive practice.

I have searched around a bit & came to a halt. I really don't know where to start. I could search state laws, but which state? them or me? I know credit cards have very strict laws about when they post money to your accounts. Do servicers actually have to follow these rules? They say not.

They split payments to cover these fees. leaving a shortfall in P&I amounts- then you are in default & a whole new set of rules come into play. They have a hey day then!

I pretty much have a good understanding of the whole process from origionation, thru pooling & securitization. I have my prospectus, more importantly the pooling & servicing agreement. But I have no laws or rules that state how they are required to do it.

Oh- Another question: when trying to find the governing body to your servicer- does it go by the origionator? Who actually owns the loan? Or the servicer themselves? What if the owner of your loan is the servicer? what if the FDIC seized your loan from a bank & sold you?

OK- I'll just ask. WHO REGULATES EMC MORTGAGE CORPORATION? Irving, Texas.

 

[seniorjudge]

http://www.tsld.state.tx.us/

Call these folks and ask them your questions.

Let me know what they say.

They may tell you to go jump in the lake, but I still want to know, okay?

 

[Roselady]

OK I did that.

They didn't tell me to jump in the lake- he actually was prying me for information & insisted that I fill out an official complaint form, which I have printed & will make copies of my proof & send it off.

EMC is classified as a Mortgage Bank- so they fall under the Savings & loan (that's news to me) They do not provide the regulations for posting of payments, or any day to day operations. They are more or less regulators of accounting of the banks- not how the banks do their accounting for us.

He said he thought it was HUD that was the Federal governing body that set the standards/guidlines as for their dealings. I have been all over the HUD site in the past & haven't found anything that deals with their posting of payments in a timely fashion. I will try it again.