LOAN SERVICING

BEWARE OF LOAN MODIFICATION SCAMS: Each day, scam artists posing as financial advisors and/or debt relief consultants take advantage of homeowners who face difficulty making their mortgage payments. These scammers will often make promises that seem too good to be true, guaranteeing services that will either lower a monthly payment or eliminate back debt in order to save one’s home. Warning signs include: requests to pay a fee in advance of assistance; promises to stop foreclosure; requests to stop paying your mortgage company and pay them instead; claiming to be part of a reputable agency; and, requests for your personal or financial information. Call your loan servicer if you have any questions about email, phone calls or letters you receive that offer assistance with your mortgage loan.

For more information on mortgage modification scams, visit:
https://www.consumerfinance.gov/ask-cfpb/what-are-mortgage-loan-modification-scams-en-272/
https://consumer.ftc.gov/articles/mortgage-relief-scams
https://www.hud.gov/program_offices/housing/prevent_loan_scams 

MY LOAN SERVICING

SERVICING QUESTIONS

Where do I send my first payment?

PRMG mails the first mortgage statement within 7 days of funding. Also, 10 days prior to the due date if the payment is due to PRMG, you will receive an e-mail with a link to pay via E-bill. E-bill is for interim payments only. E-bill requires the loan number and the primary borrower’s last four digits of the Social Security number.

If your loan has been transferred, PRMG and the new servicer mails a Notice of Assignment to you, which includes information on where to make your payment. For further questions, e-mail SERVICING@PRMG.NET.

Who do I call if I have questions?

Interim servicing can be reached by phone at (855) 871-2110, Monday through Friday 6am to 6pm PST or by e-mail at SERVICING@PRMG.NET.

How do I escalate a complaint?

Please e-mail SERVICING@PRMG.NET with as much information that is available. For example: proof of payments – if credit related; exemption documents or bills – if tax related; insurance policy or invoice – if hazard related, etc.… We will escalate the issue and keep you updated.

How do I get an Insurance claim check endorsed?

If the loan has been transferred to another servicer, the check must be re-issued to the new investor. If servicing was retained, the check must be sent to our servicer.

How do I get a copy of a mortgage statement?

For servicing retained, log on to your account at https://prmg.loanadministration.com. If the loan has not been sold, e-mail SERVICING@PRMG.NET.

How do I update my mailing address after I move in?

E-mail SERVICING@PRMG.NET. If the loan has sold, you will need to update the information with your new servicer.

Does my loan number change?

The loan number always changes, whether servicing retained or sold.

Can I change mortgage servicers?

No. You can’t change mortgage servicers at will. The company that owns your mortgage decides which loan servicer manages the mortgage loan they own. However, if you refinance your loan, it’s possible that your new lender may use a different company to service their loans.

Further questions?

Please e-mail SERVICING@PRMG.NET.

FOR YOUR INFORMATION

How payments are calculated

Payments for fully amortized, fixed loans, are calculated based on the loan amount, the interest rate, and an amortization schedule. Escrow is collected to cover taxes, homeowners’ insurance, optional insurance, and PMI/MIP. It is based on the upcoming year’s expected payments and disbursed as these bills come due. Your loan type can affect the amount of your payment as follows:

If your loan has been transferred, PRMG and the new servicer mails a Notice of Assignment to you, which includes information on where to make your payment. For further questions, e-mail SERVICING@PRMG.NET.

• • ARM – Adjustable-Rate Mortgage: Depending on the terms of the ARM, the interest rate may vary, and you may or may not be paying interest only for a period of time. If so, it may switch to a fully amortized payment for the remainder of the term of the loam.
  • Interest – Only Loan -Fixed Rate: This loan type has scheduled periodic payments consisting of interest-only for a fixed period at the beginning of your loan term. The loan may switch to a fully amortized payment for the remainder of the term. These loans are serviced as ARM loans beginning with ARM Plan “FX” for Fixed Rate.
  • Amortized Loan – Fixed Rate: This type of loan has scheduled periodic payments, which consist of principal and interest. Please reference the amortization schedule provided to you at the closing of your loan for more information.
  • Daily Simple Interest (DSI) Loan: DSI loans, with scheduled periodic payments, have interest accrued based on the number of days that elapse between payments being made. If a long enough time elapses between payments, the amount of interest accrued may sometimes be more than your monthly payment amount, so no money would be applied towards principal in these situations.

Types of Mortgage Insurance

Mortgage Insurance is typically required on loans where the down payment is less than 20 percent of the Original Value of the property. The Original Value of the property is defined as the lesser of the sales price or the appraised value at closing. Mortgage Insurance protects the lender if the borrower stops making payments on a loan. Mortgage Insurance may also be required depending on the type of loan or securing property. There are three main types of loans that carry Mortgage Insurance:

• • PMI – Conventional loans
  • MIP – FHA loans through the U.S. Department of Housing and Urban Development (HUD)
  • Rural Housing Service (RHS) loans are insured by the U.S. Department of Agriculture (USDA)

Private Mortgage Insurance (PMI):

PMI is insurance for a conventional loan where the proceeds are paid to the lender or investor to make up for losses incurred if you are unable to repay your loan. A PMI policy enables prospective buyers who cannot, or choose not to, make a significant down payment to obtain mortgage financing at affordable rates. You are responsible for paying the premiums.
The Homeowners Protection Act of 1998 establishes provisions for canceling and terminating your PMI based on the Original Value of the property. It also establishes requirements for disclosures, notifications, and the return of unearned premiums. It applies to single-family, primary residence mortgages closed on or after July 29, 1999 that are not covered under the Federal Housing Administration (FHA) or Veterans Administration (VA). Individual investor guidelines may provide additional options to cancel PMI based on the current value of the property.

Mortgage Insurance Premium (MIP):

MIP only applies to loans associated with FHA. The purpose of MIP is to protect the lender or investor from losses incurred if a borrower is unable to repay their loan. FHA loans typically required an upfront MIP amount that is paid as part of the closing costs of the loan and an Annual MIP that is collected and disbursed in twelve installments per year through your escrow account. Each year the Annual MIP is re-calculated by HUD. FHA loans with MIP are not covered by the Homeowners Protection Act of 1998.

Rural Housing Service (RHS):

RHS loans are through the USDA and can have an upfront and/or an annual premium. RHS loans that closed prior to October 1, 2011 have an upfront premium that insures the loan for its entire life with no annual premium. RHS loans closing on or after October 1, 2011 require an annual MIP that is collected monthly and disbursed to the USDA on an annual basis. These annual premiums are for life of loan and cannot be cancelled. RHS loans are not covered by the Homeowners Protection Act of 1998.

MIP only applies to loans associated with the FHA. The purpose of MIP is to protect the lender or investor from losses incurred if a borrower is unable to repay their loan. There are two types of MIP:

1. 1. Upfront MIP – an upfront MIP is paid as part of the closing costs of your loan. It is added to your principal balance and amortized with your monthly payments to be paid off by the end of your loan. Therefore, the full amount of MIP is paid as part of closing. (Also, loans with upfront MIP often have monthly MIP.)

   
   

   2. Monthly MIP – you pay twelve installments per year into your escrow account. Each year your rate for the MIP is re-calculated, based on the length of your loan and your loan to value (LTV) ratio. (You should also know loans with Monthly MIP often also have upfront MIP.)

Information on PMI for Conventional Loans

The Homeowners Protection Act of 1998 establishes provisions for canceling and terminating your Private Mortgage Insurance (PMI). It also establishes disclosure and notification requirements and requires the return of unearned premiums. It applies to single-family, primary residence mortgages closed on or after July 29, 1999 that are not covered by the Federal Housing Administration (FHA) or Veterans Administration (VA). The Homeowners Protection Act of 1998 requires that your PMI be automatically removed when you have reached the date when the principal balance of your mortgage is first scheduled to reach 78% of the original value of your home. Your payments must also be current at that time. Additional payments towards principal will not influence the date of automatic removal, though you may be able to request cancellation, provided the requirements of borrower-requested removal have been met.

Please note: the Homeowners Protection Act of 1998 only applies to single-family, primary residence mortgages closed on or after July 29, 1999.

How to Calculate Loan to Value Ratio

A loan-to-value ratio (LTV) is the percentage of your principal balance as compared to the original value of your home. Original value is defined as the contracted purchase price or the original appraised value of your property at closing, whichever is less. To calculate your LTV, divide your current principal balance by the original value of your home (expressed as a percentage). Original value is defined as the contracted purchase price or the original appraised value of your property at closing, whichever is less.

Example:
Purchase price: $100,000
Original appraised value: $150,000
Current loan balance: $90,000
90,000 / 100,000 = 90% LTV

Interest Paid in Previous Year

The IRS Form 1098, Mortgage Interest Statement, tells how much interest is collected (including points) that we are reporting to the IRS. The only items that are reported directly to the IRS are points and interest. Points are reported only when applicable. Mortgage interest on first and second homes is generally deductible for taxpayers who itemize their deductions. Please contact a tax/financial adviser or the IRS for more information.

Contact the IRS at: 800-829-1040. Website: www.irs.gov.