INVESTORS: You’ve probably heard by now that we are switching servicers, and if you have called Evergreen, you may be getting a different story than what is true. I’ll just say that when an investor says “Foreclose!” then we expect our servicer to start the process. And we also expect them to know Dodd-Frank’s requirements for servicers and to comply with our investor’s instructions. Evergreen shut down their Vegas office without any notice to anyone, including their staff, and now their staff have applied for jobs here at Capella, and we will be hiring Lilly Luna as a licensed account executive. We wish we could have hired Yoli also, but we are not a payment collection company.
The company chosen to replace Evergreen is FCI, the only Level One rated servicer in the country with 8.6 billion under management. And when we interviewed them, they knew the rules on Dodd-Frank, in fact they knew the most recent rules from April of 2018. Their setup fee and monthly fee are waaaaay cheaper than either Evergreen or Weststar, but there is one catch. They take 50% of the servicing fee on loans from $1 to $500k, 25% of late fees from $500k to $2M, and 15% of late fees over $2M loan amount. They say that this is because of the series of 7 letters, email, and phone calls they have to do every time a loan goes late. In addition, the mortgage broker is also required to contact the borrower – which we already do once we know the loan is really late, and not just “lost in the mail late”, and we are also subject to additional requirements, especially if the loan goes past 90 days, and most especially if it is a “covered loan”. Therefore, Capella Mortgage will split the remaining late fees with the investor(s). Hopefully with the additional focus on contacting the borrower, we will have fewer late payments, and therefore, fewer late fees. They did tell us that it is their corporate policy, with NO exceptions, that any loan that has ever been serviced by Weststar, cannot be transferred to FCI. If you want to transfer your Evergreen loan, then it is only a $30 fee to onboard the loan, if we send them a spreadsheet. However, our system pretty much captures all of the payment history from all of the servicers, and we will also do so for FCI, and that data will be made available to you soon on the portal, so make your decisions and let us know.
FCI does not take any of the default interest and they also have a full foreclosure department. I recommend you go to www.TrustFCI.com I also recommend that you read the list of fees at this link: http://www.trustfci.com/GeneralFeeSchedule.html. There are a lot of services you can take advantage of. Also, one other negative, we are not allowed to impound the HOA fees any more. Supposedly, that is not a “real estate related fee”.
Yes, we seriously thought about starting our own servicing company, but we remember how all of you feel about mortgage brokers collecting payments from borrowers. We feel the same way. However, if FCI does not work out to your satisfaction, please let us know….as you always do, and we will figure out what to do from there!
FYI, if you had any loans that closed from June 25th through today, we did have to get new checks cut to FCI and we have to send all new packages to the borrowers and the investors, so it will be a bit more time before the packages are sent off. We are required to do the setups in one “batch” with an excel spreadsheet.
We hope FCI’s customer service exceeds your expectations. Also, the chat on the InvestTrustDeeds.com and Portal are almost working 100%. The staff have started receiving chats. The next step will be to have all “investor issues” emailed to “firstname.lastname@example.org”, so that we can keep track of all of them. Right now, everyone emails email@example.com or firstname.lastname@example.org so we have a dedicated staff person that takes those emails and sends them to the staff to work on, as we really don’t know all of the answers. But Sherry does!!! So, start chatting, and using that email so you get quicker answers.