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J S • 6 years ago

....a large part of the program dealt with the FHA; specifically, the archaic servicing requirements and timelines for FHA loans in default, and the inability to accurately estimate the cost incurred when an FHA loan goes into default. The Wells representative was quite vocal with his criticism of the FHA.

Dee • 6 years ago

As a servicer, there are standard losses associated with an FHA loan. From what I recall, the losses associates with an FHA are to do with a limit on attorney fees and costs (I believe the servicer eats 1/3 of the cost) and the loss of interest because it is calculated at debenture rate. If the debenture rate is lower than the note rate, there is a loss. Also, realize if the loan is sold in GNMA pools, the interest is passed through. This is all assuming the servicer meets the 1st legal deadline and due diligence for foreclosure timeline. Also, that it adequately solicited and attempted loss mitigation at the intervals HUD requires.

sandyjean412 • 6 years ago

Is there a way I can find out how much my servicer pays for my loan? It's a little under $400,000. I've spent countless hours writing letters to them and calling them, and that's true on their side also - because of some of their unfair practices. I assume they've paid at least $3,000 in one year, the amount of money they've assessed me for late fees for a one-time missed payment (which took almost three years to pay).

Dee • 6 years ago

sandyjean, what are you trying to figure out?

sandyjean412 • 6 years ago

What a servicer earns on the $400K mortgage I have with them.

Dee • 6 years ago

Look at your truth in lending document from closing. It will list the interest you will pay over the life of the loan. You can also estimate looking at an amortization schedule. It will show you how much interest is paid over the life of the loan. The servicer only earns the service fee if they if they are not the owner of the asset/loan. The investor/owner is the one who earns the interest. I'm going to take the other side now, when someone borrows $$, the person agrees to pay back with interest, nothing new here. It doesn't matter how much it is and the number will always be huge. The time to disagree with interest is when you get an advance copy of the TIL. For instance we borrowed 83,600 nearly 30 years ago. In the end, the total loan cost us $231,412.00 which means interest total was 147,812.00.
Tell me your interest rate and length of term. I will give you an idea of how much interest it will cost over life of loan.

sandyjean412 • 6 years ago

I already know how much interest I'm paying on my $415K mortgage at 4.75 percent. I've paid about $124,000 in interest since early 2008 - my last refi to get out from under a negative amortization. I'm just wonderfing about the service fee Seterus is getting and how they can send interest payments to an investor I can't even locate - ABN AMRO. $1,650 goes to interest every month, and only $350 for principal.