loan servicing transfer checklist · other pertinent information regarding the loan. will receive...

NMLS# 1446400 ◈ 972.767.9219 ◈ 844.286-1145 ◈ Efax - 888.475.4103 ◈ [email protected]

Loan Servicing Transfer Checklist

In an effort to smoothly board your loan we have included this check list. We will make every effort to

communicate effectively with you at all times. Please help us make sure your loans with us are well taken care

of by making sure each loan package is submitted to us in full and in a timely manner. If you already have

properties with us for loan servicing, this new form will still need to be filled out, dated and signed so we can

make sure you are aware of our expectations for loans going forward.

Please be advised, if an incomplete package is received for a loan, servicing of that loan may be delayed until ALL

documents or items are received and may incur a RUSH FEE. When completed, please email your complete

package to the email below. Also, feel free to contact us at the number or email below if you have any

questions.

❏ Completed Loan Setup Form: Borrower Information

❏ Loan Servicing Transfer Form

❏ Completed Loan Setup Form: Underlying Lien, if applicable

❏ Authorization to Release Information, for underlying liens if applicable

❏ Signed Loan Servicing Agreement

❏ Copy of Deed of Trust(s)

❏ Copy of Note(s)

❏ Payment History


LOAN SERVICE AGREEMENT

I (Print Name) _______________________________ hereby acknowledge the following in regard to the

servicing of my notes with August REI, LLC.

1. SERVICING: Servicing of the Note will be performed by August Real Estate Investments, LLC (herein

after referred to as August REI, LLC or Servicer), a Residential Mortgage Loan Servicer NMLS #1446400,

per the servicing agreement between August REI Holdings, LLC and August REI, LLC. This loan servicing

agreement is made between August REI, LLC and the Lender/Investor/Seller. The Lender/Investor/Seller

(herein referred to as Lender). The Lender hereby authorizes and instructs August REI, LLC and August

REI, LLC agrees to service the Loan Service Agreement and in that connection, to do the following in

regards to the Real Estate Lien Note (herein after referred to as Note):

A. To receive any and all payments due to Lender on the Loan Servicing Acknowledgement, which

includes but is not limited to all monthly payments, all late payments and all payoffs in full or in

part. Lender retains August REI, LLC to employ commercially reasonable and prudent practices

to collect all scheduled payments on Loans identified by the Lender and further authorizes

Servicer to direct any payment to be made payable to August REI, LLC’s Trust Account.

B. To endorse to August REI, LLC’s Trust Account any checks or money orders payable to Lender

and to immediately deposit same in August REI, LLC’s Trust Account which is to be maintained in

accordance with such laws and rules applicable thereto and as to which August REI, LLC will not

commingle its assets.

C. To transmit Lenders portion of such payments of principal and interest as required by laws, rules

and regulations which are applicable. There is a hold on all checks to allow for clearing with the

bank. See “Payment Turn Time” page attached. Good funds are delivered to the Lender

without a hold at the address shown herein. August REI, LLC will not use such payment for any

other transaction other than the transaction for which the funds are received.

D. If the source of payment is not the maker of the Loan Service Agreement, to inform the Lender.

E. To cause August REI, LLC’s Trust Account utilized for this transaction to be inspected as required

by such laws, rules and regulations as are applicable thereto;

F. To receive Notices of Default of prior encumbrances and to promptly notify Lender of any

default upon the Note and any prior encumbrances.

G. To execute and deliver on Lender’s behalf and in Lender’s name any documents necessary of

convenient for the exercise of any rights or duties which Lender may have under the Loan

Service Agreement. Including and not limited to Request for Payoff Demands, Beneficiary

Statements, Insurance Declarations and other instructions to the Trustee of the Loan Service

Agreement.



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H. To receive Notices of Default of prior encumbrances and to promptly notify Lender of any

default up the Note and any prior encumbrances.

I. To grant such extensions as August REI, LLC deems reasonably appropriate.

J. Lender may terminate August REI, LLC’s authority hereunder at any time upon 10 days written

notice and upon repayment and/or payment of the following:

● Any outstanding payments made by August REI, LLC on Lender’s behalf.

● Any accrued expenses incurred by August REI, LLC in connection with servicing the Note.

1. Further, this Agreement shall terminate when any of these events occur for a specific

loan address.

● Payment in full of the Loan and reconveyance of the deed(s) of Trust securing

the Loan.

● Recordation of a trustee’s deed following a foreclosure of the Loan.

K. The following provisions (1-3) apply ONLY to loans in which Lender holds an undivided fractional

interest in the Note.

1. Lender acknowledges that it holds or will hold an undivided interest in the Note as a tenant in

common with another or other lenders all of whom are executing counterparts (except as to

vesting and payment instructions) of this loan servicing agreement. When so executed, all such

counterparts shall constitute an agreement between all holders of interests in the Loan Service

Agreement between all holders of interests in the Note as well as between Lender and August

REI LLC.

2. A default upon any interest in the Loan Service Agreement shall constitute a default upon all

interests. A simple majority in interest of lenders may determine and direct the actions to be

taken on behalf of all lenders in the event of default or with respect to other matters requiring

the direction or approval of lenders, and such majority may designate August REI, LLC to so act

in their behalf.

3. August REI, LLC shall furnish to Lender a list of names and addresses of all lenders holding an

interest in the Note upon five (5) days written notice.

L. Attorney’s Fees. If either party commences any action or proceeding to enforce this Loan Service

Agreement or any right arising under this Agreement, the prevailing party shall be entitled to recover

from the other party the reasonable and necessary actual attorneys’ fees, costs and expenses (and all

related fees, costs and expenses) incurred by it in connection with such action or proceeding and in

connection with the enforcement of any judgement thereby obtained.

M. Indemnification: Lender shall defend, indemnify and hold harmless August REI, LLC and its officers,

members, directors, employees and agents (collectively August REI, LLC) from any and all claims,

liabilities, demands, suits, debts, accounts, obligations, actions and causes of action of any nature

whatsoever by any third party including reasonable attorneys’ fees, arising out of or related to any notes



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subject to this Loan service agreement based on: (i) any information about such note supplied by lender

to August REI, LLC; (ii) any material facts that lender knows but fails to disclose to August REI, LLC

relating to the note; (iii) actions taken by August REI, LLC pursuant to instructions or directions provided

by Lender to August REI, LLC; (iv) lender’s failure to observe or perform any of lenders covenants,

agreements, warranties or representations contained in this Loan service agreement;(v) any losses

caused by notices of default and/or notices of trustee sale recorded against the property if said notice

was recorded prior to the receipt of complete file information from former servicer (on takeover files) or

escrow holder (on new closings) and within 60 days of receipt of complete file information to August

REI, LLC and (vi) alleged acts by August REI, LLC related to the note, including but not limited to ,

negligence, wrongful foreclosure, filing false lien, debt collection practices, claims under truth in lending

act and/or real estate settlement practices act. Lenders indemnity obligation

does not extend to any conduct by August REI, LLC that is found by a trier of fact to be grossly negligent,

willful, or fraudulent.

Lender’s indemnity obligations to August REI, LLC shall survive the expiration or termination of this Loan

service agreement.

1. DUTIES TO/OF BORROWER:

● Will receive a Welcome Packet which includes coupons to be sent with monthly payments

● Has their choice of payment type available, unless a particular payment type has been agreed upon

between lender and borrower in writing, a copy of which is attached to each Loan Setup Sheet.

● May pay by personal check, Pay Lease or ACH until such time as an NSF return is received after

which time only certified funds (ie., bank cashier’s check or money order) will be accepted.

● Monthly payments will be made payable to “August REI, LLC” at PO Box 496644, Garland, TX 75049

accordingly, unless another payment type has been arranged with August REI, LLC.

● Will receive a monthly statement on or around the 16th of each month via Email or mail.

● Will communicate directly with August REI, LLC regarding payments, servicing of the Note and any

other pertinent information regarding the loan.

● Will receive an annual escrow analysis and notice of adjustment of monthly payment, if taxes and/or

insurance amount changes

● Will receive a yearly 1098 Interest and Tax Form

● Has discussed with Lender and agrees that an appropriate homeowner’s insurance policy has been

put in place.

DUTIES TO/OF THE LENDER:

● Will provide full contact information and filled out W-9 Form to August REI, LLC for tax reporting

purposes.

● Will complete and submit to August REI, LLC the necessary forms and required documents per the

setup checklist for setup of the account and each property.

● Will receive monthly proceeds via Direct Deposit. If you choose not to do Direct Deposit, you will be

charged a $3.00 Check Fee for each check remitted. Standard date for checks to be cut is Tuesday

and Friday .



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● Will receive a monthly statement of account on or around the 30th of each month via Email upon

request.

● Will have online access to the Lender Portal 24/7. The portal is updated at the end of the business

days.

● Will communicate directly with August REI, LLC regarding payments, servicing of the Note and any

other pertinent information regarding the loan.

● Will forward to August REI, LLC immediately upon receipt, any and all communication regarding the

underlying mortgage, including but not limited to escrow analysis, taxes and homeowner’s

insurance.

● Has discussed with Borrower and agrees that an appropriate homeowner’s insurance policy has

been put in place.

3. Services and Fees:

Basic Servicing Fees:

Fees are described and charged as follows and are subject to change only upon 30 days’ prior written notice to

Lender and Borrower.

● Setup Fee - $50.00. Due in Full upon submittal of Loan Servicing Setup Form to August REI, LLC. Setup

Fee will be paid by (check one):

□ Lender (collected with 1st month’s proceeds) □ Borrower (collected at closing)

● Monthly Service Fee - $35.00. Will be paid by (check one):

□ Lender □ Borrower □ Split 50/50 between Lender and Borrower

● Monthly Proceeds Check Fee - $3.00. Fee will be charged to Lender. However, if Lender chooses to have

their check Direct Deposited, August REI, LLC will waive fee. (See attached Lender/Investor

Authorization Form for Automatic Direct Deposit.)

Extra Fees:

● Research/Project Fee - $50.00 per hour (as applicable). Sometimes, August REI, LLC will have to recreate

and research the historical information of your loan. This is in due in part, but not limited to, receiving

incomplete documents needed to satisfactorily service your loan. Also, due in part, but not limited to,

problems with the loan that arose due to inappropriate servicing of Note prior to August REI, LLC

receiving the Note. This Research/Project Fee will be assessed to you for time spent on the servicing of

your Note above and beyond the normal Monthly Service Fee Duties to Borrower and Lender.

● Rush Fee - $40.00 charged to Lender when package is submitted with less than 15 days to borrower’s

first payment due.

● Incomplete Lender Servicing Packet Fee - $18 per hour (as applicable). It is the Lender’s responsibility to

give August REI, LLC all necessary paperwork and history regarding the onboarding of new Notes with

August. When we receive incomplete servicing packets from lenders, it takes our office more time and

resources to get them onboarded. Due to this added burden, we will charge the Lender the extra time



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● spent onboarding their loans with August REI, LLC. The Lender, of course, can circumvent this fee by

making sure that each item we have asked for is attached to each Loan file to be onboarded with us.

● Borrower’s Late Charges - Per Note, Split 50/50 between August REI, LLC and Lender.

● NSF Return Fee - $35.00. Charged to Borrower.

● Deboarding Fee - $50.00. Charged to Lender.

● Loan Payoff Request - $50.00. Charged to Borrower

● Additional Services:

Additional services are available as requested and agreed upon between Lender and Servicer or Lender and

Borrower at additional fees, including but not limited to:

● Homeowner Insurance – Correction and Implementation

● Deferred payment or workout programs

I (Print First Name) ________________________________ agree with the terms and conditions set forth in this

Loan Service Agreement. I have been made aware of any fees and charges as described to me above and agree

to pay stated fees and charges to August REI, LLC in exchange for their servicing of any and all of the loans I have

with August REI, LLC. I give full authority to August REI, LLC, to contact my borrower’s in any and all loan related

issues, payments, etc. in the servicing of each of my loans with August REI, LLC. Again, if you as the Lender,

provide the wrong information to August REI, LLC in the servicing of this loan, we are not held personally

responsible. It is the Lender’s responsibility to give August REI, LLC any and all correct information in regards to

these loans.

Lender Signature Printed Name & Title

Company Date


Loan Transfer Form

LENDER/SELLER 1:

Name (as per your tax return) ____________________________________________________________

E-mail ______________________________________________________________________________

Phone _______________________________Alt. Phone_______________________________________

Mailing Address ____________________________________________City _______________________

State ____ Zip _________ Attached W-9 for tax purposes or IRS EIN or Tax ID Number letter

LENDER’S BANK INFORMATION FOR CASH FLOW/DIRECT DEPOSIT:

Name of Bank: ____________________________________ Type of Account: ₸ Checking ₸ Savings

Bank Address: _________________________________ Name on Account: _____________________________

Routing #: _____________________________________ Acct #: ______________________________________

● If you choose not to do Direct Deposit, you will be charged a $3.00 Check Fee for each check remitted. Standard date for checks to

be cut is Tuesday and Friday. Payments can be released monthly or quarterly upon request.

LENDER/SELLER 2:

Name (as per your tax return) ____________________________________________________________

E-mail ______________________________________________________________________________

Phone _______________________________Alt. Phone_______________________________________

Mailing Address ____________________________________________City _______________________

State ____ Zip _________ Attached W-9 for tax purposes or IRS EIN or Tax ID Number letter

LENDER’S BANK INFORMATION FOR CASH FLOW/DIRECT DEPOSIT:

Name of Bank: ____________________________________ Type of Account: ₸ Checking ₸ Savings

Bank Address: _________________________________ Name on Account: _____________________________

Routing #: _____________________________________ Acct #: ______________________________________

● If you choose not to do Direct Deposit, you will be charged a $3.00 Check Fee for each check remitted. Standard date for checks to

be cut is Tuesday and Friday. Payments can be released monthly or quarterly upon request.

LOAN INFORMATION (For Existing Note(s) between current owner and lender):

Loan Origination Date:________________________ First Payment Date:________________________

Last Payment Date: __________________________ Any Fees (legal fees, late fees) Due: $_________

How is the Escrow currently managed: (Check One) Servicer Underlying Mortgage No Escrow

Current Amount Collected Each Month: $________________________


BORROWER’S LOAN SERVICING SETUP FORM

BORROWER AGENT OR SOURCE (INVESTOR):

Name (If none, leave blank):_____________________________________________________________

Email:______________________________________________________________________________

Phone:_____________________________________________________________________________

BORROWER(S) INFORMATION:

Borrower Name (as per your tax return) _____________________________________________________

E-mail ___________________________________________________________DOB_________________

Main Phone _______________________________Alt. Phone____________________________________

Mailing Address ________________________________________________________________________

City _________________________State ____ Zip _________ Attached W-9 for tax and credit purposes

Co-Borrower Name (as per your tax return) __________________________________________________

E-mail ___________________________________________________________DOB_________________

Main Phone _______________________________Alt. Phone____________________________________

Mailing Address ________________________________________________________________________

City _________________________State ____ Zip _________ Attached W-9 for credit purposes

INSURANCE INFORMATION:

Company:_____________________________________________________________________________

Agent:________________________________________________________________________________

Agent Phone Number:___________________________________________________________________

Agent Email:___________________________________________________________________________

_________________________________________

Borrower Signature

_________________________________________

Co-Borrower Signature

_________________________________________

Date

We at August REI, LLC thank you and look forward to working with you. Please contact us at the email address or

telephone number with any questions you may have regarding your loan servicing.


Formulario de configuración de servicios de préstamos Del

Deudor

Agente de Bienes Raices (Inversor):

Nombre (si no tiene, dejar en blanco)__________________________________________________________

Email:___________________________________________________________________________________

Teléfono:_________________________________________________________________________________

PRESTATARIO (S) INFORMACIÓN:

Nombre prestatario (según su declaración de impuestos)

_______________________________________________

E-mail

___________________________________________________________FDN_________________________

Teléfono principal ________________________________Alt Teléfono________________________________

Correo electronico _________________________________________________________________________

Ciudad _________________________State ______ postal__________ adjunta W-9 a efectos fiscales y de

crédito

Nombre Coprestatario (según su declaración de impuestos) ________________________________________

E-mail

___________________________________________________________FDN_________________________

Teléfono principal_______________________________Alt. Teléfono_________________________________

Correo electronico _________________________________________________________________________

Ciudad _________________________State ____ postal_________ adjunta W-9 a efectos de crédito

INFORMACIÓN DEL SEGURO:

Empresa:________________________________________________________________________________

Agente:__________________________________________________________________________________

Agente Número de teléfono: _________________________________________________________________

Agente Email: ____________________________________________________________________________

_________________________________________

prestatario Firma

_________________________________________

Co-Prestatario Firma

_________________________________________

Fecha

Nosotros en de AUGUST REI, LLC le damos las gracias y esperamos con interés trabajar con usted. Por favor,

póngase en contacto con nosotros en la dirección de correo electrónico o número de teléfono con cualquier

pregunta que pueda tener sobre su servicio de préstamos.


UNDERLYING MORTGAGE INFORMATION and LIEN WAIVER

Investment Property Address: _______________________________ City: ______________________

State: _________________ Zip: __________________

The information I provided herein and accompanying documentation are true and correct to the best of my

knowledge. I will not hold August REI, LLC responsible for information that I have given them that is incorrect or

incomplete. I understand that August REI, LLC will set up my loan payments, disbursements, escrows, etc.

based upon information I have provided. I understand that I have to notify August REI, LLC in a timely manner

when I receive documentation or obtain knowledge that pertains to my loan(s) so that they can update my loans

accordingly.

I understand August REI will be unable to verify the payment was properly processed by The Lienholder, or that

The Lienholder has adjusted or changed the amount due, whether due to a change in forced placed escrow,

escrow calculations, unpaid escrow, interest-rate adjustments, or any other cause to change the amount the

Lienholder is attempting to collect.

________________________________________ _________________________________________

Lender’s Signature Lender’s Printed Name

________________________________________

Date

PROPERTY TAX INFORMATION (please check one as applicable):

● Taxes are Escrowed in Underlying Mortgage

● Taxes are to be Held in Trust by August REI, LLC (complete the following):

NOTE: For Initial Escrow Funding at Closing, make check payable and remit to August REI, LLC:

LENDER’S LOAN SERVICING SETUP FORM

HOMEOWNER’S INSURANCE INFORMATION (please check one as applicable):

● Homeowner’s Insurance is Escrowed in Underlying Mortgage

● Homeowner’s Insurance is to be Held in Trust by August REI, LLC.

NOTE: A copy of the Declarations Page of your policy must accompany this completed setup form.



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BORROWER/PAYMENT/DISTRIBUTION DETAILS:

Borrower’s Monthly Payment Total $ _______________ to be Disbursed as follows:

AMOUNT PAYEE (Please write the name below):

Underlying Mortgage $

Underlying Mortgage $

Lender/Investor $

Lender/Investor $

Monthly Service Fee $35.00

Payment to ESCROW

Breakdown

● Property Tax

Escrow

● Insurance Escrow

CURRENT UNDERLYING MORTGAGE STATEMENT MUST ACCOMPANY SETUP PAPERWORK

UNDERLYING MORTGAGE PAYMENT ALLOCATION

1st Lien Mortgage Holder August Loan Servicing will pay: ________________________________________

Mailing Address____________________________ City__________________ State ____ Zip _______

Phone ______________________________ Account #______________________________________________

Payment Due Date _________________________ Full Payment Amount $ _____________________________

Underlying Lien Holder’s Name_______________________________SSN#______________________________



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CURRENT UNDERLYING MORTGAGE STATEMENT MUST ACCOMPANY SETUP PAPERWORK

2nd Lien Mortgage Holder August Loan Servicing will pay: ________________________________________

Mailing Address____________________________ City__________________ State ____ Zip _______

Phone ______________________________ Account #______________________________________________

Payment Due Date _________________________ Full Payment Amount $ _____________________________

Underlying Lien Holder’s Name_______________________________SSN#______________________________

Any Special Notes / Instructions from Lender to August REI, LLC? Feel free to write below.

__________________________________________________________________________________________

__________________________________________________________________________________________

__________________________________________________________________________________________


Authorization to Release Information

Complete one form for each lien

Account # or Loan #: _____________________________________________________

Lender Name: __________________________________________________________

Lender Phone: __________________________________________________________

Lender Fax: ____________________________________________________________

Property Address: _______________________________________________________

City: _____________________________ State:______ Zip: ________________

I hereby authorize you to release any and all information regarding my account for the above address,

including loan status, interest rate, payoff amount, amount of monthly payment, late charges, penalties,

and fees (if applicable), foreclosure attorney’s name and phone number to the following:

August REI, LLC

To Include: Amy Sayre, Consuelo Moore, Don Sayre, Maria Estrada & Janeth

PO Box 496644, Garland, TX 75049

Fax (888) 475-4103

Phone (972) 767-9219

Phone (844) 286-1145

Borrower #1: ________________________________________ SS#: ______-____-______

Signature: ___________________________________________ Date: _________________

Borrower #2: ________________________________________ SS#: ______-____-______

Signature: ___________________________________________ Date: _________________


Payment Turn Time

OVERVIEW:

We aim to please YOU, our customer. Please take a moment and read through this document. We

want to make you aware of our Turn Around Time for payment on your account. Specifically in regards

to the average time it takes for us to receive the funds, process the funds in our office, and how long it

takes (on average) for the banks to process the payments.

IF PAID BY:

Certified Funds (Money Orders, Cashier’s Checks):

1. Received before 3:30pm are paid out the same day.

2. Funds received after 3:30 pm are processed out the following day.

Online Payments:

1. We receive email notification and apply the payment to the loan.

2. We receive daily deposits when the funds clear the bank.

Please Note: The average daily turnaround time for the deposit is 2-4 business days.

ACH Payments:

1. We draft the account on the day requested by the borrower.

2. We verify the funds are good before releasing the payment so we are not reversing funds from

lender's accounts.

Please Note: The average daily turnaround time for the deposit is 2-5 business days.

Check Payments:

1. The day the payment is received in the mail, the payment is applied to the loan. Then the

payment is deposited in the bank.

2. We apply funds to the loan and deposit it in the bank, Monday through Friday. Then we have to

wait for the funds to clear the bank before dispersing checks to lenders.

Please Note: The average turnaround time for deposits to show up in the lender’s account is 4-5

business days.


Payment Turn Time

Page 2

IMPORTANT regarding wrap, Sub2 or assumptions:

Because of the turn around time expected for payments to be received in our office, verified and the

banks to clear the payments on your account we HIGHLY recommend you make sure that you have

one month’s house payments deposited into your account with August REI. This will ensure we can

pay your mortgage on the first regardless of the day of the month your payee provides their payment to

us. This will ensure we have a buffer built into the turn around time from your payee.

Example: If your payee doesn’t make their payment until the 10th of the month then realistically you can

expect their payment to NOT be processed by the banks and noted into your mortgage account until at

least the 15th of the month (or later). Unfortunately, we are not the bank, just the payment processor,

and we can’t make your payment for you on the first if your payee hasn’t given us their payment unless

you have a buffer built into your account.

Lender’s

Signature:

Printed

Name:

Date:

loan servicing transfer checklist · other pertinent information regarding the loan. will receive...

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