New Extended Payoff Quote Option and Calculation Method Effective Today
June 2, 2014
Effective today, June 2, 2014, we are offering our Servicers and their borrowers a new option for extending the time period for which the payoff quote is valid from five business days to 10 business days. Extended quote periods will not extend into the following month.
This longer time period will provide more flexibility for borrowers to complete the payoff with the applicable quote. With this change, we have updated the Payoff Instructions and Form to include a new section for the Extended Payoff Quote option and created a shorter, industry-standard Borrower Authorization form to go with it.
9/96 Yield Maintenance Calculation Method Now Mandatory
Also effective today, for cash mortgages, Servicers must now use the 9/96 yield maintenance calculation method to calculate the number of months remaining in the yield maintenance period; the 7/93 yield maintenance calculation method is no longer available. The 9/96 yield maintenance calculation is consistent with how we calculate the number of months remaining in the yield maintenance period for our mortgages intended for securitization and with industry-standard practice.
Training Resources Available on our Website
We conducted two separate training webinars earlier this month covering the details of these recent process improvements. If you were unable to join us or you need a refresher, please see the Extended Quote Pdayoff an 9/96 Yield Maintenance Calculation Method Training presentation listed under the Training section of our Investor Reporting Resources web page.
For additional questions, please contact your loan accounting representative or send an email to email@example.com.