Verify the accuracy of the loan data you added to your servicing system, such as note rate, service fee, beginning balance and accuracy of payment application.
Make sure adjustable rate variables are correct, including the index, margin, adjustment period, periodic cap, look back period, and interest change date. Then, round to the nearest 1/8, and use the right calculation for ARM products.
Confirm the interest due calculations prior to transmitting, since interest is required for all reinstatement transactions.
Principal due is calculated incorrectly.
For newly funded loans, verify the accuracy of the unpaid principal balance (UPB), and, for seasoned loans, verify the prior cycle UPB.
Consolidate multiple payments into a single transaction.
Review the prior cycle loan history to account for returned payments for non-sufficient funds.
Make sure all principal payments are included with the UPB payoff.