The world of investment servicing can become quite confusing. This is especially true is you’re new to investing. With so many questions pouring into our investment servicing department, we decided to put together some of the most helpful answers here for you to learn more.
Investment Servicing Frequently Asked Questions
How does the Operator of an investment know when to make payments?
When funded and closed, a welcome packet goes out that includes their first payment letter, mortgage statement, and coupon payment booklet. In the event of a late payment, letters go out to them on the 15th of each month. In addition, Balloon Payment letters go out at the 90/60/30 day mark before the investment is due.
What do investors receive once the investment is closed and funded?
When the investment is funded and closed, a notification goes to all invested parties. This informs them of their investment number, property address, and percentage breakdown of all investing parties.
When are distributions made?
Interest payment processing takes 3-5 business days. Disbursements to investors are made on Tuesdays and Fridays, following a 5 day hold to ensure payments clear.
Why are the first disbursements lower than the monthly return?
The day investors fund the investment is the first day you earn interest. In most cases, funding takes place somewhere in the middle of the month and as a result, this is considered odd day’s interest. Depending on the day that your investment closes, disbursements go to Investors on Tuesdays and Fridays, following a 5 day hold to ensure payments clear. Payments either go out through direct deposit or the mail. Investors that set up for direct deposit will see their payment hit their account the following business day.
If I set up direct deposit (ACH), will I lose the ability to have a paper trail or keep track of what each payment is for?
Investor’s set up for direct deposit receive monthly statements detailing a summary of their serviced investments. Investor statements illustrate information on each payment disbursed.
Can I use multiple bank accounts for my direct deposit?
Each investment is setup to only disburse to one account.
Do Investor’s get a copy of all statements that go out to Operators?
Investors are always notified when welcome packets go out to Operators. Upon request, we can provide a copy of statements sent to Operators.
What are the benefits of Servicing?
- Timely and effective responses providing resolutions to customer service needs
- Mailing of Operator welcome letter including payment coupons and servicing standards
- Collection of monthly payments and payoffs from Operators
- Secure and timely disbursements to Investors
- Providing monthly investor statements with disbursements
- Mailing of late and maturity notices to Operators
- Preparation and submission of Payoff Demands
- Preparation and submission of Reconveyance documentation
- Tracking the status of insurance and delinquency on all investments
- When action is required we notify Operators and investors
- Referral to foreclosure department – upon investor request
- Providing end of year Tax documentation for all investments
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