Mortgagors' monthly payments are the lifeblood of a mortgage servicing operation. A large portion of the servicer's income derives from servicing fees that can only be collected when payments are made and correctly handled. The handling of these monies is called cash management.
It all begins with the receipt of the monthly mortgage payment from each borrower. The manner in which the payment is tendered ranges from paper checks sent through regular mail to electronic payments made through a website. Upon receipt of the payment, the servicer must accurately apply the monies to various accounts according to rules and timelines set forth both internally and by the investor. In most cases, the investor is either Fannie Mae or Freddie Mac. In addition to administering the closed loan, the servicer may also be the investor.
In this course, we'll look at how mortgage payment cash is managed at a mortgage servicing company. Topics include payment application, automated payments, and cash processing for payments, payoffs, reversals, and exceptions.
Course Outline:
Lesson 1 - Types of Cash Movement
- Cash Movement Basics
- Major Tasks
- Payment Applications
- Misapplication Reversals
- Bad Check Reversals
- Investor Remittance
Lesson 2 - Payment Automation
- Payment Methods and Channels
- Lockbox Services
- Lockbox Procedures
- Lockbox Performance
- Mortgage Acceleration Programs
- Payment Automation Tools
Lesson 3 - Lesson Cash Processing
- Payment Posting Rules
- Posting Exception Payments
- Processing Escrow-Related Funds
Course Credit:
Completion of this course earns five points toward MBA's Certified Mortgage Banker (CMB), or
Certified Mortgage Technologist (CMT) designations. This course also earns five points towards
MBA's Mortgage Servicer, Financial Controls and Investor Administration Professional Certificate (CMS Level II). |