Post on 01-Oct-2020
Loan Servicing 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.
Prior to Closing -
❏ Complete Loan Setup Form: Borrower Information
❏ Complete W-9 for Borrower
❏ Complete Loan Setup Form: Seller/Lender Information
❏ Complete W-9 for Lender
❏ Compete Loan Setup Form: Underlying Information, if applicable
❏ Signed Loan Servicing Agreement
❏ Authorization to Release Information
After Closing-
❏ Copy of Deed of Trust(s)
❏ Copy of Promissory Note(s)
❏ Copy of Closing Disclosure/ Settlement Statement
❏ Copy of Tax Certificates, if escrow
❏ Copy of New Insurance Declaration Page, if escrow
❏ Setup fee for Boarding Loan
❏ Escrow Funding, if applicable
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.
LOAN SERVICE AGREEMENT
(Page 2)
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
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,
LOAN SERVICE AGREEMENT
(Page 3)
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 .
● 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.
LOAN SERVICE AGREEMENT
(Page 4)
● 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
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.
● Verification of Mortgage - $25.00 Charged to Borrower
● Loan Payoff Request - $50.00. Charged to Borrower
LOAN SERVICE AGREEMENT
(Page 5)
● 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
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.
August REI, LLC
Loan Setup Form: Seller (Lender) Information
SELLER AGENT OR SOURCE (INVESTOR):
Name (If none, leave blank):____________________________________________________________
Email:______________________________________________________________________________
Phone:______________________________________________________________________________
PROPERTY (for loan servicing):
Address: ___________________________________________________________________________
City _________________________State ____ Zip _________
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.
TITLE COMPANY:
Company:_____________________________________________________________________________
Escrow Agent or Representative:_________________________________________________________
Agent Phone:_________________________________________________________________________
Agent Email:_________________________________
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.
UNDERLYING MORTGAGE INFORMATION and LIEN WAIVER
Page 2
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#______________________________
UNDERLYING MORTGAGE INFORMATION and LIEN WAIVER
Page 3
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: