Mortgage Customers > Frequently Asked Questions

Payment Information
1. How will my payments be applied?
2. How long does it take for my payment to be posted after you receive it?
3. I sent my payment on time, but it has not been credited to my account and has not cleared my bank. What should I do?
4. I mailed my payment to the prior servicer before I received the notification of transfer. Will my account be credited?
5. May I send extra money to apply to my loan? If so, how will it be applied?
6. When is my payment considered late?

Payoff Requests
1. Will I receive a refund, if I overpaid my loan in paying it off?
2. What is interest in Arrears?
3. If I plan to payoff my loan, must I send a regular payment?

Financial Hardships
1. If I have financial problems, can PMH Financial help?
2. What does PMH Financial's Loss Mitigation Department handle?
3. If I find that I will not be able to make my payment on time, should I tell you?
4. If I am making payments on a Forbearance Agreement, will I continue to accrue late fees? If I make my payments as agreed under the Forbearance Agreement, how will my credit be reported?

Taxes
1. Who pays my taxes?

Insurance
1. Am I required to have homeowner's (hazard or property) insurance?
2. Why is it important to have PMH Financial listed as the Loss Payee?
3. What if I don't have homeowner's insurance or don't provide proof of coverage?
4. Am I required to have flood insurance?
5. What if I don't have flood insurance or don't provide proof of coverage?
6. What if I have my own insurance policy and a lender placed charge has been assessed to my loan?

Escrow
1. What is an escrow/impound account?
2. How often is the escrow account analyzed?

Year-End Tax Statement (1098)
1. When will I receive my Year-End Tax and Interest information?

 

Payment Information

Q: How will my payments be applied?
A: Payments received will be applied in accordance with the terms of your mortgage note. This generally means that funds will first be applied to any payments past due. Once current, any additional available funds will be applied to outstanding fees, costs and advances prior to being applied as a principal reduction. Should you have any questions regarding a specific payment, please call our Customer Relations Department.

Q: How long does it take for my payment to be posted after you receive it?
A: Payments sent to the addresses on your statement and properly noted with your loan number are posted within 24 hours of the day of receipt.

Q: I sent my payment on time, but it has not been credited to my account and has not cleared my bank. What should I do?
A: If two or more weeks have elapsed since you sent the payment, PMH Financial suggests for your protection, that you ask your bank to put a Stop Payment on the check. You will then need to resubmit your payment to PMH Financial. If you elect to place a stop payment on the check, please note that PMH Financial will not be responsible for the stop payment charge from your bank, and a $25.00 returned check fee will be assessed to your account when the check is returned unpaid.

Q: I mailed my payment to the prior servicer before I received the notification of transfer. Will my account be credited?
A: If you mailed your payment to the prior service, please be assured that it will be endorsed and forwarded to PMH Financial for proper credit to your account. If you receive a notice from us that it has not been received, please advise us immediately. Our Customer Service department will work with you to either secure the payment you sent, or make arrangements to resubmit the payment to us.

Q: May I send extra money to apply to my loan? If so, how will it be applied?
A: This is known as a partial prepayment. Assuming your loan is current and has the standard payment application requirements (check your Note, Mortgage and any applicable Riders for details), an amount sent over and above the regular payment amount will be applied first to any outstanding charges (such as late fees or interest) and then to principal. Also, if your Note has a prepayment penalty, the extra amount, you send could trigger that penalty.

Q: When is my payment considered late?
A: Late charges are specified in your Note or Retail Installment Contract. A payment is considered late one day after the payment due date. However, late charges are assessed in accordance with the "grace period" as identified in your Mortgage Note.

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Payoff Requests

Q: Will I receive a refund, if I overpaid my loan in paying it off?
A: Yes. Refunds are mailed within 30 days after application of payoff funds. However, keep in mind that your principal balance alone does not represent the total amount necessary to pay your loan in full. Typically a payoff consists of principal, current interest, any outstanding fees and potentially may include a prepayment penalty. Therefore, the total to pay off your loan could be considerably higher than your current principal balance.

Q: What is interest in Arrears?
A: A simplified way to define Interest in Arrears, is that the current month's payment pays the prior months interest. Interest in Arrears defines the manner in which most mortgage loans are amortized (paid) to maturity.

Q: If I plan to payoff my loan, must I send a regular payment?
A: Yes. If the payoff of your loan will occur after your regular payment due date, you must send a payment to avoid collection calls, late charge, and a possible negative report to the credit bureaus.

 

Financial Hardships

Q: If I have financial problems, can PMH Financial help?
A: Yes. Our Collection staff is available to speak to you about options and to possibly make a referral to our Loss Mitigation Department, where trained associates can discuss payment solutions. You may contact our Customer Relations Department, Monday –Friday from 8:00 AM - 5:00 PM, MST.

Q: What does PMH Financial's Loss Mitigation Department handle?
A: The Loss Mitigation Department considers requests for relief due to financial hardship. This information will be required in writing, along with updated financial statements to allow PMH Financial to assess the situation and recommend options and appropriate payment plans.

Q: If I find that I will not be able to make my payment on time, should I tell you?
A: YES. It is important that we know if you are having temporary financial difficulties. If you find you will not be able to meet your obligation on or before your monthly payment due date, please contact us.

Q: If I am making payments on a Forbearance Agreement, will I continue to accrue late fees? If I make my payments as agreed under the Forbearance Agreement, how will my credit be reported?
A: All payments past due under the terms of the original Mortgage or Note (contract) during this Forbearance Agreement continue to accrue monthly late fees. Your account will be reported to the credit bureaus as contractually delinquent until brought current.

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Taxes

Q: Who pays my taxes?
A: If you do not have an existing escrow/impound account with PMH Financial, you are responsible for paying your taxes when they become due. If you have not previously set up an escrow/impound account and would like to do so now, click here to print the necessary form.

If you have an existing escrow/impound account with PMH Financial, your taxes will be paid when due from your escrow/impound account.

Please refer to your Settlement Statement from closing to determine if you have an escrow/impound account established. You may also refer to your monthly billing statement to determine if your monthly payment includes an escrow portion, or contact our Customer Relations Department to verify this information.

 

Insurance

Q: Am I required to have homeowner's (hazard or property) insurance?
A: Yes. If you have a home loan, you must have adequate insurance to cover the structure against loss. Every homeowner's policy has a section to list your mortgage holder as a loss payee. PMH Financial must be listed in the loss payee section. Per your signed Mortgage and Note terms, you are required to provide evidence of insurance upon request. If PMH Financial does not have proof of coverage, we will notify you that we need this information. Should you receive an insurance request notification, please contact your agent/carrier immediately and advise them to provide us with evidence of insurance, and to ensure they show PMH Financial as loss payee.

Q: Why is it important to have PMH Financial listed as the Loss Payee?
A: This is important for several reasons, which ultimately affect you the customer, your agent/carrier, and PMH Financial. In the unfortunate event that your property suffers a loss, the insurance carrier needs this information to ensure the repairs are completed in a timely manner. Each year your agent/carrier will send out the renewal policy to ensure the servicer of your loan has evidence of insurance. Finally, for escrowed loans where PMH Financial is responsible for paying the annual insurance premium, your agent/carrier must have PMH Financial listed as loss payee with the correct address to ensure that we are billed timely and payment is made to avoid policy cancellation. Please ensure that PMH Financial is listed as loss payee on your insurance policy as follows:

PMH Financial LLC
Insurance Department
9035 Wadsworth Parkway
Suite 1600
Westminster, CO 80021

Q: What if I don't have homeowner's insurance or don't provide proof of coverage?
A: Per your signed Mortgage and Note, homeowner's insurance is required. Therefore, if proof of continuous coverage is not provided, a policy may be obtained - at your expense - to cover the structure only. If you have proof of continuous coverage, click here to update your insurance information with our Insurance Department. You may also fax this information to (888) 882-1816. Please be sure to include your loan number. Please note that you may be able to obtain homeowner's insurance at considerably less cost to you than the lender placed premium that may be assessed to your account. It is important that you realize that force placed insurance, although paid by you, affords you no coverage for the personal contents or personal liability coverage; it only protects PMH Financial in the event of damage to the structure. PMH Financial does offer supplemental insurance coverage that may be purchased for an additional cost that will cover a portion of your personal contents. For additional information, please call our Customer Relations Department. This coverage is only available to accounts that have PMH Financial's lender placed insurance already assessed. It is important to note that this insurance provides limited coverage, and typically at a higher cost, than a policy you obtain on your own.

Q: Am I required to have flood insurance?
A: If your property is located in an area designated by FEMA (Federal Emergency Management Agency) as a SFHA (Special Flood Hazard Area), you are required to have flood insurance coverage. You are also required to provide proof of continuous flood insurance coverage if your property is located in a SFHA. If PMH Financial does not have proof of coverage, we will notify you that we need this information.

Q: What if I don't have flood insurance or don't provide proof of coverage?
A: Per your signed mortgage and note, flood insurance is required if your property is in an area designated as a flood zone. Therefore, if proof of continuous coverage is not provided, a policy will be obtained - at your expense - to cover the structure only.

Q: What if I have my own insurance policy and a lender placed charge has been assessed to my loan?
A: Lender placed insurance is issued to cover a lapse period only when we have no record of other insurance coverage on file. Upon receiving evidence of insurance that covers that lapse, the lender placed coverage can be fully or partially canceled based on the evidence provided. Whether your loan is escrowed or not, all lender placed premium amounts are billed to an escrow/impound account, and any refunds are credited back to the escrow/impound account accordingly.

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Escrow

Q: What is an escrow/impound account?
A: An escrow account is a service provided by PMH Financial at no charge to our customers. A portion of your monthly payment is set-aside in this account to accumulate the amount necessary to pay your future taxes and/or insurance when they become due. Generally, an escrow account is set up when you purchased your home or refinanced your loan, in order to allow sufficient time to accumulate the necessary funds to cover future payments. If you have not previously setup an escrow/impound account and would like to do so now, click here to print the necessary form.

An initial escrow disclosure will be mailed to notify you of the deposit amount required to open an escrow/impound account, along with the projected monthly escrow payment. Once we receive the required escrow deposit, the escrow account is activated and the escrow payment is added to your monthly mortgage payment.

Q: How often is the escrow account analyzed?
A: Your escrow/impound account will be reviewed (analyzed) at least once a year. We will compare the monthly deposits into your escrow account to the projected payments to be made from your escrow/impound account. You will receive a written escrow analysis notifying you in advance of any necessary adjustments to your monthly payment amount.

 

Year-End Tax Statement (1098)

Q: When will I receive my Year-End Tax and Interest information?
A: By the end of January each year, you will be sent a statement (Form 1098) of your account for the previous year's reporting. This statement shows your loan balances as well as the interest you paid since PMH Financial acquired your loan. You may need this information to complete your tax forms. We must also report this information to the IRS if the amount of interest paid is over $600. To review your current 1098 information click here. Enter your account number and the last four digits of your Social Security Number then click on View 1098 to view and print your current 1098 information. To request a year other than the last reported year, please click here to email us. In your request, be sure to include your loan number, the last four digits of your Social Security Number and the specific year.

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