There are instances when the first payment letter has been received by the customer but the loan has not been funded. The investor does not have the account set up but the customer has made his payment to them. We want to send out a form letter with the first payment letter that says make your first payment to us and we will make sure it is credited correctly.

Are there any requirements that we have to take into consideration for these circumstances?

"There are instances when the first payment letter has been received by the customer but the loan has not been funded."

How is that possible??

Sorry - maybe wrong term - there has been a tentative approval from the investor and we close but there is some delay and the investor does not have the loan set up and the customer may make a payment.

I believe that the borrower would be due a transfer of servicing letter rather than a first payment letter. There are definitely two creditors involved in this transaction and there is going to be transfer in servicing.