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#1253213 - 09/18/09 07:58 PM
Posting of payments
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Member
Joined: Jul 2009
Posts: 93
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Q1 The new regulation requiring us to post payments on day we receive them when the payments are made after our cutoff hours-does itcover ALL loan payments (comemrcial, ag, consumer,etc., only HPML or ALL residential mortgage loans? Q2 Can we post the notice requirement in our lobby/drive up or must we send the existing customers a notice and on new loans included it inside the note? Thanks,
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#1253217 - 09/18/09 08:01 PM
Re: Posting of payments
dnau
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10K Club
Joined: Jul 2001
Posts: 83,393
Galveston, TX
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1. All mortgage loans
2. It has to be in writing, so a lobby notice doesn't cut it.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#1255376 - 09/23/09 03:55 PM
Re: Posting of payments
rlcarey
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Diamond Poster
Joined: Apr 2002
Posts: 1,677
SmallTown, USA
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Is effective date for posting of payments also Oct 1, 2009?
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#1255573 - 09/23/09 05:56 PM
Re: Posting of payments
rlcarey
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Platinum Poster
Joined: Apr 2003
Posts: 933
New York State
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1. All mortgage loans
2. It has to be in writing, so a lobby notice doesn't cut it. Does #1 also include mobile home loans without a mortgage on the land (no dirt) #2 - Can you give me the citation for the notice requirement please?
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#1255697 - 09/23/09 07:04 PM
Re: Posting of payments
upstateNY
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100 Club
Joined: Feb 2008
Posts: 142
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What about payments received in the night deposit. I'm assuming the date of receipt is the date the night drop is opened and the payment removed?
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#1255741 - 09/23/09 07:37 PM
Re: Posting of payments
upstateNY
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10K Club
Joined: Jul 2001
Posts: 83,393
Galveston, TX
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Paragraph 36(c)(2) 1. Payment requirements. The servicer may specify reasonable requirements for making payments in writing, such as ........
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#1256022 - 09/24/09 01:03 AM
Re: Posting of payments
danyielg
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10K Club
Joined: Jul 2001
Posts: 83,393
Galveston, TX
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If you disclose this information to the borrower in writing.
Otherwise:
3. Implied guidelines for payments. In the absence of specified requirements for making payments, payments may be made at any location where the servicer conducts business; any time during the servicer’s normal business hours; and by cash, money order, draft, or other similar instrument in properly negotiable form, or by electronic fund transfer if the servicer and consumer have so agreed.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#1256243 - 09/24/09 03:09 PM
Re: Posting of payments
Queen Mum
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Power Poster
Joined: Nov 2003
Posts: 3,726
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Just heard back from our regulator (FDIC). We have the same situation as Queen Mum, so I asked if (1) we could create a policy for customers defining non-conforming payments and using a schedule similar to Reg CC for business days and (2) if we received a payment on a Saturday, would we have to effective date the payment to Saturday, since we don't process on Saturday.
ANSWER: Q1 - Yes the bank can create a policy for non-conforming payments but it can't be "payment made by unverified funds is non-conforming". (We are saying payment without coupon or other identifier is non-conforming. Any other ideas?). Reg CC is a different regulation than Reg Z. If you can accept a payment on Saturday, you can post a payment on Saturday, so you cannot use a Reg CC-like schedule. Q2: OSC 3. Date of receipt. The "date of receipt" is the date that the payment instrument or other means of payment reaches the mortgage servicer. For example, payment by check is received when the mortgage servicer receives it, not when the funds are collected. If the consumer elects to have payment made by a third-party payor such as a financial institution, through a preauthorized payment or telephone bill-payment arrangement, payment is received when the mortgage servicer receives the third-party payor's check or other transfer medium, such as an electronic fund transfer.
Your original intuition appears correct. There is no discussion here regarding whether or not the bank receives payment on a "business day" or "banking day". It appears that you must credit customers for payments received on Saturdays before you know if you can collect on Monday. Once the bank is able to verify funds and identifies a situation where they cannot collect, then of course the bank has its normal recourse for payments not received/late payments. You should be able to retroactively eliminate the erroneous payment in your system and not credit the customer for having paid.
I guess, from the reaction I am getting from Operations, this is much more complicated to do than it sounds.
Hope this helps!
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#1256414 - 09/24/09 05:44 PM
Re: Posting of payments
Queen Mum
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Power Poster
Joined: Nov 2003
Posts: 3,726
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Yes Truffle - that is my understandng. Queen - I am not sure how the operating side of things works for you. I believe we will have physcially set those payments made on Saturday aside and then process them on Monday with an effective date of Saturday. This will cause our system to adjust the accrued interest and do the correct split (on a P&I) payment. There has also been some talk of posting the payment online, but I haven't gotten an answer on how that works yet. I'm not sure if I am understanding your question correctly, but I hope this helps. If not, try me again - I am slow.
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It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.
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#1256438 - 09/24/09 06:03 PM
Re: Posting of payments
Queen Mum
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Power Poster
Joined: Nov 2003
Posts: 3,726
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I hear ya! My Ops Officer is ticked at me - like I made this [censored] up! Her biggest hang up was that we had to credit payment on uncollected funds - but I told her the regulators don't care if the bank loses a few bucks on a deal, they are there to protect the consumer. She still won't respond to my emails!
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It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.
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#1256658 - 09/24/09 07:53 PM
Re: Posting of payments
Queen Mum
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10K Club
Joined: Jul 2001
Posts: 83,393
Galveston, TX
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Commentary 226.36(c)(2) - Comment 3.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#1256706 - 09/24/09 08:25 PM
Re: Posting of payments
Queen Mum
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100 Club
Joined: Feb 2006
Posts: 178
LA
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I am preparing payment processing procedures and will mail to existing mortgage customers and will give to new customers at closing. It will cover the cutoff times, that Saturday is not a posting day, when we will post payments received in the night drop and mailed payments must be sent to our P O Box (and anything else that might come up once it's reviewed and blessed). Hope that will look like we're trying to comply.
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In God we trust, all others pay cash. . . Jean Shepherd
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#1256762 - 09/24/09 09:37 PM
Re: Posting of payments
dcl1963
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Power Poster
Joined: Nov 2003
Posts: 3,726
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It will cover the cutoff times, that Saturday is not a posting day, when we will post payments received in the night drop and mailed payments must be sent to our P O Box (and anything else that might come up once it's reviewed and blessed). From what my regulator is telling me, you basically can't have cut off times, like Reg CC. If you are open for business and can physically receive a payment, you must post the payment effective the day it is received. So, if you are open for business (not processing) on Saturday, regardless of your Reg CC business days, you must post that Saturday payment as received on Saturday. If your processing system won't allow you to post it on Saturday, you would have to effective date the payment to Saturday, so the borrower would not incur any additional interest, late charges or other penalty.
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It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.
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#1256769 - 09/24/09 09:48 PM
Re: Posting of payments
Queen Mum
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Power Poster
Joined: Nov 2003
Posts: 3,726
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I wish I could help you with that. Have you talked to your core or teller processor? I understand what you are going through - I really do- and I haven't figured out how we are going to do it yet either, but I would hate for people to plan their policy based on Reg CC cut offs only to be written up. Maybe you should check with your regulator - but then again - if you get a different answer - we will all really be confused!!!
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It's not that I take life for granted. It's only that the good won't make it. Innocence dies, while Villany Thrives.
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