Loan Servicing

Servicing Brochure – Click to Download

We offer Investors the following services to manage their loan portfolio

Specialty in Junior Liens

We have extensive experience in working junior liens, helping you manage your risk and working with your borrowers to perform.

Performing Loan Servicing

We can handle your performing loan portfolio at a fixed cost per loan, so you’ll know your monthly and yearly budget by the number of loans we are servicing.

Escrow Services

We can handle escrow services for your loans by collecting the monthly impounds to pay taxes and insurance on behalf of the borrower.

Non-Performing Loan Servicing

We can handle your non-performing loans, making out-bound collection calls, mailing demand letters, home owner option letters per investor guidelines, hiring door knockers and occupancy inspection services at a fixed cost per loan.

Full Service Loss Mitigation

Our borrower intervention program includes skip-tracing, outbound calls by a real person, express, priority & certified mailings and a “Boots on the Ground” strategy to get the borrower to work with us on developing a win-win plan with the borrower and investor.

Foreclosure Management

We have built relationships with foreclosure attorneys nationwide whom we have vetted for value, expediency and excellence.

REO Management

We have relationships with property managers and property management resources across the country if needed.

Consulting Services in partnership with Note Conference

We understand that sometimes you may want to retain our servicing but still need advice on a particular loan or class of loans.  In this case we work in conjunction with programs at Note Conference to help you get where you need to be as a note investor.

Web Portal to view your loan activity

View your loans on the Madison web portal and see up to the minute information on your loans.  Payment History, Servicing notes, Loan balance, last payment date, next due date, loan status, payoff information all at no additional cost.

 Contact us at 877-563-4164 or via email  servicing@madisonmanagement.net to speak to us about your servicing needs.

Loan Servicing Descriptions

Madison Management Services will not service the following types of loans: NEGATIVE AMORTIZATION, DAILY SIMPLE INTEREST Loans (interest accrual method from date received to date received), or any Notes that charge INTEREST ON INTEREST Or INTEREST ON LATE FEES.

*A complete Loan Servicing Setup must be received to start servicing.

*The Setup Fee is due at the time of Setup, with all documents/information, and is non-refundable.
*Missing documents/information requested by Madison Management Services must be provided within 30 days from initial Boarding or the Loan will be Deboarded.

*Loans can be prelim Boarded with copies of UNRECORDED documents, but copies of required RECORDED documents (Deed, Mortgage, Assignments, etc.)

must be provided within 60 days.

Performing Loan Servicing Fees

 

Performing Loan Servicing Fees
Loan Setup$40 per loan
$30 per loan for 10+ boarded at one time
Loan Setup: more than one Investor/LenderAdd $20 per additional Investor/Lender
Loan Setup: ARM/HELOCAdd $5 per loan
Loan Seup: with Escrow ImpoundsAdd $15 per loan
Loan Setup: Partial Note Sales$50 per loan
Performing BK or Forbearance Plan setup$150 per loan
Complex Loan Setup$125 per loan
Servicing fee: Loans up to $400k$20 per loan/month/Lender
Additional Monthly Servicing fee:$20 per Lender per loan
Performing Bankruptcy Plan$15 per loan/month/Lender
Variable rate loans (HELOC/ARM)additional $5 per loan/month
Optional Escrow Processing $15 per loan/month up to 2 entities (tax, ins) $2.50 each additional entity
Loan Reset feeSee Additional Servicing Fees tab
Late Fee50-50 Split between Servicer & Lender

Performing loans secured by a borrower’s primary residence that become 25 days delinquent will be subject to an additional $20 per month charge for 2 months to fulfill Dodd-Frank requirements.
Optional Escrow Processing:  When a borrower’s monthly payment on a performing first mortgage includes amounts for property taxes, home owners insurance and/or HOA fees, MMS will collect those funds into a separate account and disburse the funds to the appropriate party when they become due.  The fee is $15 per loan per month and will be added to the monthly servicing fee.

 

* Fees subject to change

Full Collection Servicing fees

 

Default loan servicing with full collections works to turn your non-performing assets into performing assets through loan modifications, forbearance payment plans, facilitating the foreclosure process or obtaining a deed from the borrower. Our staff is trained in collections, workouts, foreclosure, skip tracing and working with third parties to help you maximize your investment.

Full Service Collection Fees
Loan Setup$40 per loan
$30 per loan for 10+ boarded at one time
Loan Setup: more than one Investor/LenderAdd $20 per additional Investor/Lender
Loan Setup: ARM/HELOCAdd $150 per loan
Loan Setup: with Escrow ImpoundsAdd $15 per loan
Performing BK or Forbearance Plan setup$150 per loan
Collections fee: Loan up to $1M$95 per loan/month
Collections fee: Loan over $1MAdd $20 per $M or portion thereof per loan/month
Additional Monthly Servicing fee:$20 per Lender per loan
Variable rate loans (HELOC/ARM)additional $5 per loan/month
Optional Escrow Processing$15 per loan/month up to 2 entities (tax, ins) $2.50 each additional entity
Loan Reset feeSee Additional Servicing Fees tab

Optional Escrow Processing:  When a borrower’s monthly payment on a performing first mortgage includes amounts for property taxes, home owners insurance and/or HOA fees, MMS will collect those funds into a separate account and disburse the funds to the appropriate party when they become due.  The fee is $15 per loan per month and will be added to the monthly servicing fee.

 

* Fees subject to change

* An administrative fee may apply to certain transactions.

Additional Servicing fees

Loss Mitigation Fees
Field Services (door knocker)See Additional Services
Trial Payment Plan
Trial payment plan is 3 to 6 fixed payments.
$300
Forbearance Plan negotiation and setup$350 + $75 setup
Loan Modification negotiation and completion (simple)$450 + $75 setup
Loan Modification negotiation and completion (complex)$700 + $75 setup
Combo Forbearance + Loan Modification$550 + $75 setup
Short Sale, Payoff, Satifaction of Debt, Settlement+Minimum $1000.00 or 3% of settlement amount, whichever is greater + $150 doc fees.
Deed in Lieu/Cash for Keys Coordination$175 + Attorney fee
Quit Claim deed$150 per loan
Deferral Agreement: Defer past due amounts to bring Loan ‘Contractually Current’.$175 per loan
Extension Agreement: Extend Loan Maturity Date$175 per loan
Assumption Agreement$200 per loan
Property Preservation $35 per occurance + Third Party fees
Reinstatement+Minimum $500 or 3% of reinstatement, whichever is greater.
Refinance Coordination$800
Reinstatement+Minimum $500 or 3% of reinstatement, whichever is greater.
Hardest Hit Fund per approved Loan$150 setup
Hardest Hit Fund payment processing$25

* Simple Loan Modification:  Capitalizing the arrears or forgiving the arrears when restructuring a borrower’s loan with or without a reduction in principal.  This may include a partial capitalization and forgiveness of the arrears.  Example:  capitalize 50% of the arrears and forgive other 50% of arears.

* Complex Loan Modification: Whenever the loan modification is more than just a simple capitalization of the arrears, forgiveness of the arrears or reduction of principal.  This includes adding a balloon payment provision, collection of advances over time at the same or different rates of interest.  Step modifications, where the amortization schedule will change over time, thereby changing the interest rates and monthly payment amounts, assuming the borrower made all the previous payments.  Waiving arrears over time or special provisions for the waiving of arrears in multiple increments depending on the borrower payment history.

Bankruptcy Fees
Bankruptcy Coordination and Setup$200
Bankruptcy – Amended Proof of Claim$125
Bankruptcy – Notice of Payment Change$75
Bankruptcy – Notice of Post Petition Fees & Charges$75
Bankruptcy – Transfer of Claim$50

Foreclosure Fees
Foreclosure Coordination$200 per loan
Legal document review and execution (Amounts due & owing, Foreclosure Affidavit, etc.), only for loans in NPN no collections$75
Foreclosure Registration in required States (NY, NC, etc.)$150

Document Fees
Assignment Preparation$125 per loan
Assignment Recording$25 + filing fees per loan
Allonge Preparation (attached to note)$50 per loan
Demand for payment Letter sent by Madison (not pre-foreclosure notice)$50
Document Housing$40 per loan/year
Lien Release$150 + filing fees per loan
Maturity Notice: preparation and mailing$45 per loan
Payoff Request: Lender pays$15 per loan
RESPA Dispute Response – QWR$400 per occurrence
TILA ownership transfer $25 per loan

Enter text descriptions related to documentation fees or any additional information that may be required.

Additional Fees
BPO$125 – Exterior
$140 – Interior
Servicing Transfer out: proof of new servicer license required$65 per loan
Servicing Transfer out less than contract minimum.$300 per loan
Escrow/Impounds research if needed$150 per loan
Escrow/Impounds Added to an existing loan on any program$50
Forced Placed Insurance (FPI) administrative fee (annually)$30
Late Fees %50% of paid late fee
LITIGATION/FORECLOSURE APPEARANCE COSTSStaff $150/hour & Mgmt $350/hour or portion thereof (Requires $4500 retainer deposit)
Loan Reset (modification, deferral, forbearance, HELOC reset, complex loan terms)$150
Title Report (O&E Report)$150
Questionnaire completed by Madison for any reason$150
REO Management$95 loan/month

+ Settlement includes lump sum payoff, graduated payoff, reinstatement amounts

* Fees subject to change