Wrap Loans
We offer expert servicing for wrap loans, providing tailored solutions that accommodate the unique structure of these complex financial instruments. Our wrap loan services include meticulous tracking of underlying loan payments, ensuring that all obligations are met promptly and accurately. We handle the intricate details of wrap loans, from disbursing payments to managing borrower communications, ensuring a smooth and transparent process for all parties involved.
Our team is well-versed in the nuances of wrap loans, enabling us to provide specialized support and guidance throughout the loan's term. We also offer comprehensive reporting and record-keeping services, giving investors clear visibility into their loan portfolios. By choosing Securenet for your wrap loan servicing needs, you can rest assured that your investments are managed by experts who understand the complexities of these unique financial products.
What We Offer
Payment Due Date
If the underlying mortgage and the new buyer have the same payment date, there may be a short turnaround time for the mortgage payment. We recommend setting a due date at least 15 days before the underlying mortgage date. Immediate credit is given to money orders, cashier’s checks, and cash, while personal checks have a 5-day hold before disbursement.
Payment Changes
The Note Holder should provide the servicer with a copy of the yearly escrow analysis from the underlying mortgage. If there is a payment change, who decides on the new payment plan: the new buyer or the Note Holder? Mortgage companies offer several options to handle escrow shortages. Who decides which option to take? The service does not hold escrow accounts; it just “passes through” the escrows to the underlying mortgage.
Mortgage Payment Handling
The Note Holder will provide the servicer with a current mortgage statement for the underlying mortgage. The servicer will make the payment electronically, requiring the Note Holder to provide electronic payment information. Any fees for electronic payment will be paid by the new buyer or the Note Holder.
Past Due Payment
The servicer will contact the Note Holder once the grace period has ended. The Note Holder can wait for the payment to come in or make the payment and be reimbursed.
Late Fee
Consider the amount of the late fee you will collect. In most servicing agreements, late fees are split 50/50 between the servicer and the Note Holder. Ensure the late fee covers the underlying mortgage's late fee after the servicer's portion is collected.
Insurance
Will the current policy be transferred to the new buyer, or will they need to obtain their own? It is recommended that the current policy remains intact and the new borrower is added as additional insured.
Prepay Underlying Mortgage
We recommend that the payment to the underlying mortgage be one month ahead. This helps in case the payment to the servicer is late or delayed.
Reach Out Today
Reach out to us today at Securenet Loan Services, LLC, in San Antonio, Texas. Our dedicated team is ready to provide expert support and make your loan servicing experience seamless and hassle-free. Your investment's success is our priority.