Personal Finance FAQs

The amount showing on the annual statement as "deferred interest" is the portion of unpaid interest, which is added to the principal balance.  This is a result of negative amortization that occurs when the amount of the mortgage payment is not sufficient to cover the full amount of interest due.

Due to IRS regulations, the mortgage lender reports interest paid in the name of the primary customer's name only.  The primary customer is the person whose name is listed and signed first on the note or modification agreement.  If the loan is modified and the names change, then the names on the loan will be changed to reflect the modification.  We limit customers to one reporting change over the term of the loan.  Written requests are required before any changes will be made for the current year reporting only.  Previous years reporting will not be modified.

This notice is a HUD requirement that goes to FHA customers annually.  Under Section 329 of the Cranston-Gonzales Affordable Housing Act, HUD requires lenders to provide customers, at closing and on an annual basis, with a disclosure statement describing the prepayment requirements a mortgagor must fulfill to avoid interest accrual after the prepayment date.  This is not a payoff quote, nor does it mean you have to send the amount.

A balance at year-end does not necessarily equal an overage.  The escrow balance as of year-end is held for escrow for the upcoming year escrow disbursements.  Your annual escrow analysis cycle is typically driven by tax payment cycles as opposed to the calendar.

This is the projected amount you would need to pay (if you were going to pay off the loan as of the date listed) and includes principal, interest, penalties, late charges, and any escrow advances.

Your year end/annual statement is mailed by January 31 of each year.

Interest is calculated by the number of payments made in a year.

We report interest for the seller through the month and year of the last payment due by the seller.