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How to generate a borrower adjustment notice?

This article discusses how to generate a Borrower Adjustment Notice for ARM loans.

CAUTION: You are required to provide borrowers with adjustment notices at least once each year in which an interest rate adjustment is implemented without an accompanying payment change, and at least 25 but not more than 120, calendar days prior to the due date of a payment at the new level. Adjustment notices must either be delivered or placed in the U.S. mail within the time limitation.

NOTE: How does The Mortgage Office® determine when notices must be printed? In addition to the end-user options presented below, the borrowers selected as recipients of rate adjustment notices must have pending ARM rate or payment modifications for which a notice has not been sent. Once the notices are printed and you have marked them as printed, they won't be selected again.

To print the Borrower Adjustment Notice:

  • Click on running Loan Servicing in the left panel of The Mortgage Office®.
  • Click on Tasks & Reports.
  • Click file-word-regular Borrower Adjustment Notices located underneath the Adjustable Rate Mortgages section of the page.
  • Select All Loans or Selected Loans by Account from the drop-down list.

TIP: When you choose Select Loans by Account you must enter starting and ending account numbers in the From and To input fields. You can enter the same starting and ending account number to select a single loan, or you can enter a logical range to select multiple loans. For example, if you enter HBT as the starting and ending accounts, all loans with account numbers starting with HBT will be included.

  • Next, select the type of Notice to Print. You have the following three choices:
    • Standard Rate & Payment Adjustment Notice. This is the standard notice used primarily for non-RESPA loans.
    • RESPA Initial Rate & Payment Adjustment Notice. This notice is required only for the first time the interest rate adjusts. It must be provided to the consumer between 210 days and 240 days before the first payment at the new rate is due.
    • RESPA Regular Rate & Payment Adjustment Notice. This is the ongoing interest rate adjustment notice and it must be provided to the consumer between 60 and 120 days before the first payment at the new rate is due.

TIPS:

  • All three notices are handled with a single Microsoft Word mail-merge template. To learn how to edit and make modifications to this template, please read to How to edit notices.
  • The RESPA square-check-solid checkbox in the loan terms detail section must be selected to send a RESPA notice. For more information, see How to add or edit details in the terms of a loan?
  • For additional information see section 1026.20(d) of the 2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules.
  • Check square-check-solid Exclude Borrowers on Hold to exclude all borrowers that have been placed on hold; otherwise, uncheck this box.
  • Check square-check-solid Exclude notices without changes to only print notices in which the rate or payment actually changed.
  • If necessary, use the Select Categories to Include or Exclude hyperlinks to filter borrowers based on their categories.

NOTE: Categories are keywords or phrases that help you create logical loan groups. To learn more read How to Use the Categories Window.

  • Click NEXT blue button without border Next.

TIP: You may, as many times as needed, use the NEXT blue button without border Next and BACK button Back navigation buttons to retrace your steps and make changes.

  • The next step, Select Borrowers, presents a list of borrowers based on the criteria and options you entered in the prior step.
  • At this point, you may accept the list as-is, or individually check or uncheck borrowers to be included or excluded from the notice. To select or unselect individual borrowers from the list, check the box square-check-solid located at the left.

NOTES: 

  • You won't be able to proceed to the next step unless one or more borrowers are selected.
  • You may use the Select All and Clear All hyperlinks near the bottom of the window to mass check or uncheck all borrowers on the list.
  • You may also select the Export to Excel hyperlink to automatically generate and download an excel report.
  • If you selected square-check-solid Exclude notices without changes option in the prior step, then the selection box will be grayed out for all notices in which the rate or payment did not change.
  • Click NEXT blue button without border Next.
  • The notice's Author Information step allows you to customize the notices with the author's name, title, phone number, fax number and email address, as well as the notice's date and date-format to be used.

NOTE: The author's information is local to your login and is not shared with other users of The Mortgage Office®. This enables you to personalize all letters sent by you, without having to reenter this information over-and-over again.

  • After updating the fields, click NEXT blue button without border Next.
  • On the Print Notices dialog screen, check square-check-solid Override delivery options and print statements for all selected loans if you want to ignore the recipient's delivery preference and print a notice.

TIP: Documents that are email-enabled will use each recipient's delivery preference to determine whether the document is emailed, printed and mailed or both. You can override this preference by selecting the option above. For example: even if many borrowers have elected to receive their monthly statements via email, you may want to print and send the year-end statements via regular U.S. mail.

  • square-check-solid Create Attachments. Select this option to attach a copy of this notice to the borrower's file. Use the Tab: drop-down menu to specify which attachment tab to store the document under. To learn more, see Attachments.
  • Select print Print Notices to send the notice(s) to your printer.
  • Select PRINT REGISTER blue folded sheet, no border Download PDF to create and automatically download a PDF of the notice(s) to your computer's Downloads folder.
  • Select envelope-solid Email Notices to email the notice(s).
  • Click the BLUE mark as printed floppy disk button Mark as Printed button to update the notices once you have successfully printed the notice(s).

NOTES:

  • If you do not mark the notices as Printed, they will be included in the list the next time you run this assistant. Also, for auditing reasons and to fulfill legal requirements, the date and time the notices were printed is logged at the time you mark them as printed.
  • Individual notices can be reprinted at any time from the loan's Scheduled Rate & Payment Changes grid which accessible by clicking the Scheduled Rate & Payment Changes hyperlink found in the loan's ARM tab. To learn more, click here. 
  • Click CANCEL Cancel to exit the assistant.

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