MORTGAGE RIGHTS
Account Histories Terms Used in Account Histories Let's turn our attention to the column labeled, "Description," which tells us what type of transaction is being entered in the account history. Mortgage servicers use a large number of terms for transactions. Here is a list of the ones you might encounter. Accrued Interest. Interest earned for the period of time that has elapsed since interest was last paid. Adjustment. (Adj.) Change to prior account treatment of payment or expense, including reallocation of funds held in suspense account. Also may refer to change in loan terms. Attorney Advance. Funds paid to attorney, usually for collection and/or foreclosure. If you are sending a Notice of Error or Request for Information to your servicer pay attention to these entries. The servicer should only charge you after it has paid the attorney's invoice. Ask for proof that the services were rendered, when, and for how much. Bankruptcy. (BK) The homeowner has declared bankruptcy. Broker's Price Opinion. (BPO) Evaluation of property value typically based on drive-by exterior examination, public data sources, and recent comparable sales, obtained by servicer as alternative to full appraisal. This expense appears after the loan is in default, and should be watched closely. For example, does the servicer really need a BPO every month? Corporate Advance. (Corp. Adv.) Payment for servicing-related expenses (not escrow expenses) paid with servicer funds rather than escrow funds, with the intent of recovering the payment from the homeowner. This is another category that should be watched carefully, since the entry does not tell you for what the funds were spent. Your mortgage has a list of expenses that can be charged to you, such as foreclosure expenses. An expense that is not authorized by the mortgage could be hidden under "corporate advance." Curtailment: There are two kinds of mortgage curtailment payments. A full curtailment completely pays off your mortgage loan. A partial curtailment is an extra payment towards your mortgage. While it doesn't pay off your entire mortgage, it reduces the amount of monthly payments needed to finish paying off your loan. You can make multiple partial curtailments throughout the course of your mortgage. Disbursement. (Disb) Payment for servicing-related charges and expenses, including payments made out of escrow. Again, this is something you need to pay attention to. Escrow Account. Trust account into which a homeowner's funds are deposited and held to pay taxes, insurance premiums, and other escrow expenses. Escrow Advance. (Esc Adv) If there is not enough money in an escrow account to pay an escrow expense, such as property taxes, the servicer may pay the item out of its own funds. The payment is called an escrow advance, and the servicer will look to the homeowner to repay it. Escrow Balance. (Esc Bal) The amount of money in the escrow account. Escrow Deficiency. The amount of money you owe the servicer for an escrow advance. The amount will have a minus sign at the end. Escrow Payment. The amount placed in the escrow account. If you escrow for taxes and insurance, you should see an escrow payment every month. Escrow Shortage. Servicers are required to analyze your escrow account every year. The servicer estimates your property taxes and insurance, and calculates a monthly amount needed to make certain that funds will be available when the escrow item must be paid. An escrow shortage is the amount by which current escrow account balance falls short of the projected target balance at the time of an escrow analysis. Escrow Surplus. Amount by which current escrow account balance exceeds the projected target balance at the time of an escrow analysis. Force Placed Insurance. All mortgages require you to buy hazard insurance for your home. Force placed insurance is insurance purchased by the servicer when the homeowner fails to have insurance. Force placed insurance in the past has been extremely expensive and only covers the lender's interest in your house. There were so many abuses in this area that the CFPB began regulating it. Interest payment (Int) The portion of a payment that is applied to interest. Late Charge Assessed. Fee charged to borrower’s account when payment made after due date (usually fifteen days after due date). Principal. (Prin) The amount you still owe on the loan. Interest is charged on the remaining principal balance. Principal Payment. That portion of your monthly payment that is applied to principal. Property Inspection Fee/Property Preservation Fee. (Insp) Fee charged to borrower for inspections (usually drive-by) to determine the physical condition or occupancy status of mortgage property, often imposed repeatedly once account is placed in default status. Recovery/Escrow Advance Recovery. Amount paid by homeowner to repay the servicer for an advance. If te servicer repays itself before applying your payment to principal and interest, you should check the order of payment in your mortgage to see if it i allowed to do so. Refund. Funds returned to homeowner. You should watch for a refund if the servicer improperly bought force placed insurance for your house. Make certain that the amount is correct. Returned Check Fee. (NSF fee) Fee charged for a bounced check. Repayment. The amount the servicer pays itself from your payment for funds that it advanced, such as property taxes. Reversal. Removal of previously imposed charge or reapplication of previously credited payment. Generally involves two-step accounting process in which item is reversed in one transaction and reapplied in another transaction. Make certain that both entries are made, and are made for the same amount. Short Payment. Payment made in less than full monthly amount due under the loan payment schedule, often held in suspense account until full amount received. The servicer also has the right to reject the payment, which is discussed under Returned Payment. You can get into a lot of trouble quickly if you do not make full payments or the servicer does not consider your payment to be in full. SpeedPay Fee. Fee charged for making electronic payment. The chapter on spotting mistakes in account histories shows an example of a SpeedPay Fee being charged, but the monthly payment was not entered in the account. Statutory Expense. I see this most often for filing fees when foreclosures are begun. Courts require you to pay a fee when you start a court case. Any tax, special assessment, or other charge imposed by federal, state, or local taxing authority or other governmental entity. Generally does not refer to taxes paid through escrow account but rather corporate advances to cover such charges when account is in default or property facing tax sale, or following a foreclosure. Suspense Account. (Susp) Catch-all account used as place to temporarily put funds that are in “suspense” until servicer makes decision on how to permanently allocate or apply, often used to hold less than full installment payments or payments received while account in default. Suspense Balance. (Susp bal) Amount of funds held in a suspense account. Tax Penalty. Interest, late charge, or other penalty imposed by taxing authority for late payment of taxes. Transaction Date. Date reflected on payment or account history showing time when servicer completed account transaction or took other action. Transaction Description. Notation on payment or account history often in code describing nature of, or reason for, application of payment, disbursement, or other servicer action.
NEXT: Notices of Error and Requests for Information
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Account Histories Terms Used in Account Histories Let's turn our attention to the column labeled, "Description," which tells us what type of transaction is being entered in the account history. Mortgage servicers use a large number of terms for transactions. Here is a list of the ones you might encounter. Accrued Interest. Interest earned for the period of time that has elapsed since interest was last paid. Adjustment. (Adj.) Change to prior account treatment of payment or expense, including reallocation of funds held in suspense account. Also may refer to change in loan terms. Attorney Advance. Funds paid to attorney, usually for collection and/or foreclosure. If you are sending a Notice of Error or Request for Information to your servicer pay attention to these entries. The servicer should only charge you after it has paid the attorney's invoice. Ask for proof that the services were rendered, when, and for how much. Bankruptcy. (BK) The homeowner has declared bankruptcy. Broker's Price Opinion. (BPO) Evaluation of property value typically based on drive-by exterior examination, public data sources, and recent comparable sales, obtained by servicer as alternative to full appraisal. This expense appears after the loan is in default, and should be watched closely. For example, does the servicer really need a BPO every month? Corporate Advance. (Corp. Adv.) Payment for servicing-related expenses (not escrow expenses) paid with servicer funds rather than escrow funds, with the intent of recovering the payment from the homeowner. This is another category that should be watched carefully, since the entry does not tell you for what the funds were spent. Your mortgage has a list of expenses that can be charged to you, such as foreclosure expenses. An expense that is not authorized by the mortgage could be hidden under "corporate advance." Curtailment: There are two kinds of mortgage curtailment payments. A full curtailment completely pays off your mortgage loan. A partial curtailment is an extra payment towards your mortgage. While it doesn't pay off your entire mortgage, it reduces the amount of monthly payments needed to finish paying off your loan. You can make multiple partial curtailments throughout the course of your mortgage. Disbursement. (Disb) Payment for servicing-related charges and expenses, including payments made out of escrow. Again, this is something you need to pay attention to. Escrow Account. Trust account into which a homeowner's funds are deposited and held to pay taxes, insurance premiums, and other escrow expenses. Escrow Advance. (Esc Adv) If there is not enough money in an escrow account to pay an escrow expense, such as property taxes, the servicer may pay the item out of its own funds. The payment is called an escrow advance, and the servicer will look to the homeowner to repay it. Escrow Balance. (Esc Bal) The amount of money in the escrow account. Escrow Deficiency. The amount of money you owe the servicer for an escrow advance. The amount will have a minus sign at the end. Escrow Payment. The amount placed in the escrow account. If you escrow for taxes and insurance, you should see an escrow payment every month. Escrow Shortage. Servicers are required to analyze your escrow account every year. The servicer estimates your property taxes and insurance, and calculates a monthly amount needed to make certain that funds will be available when the escrow item must be paid. An escrow shortage is the amount by which current escrow account balance falls short of the projected target balance at the time of an escrow analysis. Escrow Surplus. Amount by which current escrow account balance exceeds the projected target balance at the time of an escrow analysis. Force Placed Insurance. All mortgages require you to buy hazard insurance for your home. Force placed insurance is insurance purchased by the servicer when the homeowner fails to have insurance. Force placed insurance in the past has been extremely expensive and only covers the lender's interest in your house. There were so many abuses in this area that the CFPB began regulating it. Interest payment (Int) The portion of a payment that is applied to interest. Late Charge Assessed. Fee charged to borrower’s account when payment made after due date (usually fifteen days after due date). Principal. (Prin) The amount you still owe on the loan. Interest is charged on the remaining principal balance. Principal Payment. That portion of your monthly payment that is applied to principal. Property Inspection Fee/Property Preservation Fee. (Insp) Fee charged to borrower for inspections (usually drive-by) to determine the physical condition or occupancy status of mortgage property, often imposed repeatedly once account is placed in default status. Recovery/Escrow Advance Recovery. Amount paid by homeowner to repay the servicer for an advance. If te servicer repays itself before applying your payment to principal and interest, you should check the order of payment in your mortgage to see if it i allowed to do so. Refund. Funds returned to homeowner. You should watch for a refund if the servicer improperly bought force placed insurance for your house. Make certain that the amount is correct. Returned Check Fee. (NSF fee) Fee charged for a bounced check. Repayment. The amount the servicer pays itself from your payment for funds that it advanced, such as property taxes. Reversal. Removal of previously imposed charge or reapplication of previously credited payment. Generally involves two-step accounting process in which item is reversed in one transaction and reapplied in another transaction. Make certain that both entries are made, and are made for the same amount. Short Payment. Payment made in less than full monthly amount due under the loan payment schedule, often held in suspense account until full amount received. The servicer also has the right to reject the payment, which is discussed under Returned Payment. You can get into a lot of trouble quickly if you do not make full payments or the servicer does not consider your payment to be in full. SpeedPay Fee. Fee charged for making electronic payment. The chapter on spotting mistakes in account histories shows an example of a SpeedPay Fee being charged, but the monthly payment was not entered in the account. Statutory Expense. I see this most often for filing fees when foreclosures are begun. Courts require you to pay a fee when you start a court case. Any tax, special assessment, or other charge imposed by federal, state, or local taxing authority or other governmental entity. Generally does not refer to taxes paid through escrow account but rather corporate advances to cover such charges when account is in default or property facing tax sale, or following a foreclosure. Suspense Account. (Susp) Catch-all account used as place to temporarily put funds that are in “suspense” until servicer makes decision on how to permanently allocate or apply, often used to hold less than full installment payments or payments received while account in default. Suspense Balance. (Susp bal) Amount of funds held in a suspense account. Tax Penalty. Interest, late charge, or other penalty imposed by taxing authority for late payment of taxes. Transaction Date. Date reflected on payment or account history showing time when servicer completed account transaction or took other action. Transaction Description. Notation on payment or account history often in code describing nature of, or reason for, application of payment, disbursement, or other servicer action.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Account Histories Terms Used in Account Histories Let's turn our attention to the column labeled, "Description," which tells us what type of transaction is being entered in the account history. Mortgage servicers use a large number of terms for transactions. Here is a list of the ones you might encounter. Accrued Interest. Interest earned for the period of time that has elapsed since interest was last paid. Adjustment. (Adj.) Change to prior account treatment of payment or expense, including reallocation of funds held in suspense account. Also may refer to change in loan terms. Attorney Advance. Funds paid to attorney, usually for collection and/or foreclosure. If you are sending a Notice of Error or Request for Information to your servicer pay attention to these entries. The servicer should only charge you after it has paid the attorney's invoice. Ask for proof that the services were rendered, when, and for how much. Bankruptcy. (BK) The homeowner has declared bankruptcy. Broker's Price Opinion. (BPO) Evaluation of property value typically based on drive-by exterior examination, public data sources, and recent comparable sales, obtained by servicer as alternative to full appraisal. This expense appears after the loan is in default, and should be watched closely. For example, does the servicer really need a BPO every month? Corporate Advance. (Corp. Adv.) Payment for servicing-related expenses (not escrow expenses) paid with servicer funds rather than escrow funds, with the intent of recovering the payment from the homeowner. This is another category that should be watched carefully, since the entry does not tell you for what the funds were spent. Your mortgage has a list of expenses that can be charged to you, such as foreclosure expenses. An expense that is not authorized by the mortgage could be hidden under "corporate advance." Curtailment: There are two kinds of mortgage curtailment payments. A full curtailment completely pays off your mortgage loan. A partial curtailment is an extra payment towards your mortgage. While it doesn't pay off your entire mortgage, it reduces the amount of monthly payments needed to finish paying off your loan. You can make multiple partial curtailments throughout the course of your mortgage. Disbursement. (Disb) Payment for servicing-related charges and expenses, including payments made out of escrow. Again, this is something you need to pay attention to. Escrow Account. Trust account into which a homeowner's funds are deposited and held to pay taxes, insurance premiums, and other escrow expenses. Escrow Advance. (Esc Adv) If there is not enough money in an escrow account to pay an escrow expense, such as property taxes, the servicer may pay the item out of its own funds. The payment is called an escrow advance, and the servicer will look to the homeowner to repay it. Escrow Balance. (Esc Bal) The amount of money in the escrow account. Escrow Deficiency. The amount of money you owe the servicer for an escrow advance. The amount will have a minus sign at the end. Escrow Payment. The amount placed in the escrow account. If you escrow for taxes and insurance, you should see an escrow payment every month. Escrow Shortage. Servicers are required to analyze your escrow account every year. The servicer estimates your property taxes and insurance, and calculates a monthly amount needed to make certain that funds will be available when the escrow item must be paid. An escrow shortage is the amount by which current escrow account balance falls short of the projected target balance at the time of an escrow analysis. Escrow Surplus. Amount by which current escrow account balance exceeds the projected target balance at the time of an escrow analysis. Force Placed Insurance. All mortgages require you to buy hazard insurance for your home. Force placed insurance is insurance purchased by the servicer when the homeowner fails to have insurance. Force placed insurance in the past has been extremely expensive and only covers the lender's interest in your house. There were so many abuses in this area that the CFPB began regulating it. Interest payment (Int) The portion of a payment that is applied to interest. Late Charge Assessed. Fee charged to borrower’s account when payment made after due date (usually fifteen days after due date). Principal. (Prin) The amount you still owe on the loan. Interest is charged on the remaining principal balance. Principal Payment. That portion of your monthly payment that is applied to principal. Property Inspection Fee/Property Preservation Fee. (Insp) Fee charged to borrower for inspections (usually drive-by) to determine the physical condition or occupancy status of mortgage property, often imposed repeatedly once account is placed in default status. Recovery/Escrow Advance Recovery. Amount paid by homeowner to repay the servicer for an advance. If te servicer repays itself before applying your payment to principal and interest, you should check the order of payment in your mortgage to see if it i allowed to do so. Refund. Funds returned to homeowner. You should watch for a refund if the servicer improperly bought force placed insurance for your house. Make certain that the amount is correct. Returned Check Fee. (NSF fee) Fee charged for a bounced check. Repayment. The amount the servicer pays itself from your payment for funds that it advanced, such as property taxes. Reversal. Removal of previously imposed charge or reapplication of previously credited payment. Generally involves two-step accounting process in which item is reversed in one transaction and reapplied in another transaction. Make certain that both entries are made, and are made for the same amount. Short Payment. Payment made in less than full monthly amount due under the loan payment schedule, often held in suspense account until full amount received. The servicer also has the right to reject the payment, which is discussed under Returned Payment. You can get into a lot of trouble quickly if you do not make full payments or the servicer does not consider your payment to be in full. SpeedPay Fee. Fee charged for making electronic payment. The chapter on spotting mistakes in account histories shows an example of a SpeedPay Fee being charged, but the monthly payment was not entered in the account. Statutory Expense. I see this most often for filing fees when foreclosures are begun. Courts require you to pay a fee when you start a court case. Any tax, special assessment, or other charge imposed by federal, state, or local taxing authority or other governmental entity. Generally does not refer to taxes paid through escrow account but rather corporate advances to cover such charges when account is in default or property facing tax sale, or following a foreclosure. Suspense Account. (Susp) Catch-all account used as place to temporarily put funds that are in “suspense” until servicer makes decision on how to permanently allocate or apply, often used to hold less than full installment payments or payments received while account in default. Suspense Balance. (Susp bal) Amount of funds held in a suspense account. Tax Penalty. Interest, late charge, or other penalty imposed by taxing authority for late payment of taxes. Transaction Date. Date reflected on payment or account history showing time when servicer completed account transaction or took other action. Transaction Description. Notation on payment or account history often in code describing nature of, or reason for, application of payment, disbursement, or other servicer action.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Account Histories Terms Used in Account Histories Let's turn our attention to the column labeled, "Description," which tells us what type of transaction is being entered in the account history. Mortgage servicers use a large number of terms for transactions. Here is a list of the ones you might encounter. Accrued Interest. Interest earned for the period of time that has elapsed since interest was last paid. Adjustment. (Adj.) Change to prior account treatment of payment or expense, including reallocation of funds held in suspense account. Also may refer to change in loan terms. Attorney Advance. Funds paid to attorney, usually for collection and/or foreclosure. If you are sending a Notice of Error or Request for Information to your servicer pay attention to these entries. The servicer should only charge you after it has paid the attorney's invoice. Ask for proof that the services were rendered, when, and for how much. Bankruptcy. (BK) The homeowner has declared bankruptcy. Broker's Price Opinion. (BPO) Evaluation of property value typically based on drive-by exterior examination, public data sources, and recent comparable sales, obtained by servicer as alternative to full appraisal. This expense appears after the loan is in default, and should be watched closely. For example, does the servicer really need a BPO every month? Corporate Advance. (Corp. Adv.) Payment for servicing-related expenses (not escrow expenses) paid with servicer funds rather than escrow funds, with the intent of recovering the payment from the homeowner. This is another category that should be watched carefully, since the entry does not tell you for what the funds were spent. Your mortgage has a list of expenses that can be charged to you, such as foreclosure expenses. An expense that is not authorized by the mortgage could be hidden under "corporate advance." Curtailment: There are two kinds of mortgage curtailment payments. A full curtailment completely pays off your mortgage loan. A partial curtailment is an extra payment towards your mortgage. While it doesn't pay off your entire mortgage, it reduces the amount of monthly payments needed to finish paying off your loan. You can make multiple partial curtailments throughout the course of your mortgage. Disbursement. (Disb) Payment for servicing-related charges and expenses, including payments made out of escrow. Again, this is something you need to pay attention to. Escrow Account. Trust account into which a homeowner's funds are deposited and held to pay taxes, insurance premiums, and other escrow expenses. Escrow Advance. (Esc Adv) If there is not enough money in an escrow account to pay an escrow expense, such as property taxes, the servicer may pay the item out of its own funds. The payment is called an escrow advance, and the servicer will look to the homeowner to repay it. Escrow Balance. (Esc Bal) The amount of money in the escrow account. Escrow Deficiency. The amount of money you owe the servicer for an escrow advance. The amount will have a minus sign at the end. Escrow Payment. The amount placed in the escrow account. If you escrow for taxes and insurance, you should see an escrow payment every month. Escrow Shortage. Servicers are required to analyze your escrow account every year. The servicer estimates your property taxes and insurance, and calculates a monthly amount needed to make certain that funds will be available when the escrow item must be paid. An escrow shortage is the amount by which current escrow account balance falls short of the projected target balance at the time of an escrow analysis. Escrow Surplus. Amount by which current escrow account balance exceeds the projected target balance at the time of an escrow analysis. Force Placed Insurance. All mortgages require you to buy hazard insurance for your home. Force placed insurance is insurance purchased by the servicer when the homeowner fails to have insurance. Force placed insurance in the past has been extremely expensive and only covers the lender's interest in your house. There were so many abuses in this area that the CFPB began regulating it. Interest payment (Int) The portion of a payment that is applied to interest. Late Charge Assessed. Fee charged to borrower’s account when payment made after due date (usually fifteen days after due date). Principal. (Prin) The amount you still owe on the loan. Interest is charged on the remaining principal balance. Principal Payment. That portion of your monthly payment that is applied to principal. Property Inspection Fee/Property Preservation Fee. (Insp) Fee charged to borrower for inspections (usually drive-by) to determine the physical condition or occupancy status of mortgage property, often imposed repeatedly once account is placed in default status. Recovery/Escrow Advance Recovery. Amount paid by homeowner to repay the servicer for an advance. If te servicer repays itself before applying your payment to principal and interest, you should check the order of payment in your mortgage to see if it i allowed to do so. Refund. Funds returned to homeowner. You should watch for a refund if the servicer improperly bought force placed insurance for your house. Make certain that the amount is correct. Returned Check Fee. (NSF fee) Fee charged for a bounced check. Repayment. The amount the servicer pays itself from your payment for funds that it advanced, such as property taxes. Reversal. Removal of previously imposed charge or reapplication of previously credited payment. Generally involves two-step accounting process in which item is reversed in one transaction and reapplied in another transaction. Make certain that both entries are made, and are made for the same amount. Short Payment. Payment made in less than full monthly amount due under the loan payment schedule, often held in suspense account until full amount received. The servicer also has the right to reject the payment, which is discussed under Returned Payment. You can get into a lot of trouble quickly if you do not make full payments or the servicer does not consider your payment to be in full. SpeedPay Fee. Fee charged for making electronic payment. The chapter on spotting mistakes in account histories shows an example of a SpeedPay Fee being charged, but the monthly payment was not entered in the account. Statutory Expense. I see this most often for filing fees when foreclosures are begun. Courts require you to pay a fee when you start a court case. Any tax, special assessment, or other charge imposed by federal, state, or local taxing authority or other governmental entity. Generally does not refer to taxes paid through escrow account but rather corporate advances to cover such charges when account is in default or property facing tax sale, or following a foreclosure. Suspense Account. (Susp) Catch-all account used as place to temporarily put funds that are in “suspense” until servicer makes decision on how to permanently allocate or apply, often used to hold less than full installment payments or payments received while account in default. Suspense Balance. (Susp bal) Amount of funds held in a suspense account. Tax Penalty. Interest, late charge, or other penalty imposed by taxing authority for late payment of taxes. Transaction Date. Date reflected on payment or account history showing time when servicer completed account transaction or took other action. Transaction Description. Notation on payment or account history often in code describing nature of, or reason for, application of payment, disbursement, or other servicer action.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.