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Letter of Intent to Wait to Purchase document sample
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12 – LOAN PURCHASE AND DELIVERY
IN GENERAL
The entire closed Mortgage Loan package should be reviewed for completeness and accuracy
before shipping to the Master Servicer for purchase.
AMORTIZED LOAN BALANCE
When Mortgage Loans are purchased, the Master Servicer will determine the principal balance
and current escrow reserves, based on an amortized balance. The Master Servicer will purchase
loans on a non-delinquent, normal payment, normal escrow disbursement status. If there is any
special activity such as a principal only payment, notify the Master Servicer. If one or more
payments are due before purchase, a payment history is required.
TIMING OF DELIVERY
The closed loan purchase file must be submitted to the Master Servicer for review by whichever
is SOONER:
∙ within 30 days after closing the mortgage loan; or
∙ prior to the expiration of the reservation.
Bank of America, N.A. will be under no obligation to review or purchase mortgage files
delivered after the Final Loan Submission Date.
Note: Mortgage Lenders are responsible for servicing mortgage loans
prior to purchase by Bank of America.
DELIVERY OF CLOSED LOANS
Closed loan purchase files must be submitted via mail in a legal-sized manila folder. All
documents must be “acco” fastened according to either the:
1) FHA Loan Stacking Sheet;
2) VA Loan Stacking Sheet;
3) USDA-RHS Loan Stacking Sheet; or
4) Conventional Loan Stacking Sheet; and
5) Second Mortgage Loan Stacking Sheet, if applicable.
(Rev. 11/02/10) LOAN PURCHASE AND DELIVERY 12.1
The stacking sheets list all the documents required for submission of a closed loan package to
Bank of America for purchase. The file must be delivered with the documents in the order shown
on the applicable stacking sheet. Note that each loan file must include the Loan Purchase
Voucher (Bond Loan) (15.21) and Wiring Instructions (15.27).
DELIVERY ADDRESS
Loan packages must be sent to the following address. Follow up conditions may either be faxed
to (888) 200-5572 or sent to the following address, according to document requirements:
Bank of America, N.A.
MRB Correspondent Lending
Master Servicing Bond Unit
31303 Agoura Road
Westlake Village, CA 91361
Mail code: CA6-917-02-05
Fax number for suspense conditions: (888) 200-5572
The Master Servicer will review each file to verify that all documentation is complete
and that the loan file is in conformity with the terms and conditions
of the Program Manual and the origination agreement.
WIRE TRANSFER INSTRUCTIONS
Wire instructions are computer-coded. If wire instructions change at any time, please notify the
Master Servicer by faxing the “Wire Authorization Form” to the attention of the Bank of
America Lender Evaluation Department at (888) 894-8707. The Wire Authorization Form can
be found in the Seller’s Guide located on the Bank of America Correspondent Lending Web site
in the Miscellaneous Section under Forms (Supplemental). The Master Servicer will not be
responsible for wiring if the notification was not sent.
LOAN PURCHASE SCHEDULE/FUNDING
All mortgage loans must be purchased by Bank of America by the expiration date of the
reservation. Mortgage loans must be current in payments of principal, interest, taxes, and
insurance at the time of purchase.
Bank of America will generally review loans within 3-5 days of receipt. Complete loans will be
approved for purchase the same day, and Mortgage Lenders are responsible for retrieving wire
details from the Bank of America Correspondent Lending Web site. To access wire details on
the site, first click “Reports” on the Correspondent Lending Web site Home Page menu bar, then
“PrimeCES Wire Details.”
(Rev. 07/01/11) LOAN PURCHASE AND DELIVERY 12.2
Mortgage Lenders should carefully review the information contained on the wire detail report for
accuracy. If changes or adjustments are required, the Mortgage Lender should immediately
notify Bank of America in any of the following ways:
∙ Call 800-447-1686, and select the appropriate option.
Or
∙ Email Post Funding Adjustment request to
core.bankerselect.post.funding@bankofamerica.com
Or
∙ Submit Post Funding Adjustment request on “Reports” option on the Bank of
America Correspondent Lending Web site
The Master Servicer will purchase loans due as follows:
∙ On loans purchased between the 1st and the 15th of the month (file must be delivered
on or before the 12th of the month for purchase), the mortgagor will receive a
payment coupon with an effective date of the 1st of the following month. (For
example, if the first payment is due on the note July 1st and Bank of America
purchased the loan on June 12th, then the first payment due to Bank of America from
the mortgagor is July 1st).
∙ Loans purchased by Bank of America between the 16th and the end of the month,
prior to the first payment due date, will be purchased with the next payment due to
Bank of America the month following the first due date on the note. (For example, if
the first payment is due on the note July 1st and Bank of America purchased the loan
on June 25th, the first payment due Bank of America from the Mortgagor is August
1st). This allows the Mortgage Lender to collect the first payment due on the loan and
provide a 15-day notice of change of servicers in accordance with RESPA.
∙ Any loan that is suspended on or after the 10th of the month, with the first payment
due the next month, will require a current payment history upon completion of the
conditions.
If the Mortgage Lender receives a mortgage payment that should have been sent to the Master
Servicer, please send to:
BAC Home Loans Servicing, LP
P.O. Box 515507
Los Angeles, CA 90051-6807
PURCHASE PRICES
Loan Sale by Net
Lender to Compensation to
Borrower Points Servicer Lender
2.00 99.50% 1.50%
1.00 100.50% 1.50%
0.00 101.50% 1.50%
(Rev. 07/01/11) LOAN PURCHASE AND DELIVERY 12.3
NET ESCROW FUNDS FROM PURCHASE WIRE
With the exception of any escrow payments that are the lender’s responsibility per Bank of
America policy, the following items will be netted from the lender’s purchase wire proceeds:
Escrows deposited with the lender
Escrow amounts included in any payments due the lender
FEES TO MASTER SERVICER
Flood Certification Fee: $10 (Bank of America nets at purchase; no fee if using LandSafe)
LOAN SUSPENSIONS (EXCEPTIONS)
Immediately after a purchase review is done, suspense conditions are available to Mortgage
Lenders on the Master Servicer’s Correspondent Lending Website. To access a suspension
report, go to the Master Servicer’s Seller Home Page and select the “Reports” link. Then, click
on “Funding Suspensions.” This report lists any documents needed to complete the file or any
corrections that need to be made to documents before the loan may be purchased.
∙ Conditions required prior to loan purchase or separate follow up documentation must
be clearly identified with the Bank of America loan number and the Mortgage Lender
loan number, and must include a copy of the Loan Suspense Notification.
∙ The most common suspensions occur for: a missing note; incorrect endorsement to
the note; incomplete copy of the Mortgage/Deed of Trust; missing Riders to the
Mortgage/Deed of Trust; incomplete assignments; missing final HUD-1s; missing or
incomplete hazard, tax, mortgage insurance, or flood information.
∙ Bank of America encourages Mortgage Lenders to submit suspense items in a timely
manner; however, mortgage loans that have been in suspension for more than 10 days
will be sent back to the Mortgage Lender for correction and/or the Mortgage Lender
will be charged a $100.00 late fee. Once all suspension items have been corrected,
the Mortgage Lender can return the mortgage file to Bank of America for final review
and purchase.
FIRST PAYMENT/GOODBYE LETTER
The originating Mortgage Lender must inform the Borrower that the loan will be sold to a Master
Servicer. Please instruct the Borrower to send payments to the Mortgage Lender until
notification is received from the Master Servicer that the loan has been purchased. A sample
Goodbye Letter can be found in the Seller’s Guide located on the Bank of America
Correspondent Lending Web site in the Miscellaneous Section under Forms (Supplemental).
The First Payment Letter must be included in the closed loan package to the Master Servicer and
contain the following information:
(Rev. 07/01/11) LOAN PURCHASE AND DELIVERY 12.4
Borrower name(s)
Subject property address
Principal and interest payment amounts
Each impound, identified by type and monthly amount*
*Note: All amounts included in the First Payment Letter must correspondent to the HUD-1
Settlement Statement and the Initial Escrow Disclosure
TAXES
Property taxes are required to be paid as follows:
∙ If the delinquency due date is more than 30 days from the date Bank of America
purchases the loan, Bank of America is responsible for the next installment due after
the purchase.
∙ If the delinquency date is less than 30 days from the Bank of America purchases the
loan, the Mortgage Lender must pay the current tax installment and provide proof of
payment (such as a payment history or HUD-1) at the time the mortgage loan is
purchased.
HAZARD INSURANCE PREMIUM
If the premium is due more than 30 days from the date Bank of America purchases the loan,
Bank of America will be responsible for the next premium following purchase. (Note: Insurance
bills must be forwarded to Bank of America immediately upon receipt.)
If the premium is due less than 30 days from the date Bank of America purchases the loan, the
Mortgage Lender must pay the insurance and provide evidence of the payment (e.g., payment
history) at the time the loan is purchased. In all cases, the hazard insurance coverage must be in
force at the time of purchase.
∙ When purchasing a hazard binder, Mortgage Lender must obtain a paid receipt
indicating active coverage from the time the loan is purchased. Binders must be
effective for at least 30 days after the date of purchase by Bank of America.
For Mortgage Lender’s convenience, a Sample Insuring Letter (15.18) is provided in this
Program manual.
FLOOD INSURANCE
Please see Section 2 for additional information.
(Rev. 07/01/11) LOAN PURCHASE AND DELIVERY 12.5
MONTHLY INSURANCE PREMIUM
On government loans, the first premium due to HUD on the monthly MIP is due with the first
loan payment. Mortgage Lenders are responsible for payment of the monthly MIP, from the
initial MIP payment through the month that Bank of America purchases the loan. If the
mortgage loan is purchased prior to the first payment due date, Bank of America will be
responsible for all monthly MIP payments on the mortgage loan.
Example 1
A mortgage loan was closed by the Mortgage Lender on December 15, with the first loan
payment due on the note on February 1. The MIP premium for one month was collected
at closing and is reflected on the HUD-1. Bank of America purchases the loan on
January 20, at the balance remaining after the February 1 payment is applied. (The first
payment due to Bank of America from the borrower is March 1.) Even though the
February 1 escrow payment will be made to the Mortgage Lender, Bank of America
amortizes the loan for the February payment and assumes responsibility for making the
MIP payment. Therefore, the MIP amount showing collected on the HUD-1 is due to
Bank of America, along with the February payment, and will be deducted from the wire
amount.
Example 2
The Mortgage Lender closed the mortgage loan on February 1, with the first loan
payment due on the note on March 1. Bank of America purchases the mortgage loan on
March 20. The Mortgage Lender is responsible for the payment of the March MIP
installment. Bank of America will pay the April installment.
Example 3
The Mortgage Lender closed the mortgage loan on September 1, with the first loan
payment due on the note on October 1. Bank of America purchases the mortgage loan on
February 20. The Mortgage Lender is responsible for all MIP premiums due from
September 1 to February 1. Bank of America assumes responsibility for making the MIP
payment with the March installment.
MORTGAGE INSURANCE PREMIUMS
The first monthly mortgage insurance premium on a conventional loan is due at the time the loan
closes. Mortgage Lenders are responsible for the initial monthly premium and all monthly
premiums due through the month the loan is purchased by Bank of America. The Mortgage
Lender typically collects two months’ of mortgage insurance at the time of loan closing and
forwards the total amount directly to the mortgage insurance company.
(Rev. 04/24/09) LOAN PURCHASE AND DELIVERY 12.6
Example 1
The Mortgage Lender closed the mortgage loan on January 5, based on the HUD-1
settlement date. The first loan payment is due on the note on February 1, and Bank of
America purchases the mortgage loan on January 20. The mortgage loan has monthly
PMI premiums, and the PMI premium for one month was collected at closing and
immediately sent to the mortgage insurance company. Bank of America will pay the
February installment.
Note: Bank of America will purchase the loan at the balance after the February 1
payment has been applied, reflecting the March 1 payment as the first payment owed to
Bank of America from the borrowers.
Example 2
The Mortgage Lender closed the mortgage loan on September 5, based on the HUD-1
settlement date, and Bank of America purchases the mortgage loan on January 1. The
Mortgage Lender is responsible for the payment of all monthly PMI premiums due
September 5 through January, including the payment due January 5. Bank of America
will pay the February PMI premium due February 5.
When using an upfront Lender funded option such as MGIC’s Single File program, the Mortgage
Lender will collect the loan level pricing adjustment at closing and the Master Servicer will pay
the mortgage insurance company the premium upon loan purchase.
PROPERTY INSPECTIONS
Property inspections are required for all properties 10 years of age and older. See Section 4,
"Property Requirements" for additional information.
POST CLOSING DETAILS OF SECTION 800 – ITEMS PAYABLE IN CONNECTION
WITH LOAN
The Mortgage Lender must provide a breakout of all items payable by the buyer and seller as
shown on the Post Closing Review Checklist (15.20.1-2) and in the Stacking Sheets to the
Master Servicer (15.22-25). Lenders are encouraged to use the form provided by the
Commission if fees are not broken out in the Final HUD 1 Settlement Statement. Internal Forms
are also acceptable if details provide sufficient information.
FINAL DOCUMENTS
For additional information regarding the final collateral package, refer to the Bank of America
Correspondent Lending Web site Seller Guide, which can be accessed from the Correspondent
Lending Web site home page.
(Rev. 07/01/11) LOAN PURCHASE AND DELIVERY 12.7
Within 120 days after purchase, Bank of America must receive original loan documents relating
to each loan purchased, including:
A. Title policy (or its equivalent, in states where title insurance is not offered)
B. Recorded Deed of Trust or applicable security instrument
C. Recorded corporate assignment or its equivalent
A completed Final Documents Cover Sheet (Bond Loan) (15.28) must be included for each loan.
Send the Final Documents Cover Sheet (Bond Loan)
And Documents To:
Bank of America, Home Loans Servicing, LP
Attn: Florida Document Processing
4951 Savarese Circle
Mail Code: FL1-907-01-11
Tampa, FL 33634
Mortgage Lenders must submit a title insurance policy to Bank of America for every loan
funded. The title insurance policy must meet specific requirements and contain provisions
defined by Bank of America. Mortgage Lenders must provide Bank of America with the final
title insurance policy within 120 days from the loan funding date.
The title policy and/or preliminary title report must include a minimum six months’ history of
property ownership, from the effective date of the policy or preliminary report. The purpose of
this history is to determine that the property seller has been on title for at least the preceding six
months. For more information, refer to the Bank of America Correspondent Lending Web site
Client Guide.
If the six-month history indicates that the property is being sold by a relocation company, the
Master Servicer requires that a copy of the sales contract between the previous owner and the
relocation company be included in the loan file submitted for purchase.
PCCS Business Relations Web Site
https://dms.bankofamerica.com
The PCCS Business Relations Web site offers a secure environment for Mortgage Lenders to get
information regarding the documents that Bank of America needs to fulfill internal and
governmental rules. Featuring various Mortgage Lender benefits, this Web site:
∙ Generates reports of the outstanding and received documents associated with a
specific Mortgage Lender.
∙ Provides a way to look up an individual loan to find out the outstanding and received
documents associated with that loan.
(Rev. 07/01/11) LOAN PURCHASE AND DELIVERY 12.8
∙ Provides a way for Document Management Services (DMS) to communicate relevant
information to Mortgage Lenders.
When logging in to the PCCS Business Relations Website, your Bank of America Client ID is
your User ID. Contact the Document Procurement Department by phone at 213-345-1331 or by
email at PCCS.BusinessRelations@bankofamerica.com for passwords.
COMMON EXCEPTIONS THAT DELAY PURCHASE
1. The Borrower’s name must be typed under their signatures on the Note and Deed of
Trust. This includes 2nd mortgages.
2. Incomplete packages are not acceptable. The Master Servicer cannot purchase Mortgage
Loans that are incomplete. Please review the applicable checklist and ship a complete
file. Incomplete files slow up the purchase process.
3. 1st Mortgage Loans must be endorsed and assigned to the Master Servicer: Bank of
America, N.A.
2nd Mortgage Loans must be closed in the name of the Commission: Washington State
Housing Finance Commission.
4. When recorded documents require a correction, fax a letter of intent to re-record to the
Master Servicer that includes the correction being made and to which documents. Do not
wait for the original document to be returned.
5. Please send a pay history with your exceptions.
6. Marital status needs to be indicated on the Deed of Trust for both the 1st and 2nd
mortgages.
7. Evidence of insurance (MIC/LGC/LNG) is required prior to purchase on loans 90 days
old from closing date.
(Rev. 07/01/11) LOAN PURCHASE AND DELIVERY 12.9
