26
Sep
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Funding of Principal and Interest (P&I) Advances

In fourth quarter 2014, our servicing system provider will install custom programming which will allow for funding of Principal & Interest advances to be controlled at the payee level and enhance the advance repayment process. This change will only apply to your organization if you currently have portfolios with Scheduled/Scheduled or Scheduled/Actual remittance types or if you sell loans with these remittance requirement in the future.

With this enhanced repayment process, we can no longer programmatically debit Cenlar’s corporate cash account if a shortfall exists when an advance is calculated. Therefore you will be responsible to fund any shortfalls directly to the investor’s P&I custodial account. It will be imperative that your deposits are made to the custodial accounts timely, in order to avoid overdrafts and ensure you remain in compliance with investor guidelines. The timeline for the monthly P&I advance calculation will not change. We will continue to provide you with written notification of the required advance along with supporting documentation.

P&I advance recoveries will be deposited daily, via electronic funds transfer, to an operating account at a financial institution of your choice. Daily advance repayment reports to support your advance recovery credits will be uploaded to your FTP site.

Please provide your Relationship Manager with ACH credit instructions for the operating account(s) to receive your P&I advance recoveries by end of day, Friday, October 3, 2014.