Customer ServiceFAQ – Answers08/01/2012

1

Table of Contents• Invoices and Invoicing Pages 3-4• Payoffs Pages 5-8• Address Change Pages 9-11• Late Fees Page 12• 1098 Reporting Pages 13-16• Collateral Protection Insurance Pages 17-19• Insurance – Mortgagee Clause Page 20• Web Payments Page 21• Title Issues Page 22• Partial Releases, Oil/Gas Leases, and Other Page 23• Due Date Change Page 24 2

Invoices and Invoicing• Invoices are created based on the due date. Below is the print date chart:• Payment Due on : Invoice Generated:• 1st – 9th 15th of prior Month• 10th – 19th 25th of prior Month• 20th – 31st 5th of prior Month• If an account is in a bankruptcy status, they may, or may not get a monthly invoice. It will

depend on if they have reaffirmed the debt or sent a written request for invoices. Check with the bankruptcy department with any questions.

• The invoices will show activity since the last invoice. This consists of the monthly payment and any fees that have been placed on the account. Remember, charges for CPI will show as a negative on this activity area, when they are in fact a charge to the account.

• The bottom part of the invoice is a perforated coupon. The customer may send this in with their payment if they wish, but it is not necessary. They can write their loan number on their check or money order and we can still post the payment to their account. Invoices are sent out as a courtesy, they DO NOT need the invoice to pay their bill.

• On the back of the invoice is a lot of useful information. Many questions about forms of payment and contact information can be answered by reading and understanding the back of the invoice.

3

Back of Invoice Information

4

Payoffs • A Customer may call in and request a payoff quote on their account. We can

either mail this or give them a verbal quote. There are times that customers are looking for the current balance. Since payoffs are date sensitive, if a customer doesn’t have a closing date, a payoff might not be necessary. Please verify customer intent and if appropriate get the closing date. If the customer still requests the payoff go ahead and give it to them. If the customer requests we send the payoff to a Third Party, (another bank, mortgage company, attorney, etc.) we require the request in writing from the customer. (faxed, mailed, or e-mailed) This request must contain the following information: “Please send a payoff quote to Mr. Smith @ First Bank. Make the payoff good through 1/1/2015. Mr. Smith’s phone # is 517-555-1221 and his fax is 517-555-2121. Thank you, Mr. & Mrs. Customer; Date 12/15/2014” There is a $10.00 fax fee that will be applied to the account, to fax a payoff quote to a Third Party or to receive a VOM(Verification of Mortgage).

• When calculating payoffs, be watchful for prepayment premiums, transfer tax, legal fees, unbilled items and broker accounts. Customer Service can assist you with the calculation of these charges.

5

Payoff Screen in Weber

6

Payoff Screen II

7

Printed Payoff Information• • Account #117662• • • July 30, 2012 4:19 PM• • • Mr Fritz Michel and • Mrs. Eline Victor Work: (305)696-0080• 10516 NW 34th Avenue Home: (407)521-8706• Miami, FL 33147 Print Date: 07/30/2012• • RE: Payoff Letter Property Address: 10516 NW 34th Ave• Purchaser: Fritz Michel• • This letter provides information necessary to payoff the above referenced account. Please read it carefully to assure that the account is properly credited.• • 1. The account is currently paid through 05/01/2012.• • 2. Your total payoff for 08/21/2012 is calculated as follows:• Note Balance $26,667.22• Note Interest $1,047.64• CPI Expense $571.19• CPI Fee Accumulation $766.90• Escrow Fee Accumulation $50.00• Late Fee Accumulation $1,046.20• Legal Fees $3,195.55• Legal Fees $725.00• Legal Fees $88.75• Projected Escrow Balance $842.07• • Total Payoff for 08/21/2012 $35,000.52• • 3. The Per Diem $9.35• • 4. The per diem must be calculated to the day the entire payoff is received in our East Lansing office.• • 5. THE ABOVE FIGURES ARE SUBJECT TO CHANGE. YOU MUST CALL TO VERIFY THESE FIGURES ON THE DAY OF PAYOFF. CALL 1-800-266-7661 TO VERIFY. FIRST NATIONAL BANK OF AMERICA RESERVES THE RIGHT TO ADJUST THE PAYOFF AMOUNT AT ANY TIME DUE TO

ANY ERRORS OR OMISSIONS OF AMOUNTS HEREIN. Figures may be adjusted if any payment previously received is rejected by the institution upon which it was drawn or by escrow disbursements made from the applicable escrow account. The payoff amount is subject to final audit upon receipt.

• • 6. Any payoff that is less than full payoff may be rejected and returned. The loan is not considered paid off until all amounts due and owing are paid. Interest will continue to accrue until the balance is paid in full. Issuance of this payoff quote does not suspend the

contract requirement to make regular monthly payments when due. Applicable late charges may be applied if a regular monthly payment is past due.• • 7. The above payoff amount reflects all payments received as of the above date. Monies in transit for a regular payment or any other reason are not included.• • 8. Funds that are being held in escrow for taxes, assessments or other monies due to the buyer are not included. These funds will be returned to the buyer after the payoff is received and the payoff funds have cleared the bank.• • 9. PAYOFF FUNDS NEED TO BE PAYABLE TO FIRST NATIONAL BANK OF AMERICA AND BE IN THE FORM OF A CERTIFIED CHECK, CASHIER'S CHECK OR WIRE TRANSFER. Upon the receipt of the above stated payoff, with a per diem of $9.35 after 08/21/2012 FNBA will send

the proper deed or discharge to the county after the account is paid in full.• 10. THIS PAYOFF QUOTE IS VOID AFTER 08/21/2012. AN UPDATED PAYOFF QUOTE MUST BE OBTAINED IF THE LOAN IS TO BE PAID OFF AFTER THIS DATE.• • 11. Please provide us with a new mailing address and phone number for the customer paying us off. If this isn't provided, all correspondence will be mailed to the borrower’s last known address. You may return the bottom form with the payoff.•

8

Address Change• Servicing departments may only change a mailing address over the phone if

the Customer is requesting it be changed to the property address or a previous address already on file.

• If the requested change is for an alternate address or a P.O. Box, we must have request in writing.

• The written request may be mailed, faxed or emailed. A form letter is available and should be provided to the customer.

• It is important to stress the necessity of written requests to insure customer’s Personal Financial Security and not to cause an inconvenience.(See Next Page for additional information)

9

Address Change and Identity Theft

Your Identity is in the Mail• The U.S. Postal Service handles more than 207 billion pieces of mail each month.

That's 207 billion opportunities for thieves to obtain information that can be used to steal identities. And those criminals take advantage of as many of those opportunities as they can.

• In fact, your mailbox is the riskiest non-technological point for identity theft, according to a study released in October 2007. The study, an assessment of closed U.S. Secret Service cases between 2000 and 2006 which had components of identity theft and identity fraud, showed the top two methods of non-technological identity theft were re-routing of mail and mail theft. In other words, your mailbox is a serious threat to your identity.

Where'd My Mail Go?• Re-routing of mail topped the list of non-technology threats for identity theft. The re-

routing is usually accomplished by Change of Address. Placing a change of address with the U.S. Postal Service is as easy as filling out a form online or mailing in a card that can be picked up at the post office.

• Identity thieves collect addresses. They may drive by your residence, go through the phone book, or collect trash that contains your address. Then requesting a change of address takes just a matter of minutes.

10

Weber Change of Address Form• Here is a sample of the letter that can be found in Weber

Servicing Letters.

LOAN ACCOUNT CHANGE AUTHORIZATION FORM

Name: «purchaser_name» Last 4 digits SSN: __________ Name: «purchaser_name2» Last 4 digits SSN: __________ DATE: _________________ Account # «account_number» I authorize FIRST NATIONAL BANK OF AMERICA to make the following changes to my existing account. NEW ADDRESS: _____________________________________________________ City, State ______________________________________________________ Home Phone ________________________Cell# __________________________ Business Ph _______________________________________________________ E-Mail _______________________________________________________ OTHER INFORMATION Customer Signature: _____________________________________________________ Date Signed: ___________________________________________________________ Input Change Done By: _________________________ Date: ____________________ 11

Late Fees• On the purchaser screen, there is a box in the lower right hand side of the screen, it details

the late fee. This box will show the if a late fee and if the customer has a grace period.

• Some payments are made and then effective dated back so a late fee might be assessed but the system should correct this once the payment is processed. When Servicing departments get calls disputing late fees, we normally first check their history. Chronic late payments speak for themselves, however, we will use our own judgment and request our supervisor to waive a late fee. If a purchaser has had a late fee waived, we explain this is a one time courtesy.

• When a customer is disputing the late fee itself (Amount, # of Days), we refer to the Note in Dart(our document imaging system). Servicing Agents can read the details to the customer. If the customer requests a copy of the note, one may be provided.

12

1098 Mortgage Interest Statement

• Prior to January 31st of each year, Customer Service will provide the customer the amount of interest they paid on a real estate note, as well as taxes First National paid from the customer's escrow account during the prior calendar year. This statement should be retained by the customer for tax records.

• The customer’s annual statement will be sent to the address on our records as of December 31st.

• 1098 Forms are issues for amounts of $600 or over. For amounts less than $600, a letter informing the customer of the amount of interest is sent.

13

1098 Tax Statements• Duplicate copies can be retrieved from Weber by Following

these instructions:• Web Applications• Servicing EOY• Enter Loan Account Number• 1098 Corrections

* February, March, April are the busiest months for these requests. Customers either have misplaced or lost their original 1098 and request a duplicate for tax purposes.

14

Copy of a 1098 Tax Form

15

Copy of a 1098 Tax Form

16

Collateral Protection InsuranceWhat You Should Know About Collateral Protection Insurance(CPI)

• You should know the following facts about Collateral Protection Insurance

(CPI):• CPI is designed to protect the interests of the Lender.• CPI provides limited coverage on the structure up to the maximum of the balance

due on your loan or the insurable value of the property, whichever is less. • Your CPI policy will cover only the Actual Cash Value (ACV) of the structure and

NOT the Replacement Cost Value (RCV). Even in the event of a total loss, this coverage may not satisfy your loan.

• Your CPI premium will be assessed against the principal balance of the loan unless the customer provides evidence to show the value of the structures on the property is less than the principal balance.

• This insurance is more expensive than traditional insurance and has high deductibles.

• There is no coverage for equity in your home, contents or liability.• Set-up fee for CPI is $40.• Monthly Fee is $8.50.

17

Additional CPI Information• The servicer of your loan, First National Bank of America, will

send an invoice that includes the CPI premium and an additional $8.50 transaction fee. CPI premiums (which are separate and apart from the $8.50 transaction fee) will be either paid from the escrow account (if escrowed) or paid in addition to the monthly payment. Disbursements from the escrow account for the payment of CPI will be made monthly when the premium is due. The $8.50 transaction fee will need to be paid in addition to the regular monthly Principal, Interest, and Escrow payment, and along with any other additional fees that may be assessed against the account.

18

Dispute of CPI• First National urges all customers to purchase a hazard

insurance policy as soon as possible. CPI and the $8.50 transaction fee will be cancelled when First National receives acceptable proof of insurance from the customer or their insurance agent.

• First National doesn’t wish to have double coverage on the collateral, but we also can’t leave our customers with the financial responsibility to pay for a Mortgage on a house that they cannot live in due to a disaster.

• Customers receive all of the CPI information in the early disclosures that are provided to them during the loan process. A copy of Informational CPI form is required to be signed at or before closing. 19

INSURANCE MORTGAGEE CLAUSE

FNBA

ISAOA

PO Box 980

East Lansing, MI 48826 20

Web Payment Issues• Have they forgotten their user name?

• We can go to magic writer and give them their user name.

• Have they forgotten their password?• First National does not have administration control over password and security questions

on MagicWrighter website. We are able to reset these multifactor (password and security questions).

• Customer is locked out of their Account.• If they are locked out of their account, they can wait until the next day or we can reset

their account as previously mentioned.

• First Time Set up.• If the customer does not completely set up the account in the system, the following

problem could arise. • Customer states that they set up last month, but they may not have made a payment when they

set up their account. We will have to delete their account and stress that they have to make a payment the first time they set up their account or it will not be properly set up, once they have made a payment and successfully set up their account, they can go in periodically and check their account without making a payment.

21

Title Issues• There can be many reasons for title issues. Customer Service

would need documents and information to be able to help rectify the issue. Ask the customer to fax or email the title work that shows the problem along with any documents that may assist in showing the problems.

• Inform the customer that this process can take up to 7 days for review and response.

22

Partial Releases, Oil/Gas Leases, or Other Lien subordinations

• When a customer is requesting First National to prepare or approve anything that will affect our lien position, an underwriter will have to review the transaction.

• First National requests that all documents that we are going to have to sign be forwarded as well as a copy of the agreement. If there is a large sum of money in the transaction, First National might require that a principal reduction be made.

• Typical fees:• Partial Release - $300• Oil and Gas - $150

23

Due Date Change1. The account must be current.2. To change due dates, the customer is responsible for paying the interest per diem

for the number of days between original date and proposed new date.3. The date may only be moved ONCE in the life time of the loan.

EXAMPLE:

• Customer wants to move their due date from the 1st of the month to the 10th.• That is a 9 day move. Take their Interest Per Diem and multiply it by number of days. • (Per Diem 10.7265 x 9days =$96.54) The customer must pay us this one time interest

charge of $96.54 and sign a due date change letter to move the date to the 10th.• If a customer moves his date outside of the current month, say 15th of January to the 2nd

of February, they must pay the Per Diem and the monthly escrow amount due for January, since they are not making a payment in the month of January. (Per Diem 10.7265 x 9days + $156.44 escrow = $252.98)

• Sometimes these due date changes can be very expensive. We try to use their grace period and move the date maybe a few less days to reduce the cost. This works great for customers on Social Security.

24