Frequently Asked Questions

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Lender Questions

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Questions & Answers

Lender Questions

Why retain mortgage servicing rights?

Mortgage servicing rights can be a valuable asset for any depository institution or independent mortgage banker. Servicing assets offer many financial and relationship benefits and entail various risks as follows:

  • Maximize value – servicing release premiums in the secondary market have declined sharply. The credit quality of new loans and servicing rights is extremely high and note rates are near historic lows. Retaining servicing enables you to capture the true economic value rather than selling these valuable assets into a depressed market.
  • Build relationships – servicing creates a direct and long-lasting relationship with your borrowers. Using detailed monthly billing statements with customized marketing messages, you can promote other products and services and generate important referrals to leverage and maximize your relationship with each borrower.
  • Stabilize earnings – servicing creates a valuable annuity income stream to offset fluctuations in origination volumes and profits and secondary marketing gains. This stable source of cash flow adds significant value to any loan origination franchise.
  • Accelerate fundings – selling directly to the agencies allows you to obtain funding more rapidly and more consistently than by selling to correspondent lenders and the traditional market aggregators. Shortened delivery and settlement times enable you to improve the efficiency of your warehouse lines and increase overall loan volumes.
  • Eliminate investor overlays – rapidly increasing and changing investor overlays complicate your underwriting and delivery with greater risks for errors and repurchase demands. Selling directly to the agencies provides a more consistent set of underwriting guidelines and pricing policies and a more reliable secondary market outlet for your loans.
  • Diversify funding sources – many of the major correspondent aggregators have scaled back or withdrawn from the market completely due to capital constraints, regulatory burdens and changing business priorities. Selling directly to the agencies creates more stable sources of liquidity for your loans during different interest rate and credit underwriting environments.
  • Strengthen protection from repurchase demands – many individual lenders prefer to negotiate directly with the agencies when presented with demands to repurchase loans. Having a direct funding relationship with the ultimate investor can provide a more balanced review and assessment of each file.
  • Servicing risks – the ownership of mortgage servicing rights entails significant risks that new servicers should carefully consider. These risks include faster than expected prepayments, the funding of monthly advances for delinquent borrowers, the funding of escrow disbursements, the funding of interest shortfalls on payoffs for conventional loans, maintaining the state licenses required to own servicing rights, possible claim filing errors and curtailments, and certain foreclosure costs not fully reimbursed. These various costs should be carefully factored into your business analysis and monthly cash flow projections.

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Why use a subservicer?

  • Realize economies of scale – working with an established and major subservicing company will be more cost effective than building a new in-house servicing operation or using an existing servicing platform with less volume. The costs for the required servicing technology, trained staff, different support systems and compliance monitoring all make it extremely difficult to be cost competitive without servicing at least 100,000 loans.
  • Streamline agency approvals – it is much easier and quicker to prepare and submit your agency seller/servicer or issuer applications based on using an experienced subservicer rather than documenting the detailed policies and procedures required to support an internal de-novo mortgage servicing operation.
  • Access enhanced technology – commercial banking systems may not be fully current with all secondary market remitting and reporting methods and the various new agency, state and local requirements for collections and default servicing. Purchasing and installing a highly specialized loan servicing system together with the required support systems is prohibitively expensive without significant loan volumes.
  • Enable regulatory compliance – the secondary market agencies, federal banking regulators, state attorneys general and local municipalities have all imposed significant new requirements for mortgage loan servicing. Servicers are now required to provide more extensive and frequent reporting of all servicing, loss mitigation and default management activities. A proven subservicer has the technology and expertise to perform certain of these servicing-related duties on your behalf.
  • Avoid penalties and fines – the costs for non-compliance have risen dramatically with higher penalties and compensatory fines being imposed by the different regulatory authorities and mortgage agencies. Failure to comply exactly and fully with these requirements exposes servicers to significant costs and liabilities that can completely eliminate the economic benefits of owning servicing.
  • Increase scalability – using a subservicer enables lenders to adjust their volumes more easily in response to changing market conditions and secondary market pricing opportunities, without having to support the fixed costs for an in-house servicing operation. Retained volumes can be increased or decreased on a monthly basis and portfolios can be purchased or sold with more flexibility and speed of execution.
  • Improve investor flexibility – using a third party servicing specialist provides the widest range of secondary market investor options for lenders. Based on current market conditions, you can alternate between cash window vs. MBS execution, different remittance schedules, Ginnie Mae I’s or II’s, etc. without having to consider the impact of these different methods on your internal servicing operation, staff and systems.
  • Expand your product range – by working with an experienced subservicer with strong staff and technology, you firm can offer a wider range of fixed rate and adjustable rate loan programs, provide various types of conventional and government loans and access specialized housing agency and other financing programs without having to develop and support the required servicing for these different products internally.

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Why choose Dovenmuehle?

  • Market leadership – Dovenmuehle is the largest and oldest subservicing firm in the United States with more than 250 financial institution clients nationwide. Our clients include commercial and savings banks, credit unions, independent mortgage bankers, state housing finance agencies and municipal mortgage lending organizations.
  • Industry endorsements – Dovenmuehle is the only subservicing company endorsed by the major financial institution trade associations including the National Association of Federal Credit Unions (“NAFCU”) Services Corp. and the various mortgage agencies.
  • Agency experience – Dovenmuehle is one of the largest subservicers for lenders selling loans to Fannie Mae, Freddie Mac and Ginnie Mae. We support various remittance methods for these investors and facilitate compliance with their new servicing requirements. Dovenmuehle is also the recommended subservicer for the Federal Home Loan Banks nationwide.
  • Consistent innovation – Dovenmuehle has lead the subservicing industry with creative solutions and new products and services such as VIP Private Banking, national lockbox collections, private label monthly billing statements with loan officer contact information, electronic billing statement options and enhanced modules for teller payment processing.
  • Delinquency and default controls – Dovenmuehle is highly experienced in managing the credit quality of diversified types of mortgage loan portfolios including first time and affordable home buyer programs. Dovenmuehle also has extensive experience with HAMP modifications, other borrower outreach and loss mitigation solutions and default administration nationwide.
  • Client support – Dovenmuehle provides an extremely high level of commitment and support to its clients regardless of size. A dedicated Account Manager is your single point of contact who will provide regular project status reports, update calls and relationship reviews to ensure your needs are being fully met at all times. Your Account Manager also ensures that your institution is using the best combination of Dovenmuehle services based on your loan products, investors and overall strategic objectives.
  • Management consistency – the management team of Dovenmuehle is highly experienced and has worked together for many years creating stability throughout the organization. This stability ensures consistent levels of service are being provided to our clients and their borrowers.
  • 100% focus on subservicing – Dovenmuehle does not originate loans, purchase servicing portfolios or offer any other financial service in competition with our clients. The overall performance of your servicing portfolio and the satisfaction of your mortgage borrowers are our only priorities.
  • Client flexibility – every client has unique and different requirements. Our programs are designed to fit your specific needs and we work with each client to customize solutions based on your volumes, investors, products, client needs and business plans.

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Borrower Questions

May I make extra principal payments on my loan and what are the benefits of these extra payments?

You may make extra principal payments to reduce the outstanding balance of your mortgage loan at any time as long as you are up-to-date with your required monthly payments. These extra principal payments would allow you to pay off your loan sooner and reduce the total interest costs over the life of the loan. Please call our Customer Service Department at 800-669-4268 to discuss how different payment options would impact the maturity date and total interest costs for your specific mortgage loan.

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How can I change the mailing address on my mortgage account?

Please send a written request with your loan number and signed by all borrowers on the account to the following address:

Dovenmuehle Mortgage, Inc.
Customer Service Department
1 Corporate Drive, Suite 360
Lake Zurich, IL 60047-8945
Fax number: 847-574-7659

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How can I order a payoff statement?

You may order a payoff statement calling our automated telephone service at 800-669-4268 and following the prompts for payoff statement requests. Payoff statements are mailed within two business days after your request is received. You may also request to have your payoff statement faxed within one business day.

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How can I order a verification of mortgage?

Please send a written request with your loan number and signed by all borrowers on the account to the following address:

Dovenmuehle Mortgage, Inc.
Customer Service Department
1 Corporate Drive, Suite 360
Lake Zurich, IL 60047-8945
Fax number: 847-574-7659

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How can I request to have private mortgage insurance removed from my loan?

Please call the Customer Service Department at 800-669-4268 to request information on the requirements to eliminate private mortgage insurance. These requirements vary depending on the type of mortgage loan.

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What is your street mailing address for overnight and other courier deliveries?

Dovenmuehle Mortgage, Inc.
Customer Service Department
1 Corporate Drive, Suite 360
Lake Zurich, IL 60047-8945

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When will I receive my surplus escrow funds after I pay off my loan in full?

Surplus escrow funds are typically returned within 15 business days after the date of the payoff transaction. If you are moving, please be certain to provide your new mailing address.

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Where should I send my real estate tax bills for payment?

Dovenmuehle Mortgage, Inc.
Customer Service Department
1 Corporate Drive, Suite 360
Lake Zurich, IL 60047-8945

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Where should I send my homeowners’ insurance bills for payment?

Dovenmuehle Mortgage, Inc.
Customer Service Department
P.O. Box 57046
Irvine, CA 92619-7046

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Where should I send other requests or general correspondence?

Dovenmuehle Mortgage, Inc.
Customer Service Department
1 Corporate Drive, Suite 360
Lake Zurich, IL 60047-8945
Facsimile no: 847-574-7654

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Where can I send Notices of Error or Requests for Information?

To receive protections provided under RESPA please send notices of error and requests for information to the following address, including the specific attention line noted: Attention:  Mail Stop NOE1290, 1 Corporate Drive, Suite 360, Lake Zurich, IL  60047.

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