What is a tax and/or insurance escrow? TOP

An agreement between the lender and borrower where the borrower pays monthly into an account an amount equal to 1/12th the total property tax and/or hazard insurance premium due for a 12 month period.

The escrow account is administered by the mortgage servicer and is a non-interest bearing account.

The escrow funds are disbursed by the servicer for payment of property tax and/or hazard insurance premiums when due as set forth in the loan documents.

I just received my escrow analysis, why did my monthly escrow payment increase? TOP

An escrow payment is increased after an escrow analysis has been performed that shows the property tax or hazard insurance amounts have increased from the previous year or will increase due to changes in the appraised value of the property or the tax rates. An escrow payment may also increase if the prior year escrow was not sufficient to cover the items paid.

Investor Loan Services, Inc. pays your taxes and/or insurance in the amount billed by your tax collector or insurance company.

Please contact your local tax collector or insurance company for information pertaining to tax amounts, increases or decreases, assessed values, tax rates, copies of your tax receipts and insurance premium information.

What is a FPI (force placed insurance) fee? TOP

Current property insurance is required to be on file for loans secured by improved property. If your insurance changes in any way, please send a copy of the new policy to us.

If we do not have evidence of active/adequate property insurance on file, we may obtain Force Placed Insurance (FPI) coverage on the remaining principal balance.

FPI is temporary insurance and is purchased from an agency of our choice and you must reimburse the lender for the charges.

FPI covers ONLY the lender’s interest.

I have my own insurance, so why am I being charged a FPI fee? TOP

If you have a current hazard insurance policy that meets the lenders minimum requirements, it is possible to discontinue the FPI charges.

To show that you have a current hazard insurance policy, contact your insurance provider. Ask your insurance company to fax a copy of the “declaration” page or proof of insurance to (956)399-8794.

Make sure the insurance provider lists the lender as the mortgagee. Please allow 2-3 days for this information to be updated before calling to verify receipt.

My insurance company wants the “mortgagee clause” to add to the declaration page of my insurance policy. What is it?

The “mortgagee clause” lists the lender and the lender’s information. Please call us and we will provide this information.

My property was damaged, what should I do? TOP

Contact your insurance company to begin the claims process and notify Investor Loan Services at 956-399-1199.

If your mortgage balance was covered through force placed insurance, contact Investor Loan Services immediately.

Please keep us informed as your claim progresses so that we may provide any necessary instructions.