Loan Servicing FAQs

We have the answers to the most common questions after you close on your loan.

Have questions about what happens after you close?

Now that the closing documents have been signed, you might be wondering, “What’s next for my loan?” To assist you with the next steps of the mortgage process, here are some frequently asked questions.


Payments

The bill payment service may withdraw the amount due from your account and send a check to NASB. This process may take approximately two weeks before the check posts to your account.

Payments without a mortgage coupon should be mailed to:

North American Savings Bank
PO Box 808002
Kansas City, MO 64180-8002

*Please include your loan number on the check

The transfer of mortgages is common in the mortgage industry. It fulfills the need of investors and makes funds available for other home buyers. It also helps NASB ensure that we can find you the best rate possible! There are no changes to your loan terms during the transition period. 

To see how extra payments will impact your loan terms, visit NASB’s mortgage calculators here.

Yes, with some stipulations. It must be a revocable living trust, the property must be owner-occupied, and borrowers must be the beneficiary. Not meeting these requirements could cause the "due on sale" option to be exercised. Once the property is transferred into a revocable living trust, please mail a copy of the Certificate of Trust and the Recorded Deed to:

North American Savings Bank
Attn: Loan Customer Service
903 E. 104th Street
Suite 400
Kansas City, MO 64131

You will need to refinance your mortgage. To speak with a NASB loan officer about your refinance options, please call 1-855-465-0753.

Your mortgage will be reported as delinquent any time a payment is made after the last business day of the month before the next payment due date. It is possible that an error occurred with your payment’s processing. An example may be the payment could have been misapplied or sent to the originating lender and not provided to NASB on time.

Customer Service will complete a credit correction if the payment was determined to be on time. If you believe that your payment should not have been reported as delinquent, please call Customer Service at (800) 677-6272, then option 5, option 2.

We order inspections to ensure the property is still occupied if the mortgage payment has not posted by the last business day of the month before the next payment due date.

The mortgage deed included in your closing package has a paragraph titled preservation of property, which states that any associated costs are to be paid by the borrower.

If you are looking to make your final payment, please complete and submit the form below to get your loan balance and payoff information.

Payoff Request Form 
If you have any questions, please contact Loan Customer Service at 1-800-677-6272 option 5, option 2 or via e-mail at servicing@nasb.com.

A mortgage Release of Lien will be prepared and mailed, or electronically delivered, to your county for recording within 30-90 days of the paid in full date. The original, recorded Release of Lien will be sent to the mailing address on record at the time of payoff.

Payoff overpayments and/or escrow refunds will be mailed within 20 business days of the paid in full date. To update your mailing address, please download and return our address change request form here.

  1. The Homestead Exemption must be approved by your tax office. 
  2. The approval letter must be submitted to NASB and contain the new tax amount and effective date. If your tax office has approved you for a Homestead Exemption, you should submit the approval letter to NASB, including the new tax amount and effective date. Please note that NASB cannot accept property value information. We must have the tax amount to adjust your account. 
  3. Once the documentation is received, the Tax department will adjust the tax amounts and, if applicable, request an escrow analysis (only if the new tax amount is lesser or greater by $250 or more). 
  4. Send a secure message by logging into your account through Internet Banking and use the "Contact Us" tab at the top of your Account Summary page to submit your approval letter. Or, you may fax it to 816-316-4508.


Taxes

The type of tax bill you received will determine whether you need to forward that bill to us. You should either fax or mail only your delinquent tax bill.

Please email your bill to loanservicingtaxes@nasb.com.

You may email the updated tax documentation to NASB loan servicing at loanservicingtaxes@nasb.com, including the new tax amount (not property value), effective date, and loan number. We cannot change the tax amounts and run a new analysis until the effective date of the exemption, or if the taxes have already been paid and the next due date supports the change date.

Please call Loan Servicing Customer Service Department at 800-677-6272, option 5, option 2.

If your taxes were due within 60 days of your closing/signing date you should receive a tax bill in the mail. Please contact the settlement agent that closed your loan to ensure the funds collected at closing were sent to your local tax assessor. If the due date for the tax payment is outside of 60 days from your closing/signing date and you set up an escrow account with your new loan, your new servicer should make the tax payment for you.


Escrow

An escrow account is used to make payments on your behalf for property expenses, such as real estate taxes and insurance premiums. We collect funds for your escrow account as part of your monthly mortgage payment. Here's a blog that help explain how escrow works. 

An escrow analysis is a review of your escrow accounts to determine if the current monthly escrow payment is enough to pay taxes, insurance, and other bills when due. Escrow analyses are typically run annually based on your property tax payment cycle. Occasionally, the payment of taxes or insurance causes the escrow account to reach a negative balance, and it may be necessary to perform more than one analysis during the year.

Escrow accounts are required and cannot be waived on FHA (Federal Housing Administration), GRH (Guaranteed Rural Housing) or VA (Veteran Affairs) loans.

Escrow accounts on other types of loans may be waived if certain conditions are met. Some basic conditions to determine eligibility for escrow waivers are: 

  • The loan-to-value ratio of your loan must be 80 percent or less 
  • There have not been any payments over 30 days late in the last 12 months 
  • No 60-day late payments in the last 24 months
  • Loan is not in a Special Flood Hazard Area (SFHA)
  • The loan cannot be in foreclosure, bankruptcy or loss mitigation
  • May require a two-year payment history

Yes, an escrow account can be set up after the loan closes. Simply send an email request to servicing@nasb.com. 

 

 

As the bills for your real estate taxes and insurance premiums change, the amount needed to be collected every month also needs to be updated. Even on a fixed-rate loan the escrow payment may vary, causing a change in the total payment owed. Please see your escrow analysis for more information.

Escrow shortages generally occur when property taxes and/or insurance payments increase. Specific questions regarding tax amounts or homeowner's insurance should be directed to your local tax authority or your insurance agent.

The following are other common reasons for an escrow shortage:

  • An increase in the tax or insurance bill. 
  • Underestimation of the tax assessment on a new construction loan that was based on land only. 
  • An unanticipated disbursement, such as a supplemental tax bill. 
  • Force placed taxes or insurance.
A surplus is often caused by a decrease in taxes or insurance payments, but a surplus can also occur when too much has been collected for the escrow account at closing or in the previous year. It is possible to have a surplus, even if tax and insurance amounts have increased over the past year. When this occurs, the monthly escrow payment may be increased to ensure there are enough funds to pay the increased taxes and insurance.

NASB refunds escrow surpluses to the borrowers. Borrowers may cash their surplus check and use the funds however they choose, including applying it to their loans.

If your loan is current and your escrow analysis is completed as part of the regular annual review cycle, your surplus check will be attached to the statement. If your escrow analysis was completed outside of the regular annual review cycle, the surplus check will be mailed 7-10 business days from when it was processed.

If you lost your surplus check after receiving it or it was stolen from you, please contact the Customer Service Department at 800-677-6272, option 5, option 2, so we can place a stop payment on the check and reissue one to you.

To release the escrow holdback, please submit a signed letter to NASB confirming the repairs are complete and that you are satisfied with the work. Include any outstanding invoices and/or paid receipts for the repairs. Upon receipt of these items, we will order an inspection to confirm.

The inspection fee comes from the funds we are holding for the repairs unless extra funds have been set aside for the inspection. You may be required to pay the inspector when he or she arrives to perform the inspection.



Insurance

Please make sure that NASB is listed as the first mortgagee (or second if NASB holds your second mortgage on the policy) and submit the documentation in one of the following ways.

Mail to:

North American Savings Bank
Attn: Loan Service Escrow Team
903 E. 104th Street
Suite 400
Kansas City, MO 64131



Private Mortgage Insurance (PMI)

PMI is extra insurance that lenders require borrowers to pay if the borrower puts less than 20% of the home’s value in a down payment. This protects lenders against loss in the unlikely event that a borrower defaults on their mortgage loan.

To find your loan to value (LTV) ratio, divide your current principal balance by the lesser of the original appraisal amount of your home or the purchase price. For New York properties, the current principal balance is divided by the original appraisal value; the purchase price is not used.

PMI will automatically terminate on the date that the principal balance of your loan is scheduled to reach 78% of the original value of the property. If your loan payments are not current when your loan reaches the termination date, your PMI will automatically terminate on the first day of the first month after the date it becomes current. A notice will be sent to the mailing address that we have on record for you when PMI coverage is terminated, and no additional action will be required of you for termination.

You can request the cancellation of your PMI once the scheduled principal balance or actual principal balance of your loan reaches 80% of the original value of the property if all the below requirements are met:

  • You must be current on your mortgage payments.
  • You must have a good payment history. A good payment history means:
  • No payments 30 days past due in the last 12 months.
  • No payments 60 days past due in the last 24 months.
  • Your current property value must be at least equal to its original value and the equity in the property is unencumbered by a subordinate lien.
  • Your mortgage loan must meet the applicable loan to value (LTV) ratio.

We’ll notify you in writing that PMI coverage is being removed and the effective date of the cancellation along with your new monthly payment amount.

A principal balance reduction is the application of a large sum of money towards the principal balance of the mortgage.

An increase in property value as a result of the local real estate market and any non-substantial improvements to the home.

“Minus escrow disbursed” could refer to one of the following: monthly private mortgage insurance (PMI) payments, escrow overage disbursements, or other miscellaneous disbursements such as a fax fee or an inspection fee.

Your 1098 may show that no taxes were disbursed because the taxes were paid at closing, the taxes were not paid from the escrow account in the year the 1098 is reporting on, or the loan was paid off before the taxes were due.

Only 13 months of interest can be claimed in a year – January through January. If you made your January payment in December of the previous year, the January interest can be claimed, because interest is in arrears – meaning the January payment includes December’s interest.

The IRS only requires the social security number of the primary borrower on the 1098.

Each year, NASB will mail mortgage interest statements, form 1098s on active or inactive accounts by January 31.

The 1098 statement details all interest, taxes, and insurance paid on a mortgage for a given year. The lender is required to send the customer this statement by January 31 of each year.

The points paid at closing may not appear on your 1098 statement if NASB was not the originating lender or if the loan was a refinance. If you have further questions about how to claim points, please speak with your tax advisor or attorney.

Please call Loan Servicing Customer Service Department at 800-677-6272, option 5, option 2.

Please call Loan Servicing Customer Service Department at 800-677-6272, option 5, option 2.

Please call Loan Servicing Customer Service Department at 800-677-6272, option 5, option 2.

The Servicemembers Civil Relief Act (SCRA), an expansion of the Soldiers’ and Sailors’ Relief act of 1940, is a federal regulation that provides certain protections for military members and qualifying dependents as they enter active duty. Types of loans protected include, but are not limited to, mortgages, lines of credit, credit cards, installment loans, and student loans.

Service members who incurred their obligation prior to active duty service may be eligible for protection. This includes service members on active duty, reservists serving on active duty, commissioned officers of the National Oceanic & Atmospheric Administration, and/or Public Health Service and members of the National Guard serving for a period of more than 30 consecutive days under Federal orders.* Protections may extend to qualifying dependents, even if the service member is not on the account.

*Some state laws provide benefits for National Guard service members called to active duty under state orders. Please contact us if you believe this pertains to you.

Service members who incurred their obligation while on active duty, those serving in the National Guard for a period of less than 30 consecutive days, Department of Defense civilians, contract employees, and military retirees are not eligible for protection.

  • Reduction of your interest rate to 6% (if applicable)
  • Waiver of most fees
  • Protection from foreclosure proceedings
  • Continued protection for 12 months after discharge

A written request for SCRA protection and a copy of the service member’s orders must be submitted to NASB:

Email: servicing@nasb.com

Mail: 
North American Savings Bank
Attn: Loan Customer Service
903 E. 104th Street, Suite 400
Kansas City, MO 64131 

If you have questions, please call Loan Servicing Customer Service Department at 800-677-6272, option 5, option 2.

A successor in interest is someone who acquires an ownership interest in a property secured by a mortgage loan by transfer upon the death of a relative, as a result of a divorce or legal separation, through certain trusts, between spouses, from a parent to a child, or when a borrower who is a joint tenant or tenant by the entirety dies.

Please call Loan Servicing Customer Service Department at 800-677-6272, option 5, option 2.

Cindy L.
My experience with NASB was exceptional. Everyone went above and beyond. They made the transition from applying for a loan to finalizing very easy and stress free.

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