Loans that transferred to Flagstar Bank on February 1, 2021 with PMI have two disbursements for PMI occurring during the month of January 2021. One PMI disbursement was for the January 2021 installment due, and the second PMI disbursement was for the February 2021 installment due.
Fairway/ServiceMac processed the two PMI disbursements in January 2021 at the request of Flagstar Bank as a step in the servicing transfer process. This allows Flagstar Bank time to ensure the PMI data is properly set up and loaded to their systems.
Flagstar Bank will not make a PMI disbursement during the month of February 2021 on the loans included in this servicing transfer.
Please reassure customers this is a standard occurrence during the loan transfer process, and Flagstar Bank will not begin making PMI disbursements on loans included in this servicing transfer until March 2021.
Shown below is the loan history screen highlighting this scenario:
- Mortgage Insurance Disbursement on 01/26/21 is for the January 2021 PMI due
- Mortgage Insurance Disbursement on 01/28/21 is for the February 2021 PMI due