Receiving, Verifying & Calculating a Mortgage Payoff

A Guide for Title Agency Employees

Receiving, Verifying & Calculating a Mortgage Payoff: A Guide for Title Agency Employees

When to Verify and Calculate a Mortgage Payoff

Upon receiving a mortgage payoff statement, it’s essential to verify the information to prevent fraud and ensure accuracy. This process involves verifying the payoff amount and wire instructions, and entering the information into your production software.

Steps to Verify and Calculate a Mortgage Payoff

1. Save the Payoff Statement: Start by saving the payoff statement to your file for record-keeping and future reference.

2. Verify the Payoff Amount and Wire Instructions:

• Call the Lender: To prevent cyber scams and fraud, contact the lender directly to confirm the payoff amount and wire instructions. Ensure you speak to a verified representative.

• Document Verification: Note the details of your conversation, including the representative’s name, the date, and the confirmation received.

3. Enter the Payoff Information: Input the verified payoff amount into your production software. Ensure that all details are accurate and match the payoff statement.

• Include Lender Fees: Add any fees charged by the lender to the payoff amount.

• Per Diem Interest: Calculate the per diem interest up to the date the lender will receive the payoff funds. It is advisable to add a few extra days of interest to cover any unforeseen delays in shipping or wire transfers. Any overpayment will be refunded to the borrower by the lender.

4. Special Considerations for FHA Loans: