What’s your experience being with August REI Note Servicing?

Question

Feedback on August REI Note Servicing.??

Has anybody used them and what has your experience been?

Chris Seveney · Answer

They have a decent reputation in the space. Dan hit the nail on the head which is vendors have ebb and flows, I have an attorney I used for years, completely dropped the ball - denied it and now we most like will have to litigate the issue.

if its performing note not sure I ever had a servicer screw that up, its when you get the non performing loans that it can be more critical.

Chris Seveney · Answer

While it's not illegal in most states to service your own loans you have to meet CFPB compliance with things such as proper monthly statements (with correct language), escrow analysis, yearly tax forms and other items such as sending your privacy policy etc.

if you want to do it right, self servicing is typically an awful idea

Charles Campbell · Answer

I have a couple notes there now, day to day payments and disbursements have been good, with on time communications of receipts and transfers. I have had other notes serviced there with satisfactory results. I know other investors who have reported issues and I recall there were delays in communications when getting my accounts set up there in 2017 or 2018 but it has been easy to add notes to my accounts since then.

Aryia Bala · Answer

If your looking to find a new servicer - FCI is the biggest player in the space. (Best for a lender to service their own loans if possible)

Alecia Bolton · Answer

I bought a loan that was service by August. My experience was great. The loan paid off early...and the borrower's experience was not great. August totally dropped the ball on getting the payoff documents over to the borrower and he ended up threatening them with legal action. But again, I as the lender had a great experience.

Jay Redding · Answer

We do have a few.

Jay Redding · Answer

Joe S. - We have found that each servicer has their own strengths and weaknesses. We primarily utilize, FCI, Madison Management Services, Allied Services and Provident Loan Servicing depending upon where the loan is at, what we want to do with the loan, who the borrower is and how much follow-up we feel the borrower will need to stay on track. I honestly don't remember where that loan went to. It has been too long ago and to many deals ago.

Jay Redding · Answer

I purchased a performing note from an individual that was serviced by August REI and I had to literally tell the asset manager of the loan what they needed to do in order for the loan to be transferred. I don't know if she was new or what, but I had to provide step by step instructions on what their responsibility was and what they needed to provide to the new servicing company. The loan finally got transferred ok, but August REI lacked knowledge and speed. It was a slow process. That is my experience of 1, so my experience may be out of the norm. Not a good first impression however. We have no notes serviced by August REI.

What’s your experience being with August REI Note Servicing?

What’s your experience being with August REI Note Servicing?

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