NEW SERVICER ON YOUR NACA/CITI MORTGAGE?

We have had numerous inquiries from our members regarding the transfer of their Citimortgage NACA loans to another servicer.

The transfer is in keeping with Citi’s announcement two years ago that they would be leaving the mortgage servicing industry completely.  (https://www.citigroup.com/citi/news/2017/170130a.htm)This transfer in no way affects the terms of the loan and all the benefits of obtaining the loan through the NACA program remain in place.

Here are some tips for members whose NACA mortgages are now being serviced by a different entity:

  • The terms of the loan do not change with the servicing (principal and interest payment, interest rate, term length, etc.)
  • If the Member gets a letter from the new servicer, they should contact the old servicer to verify the servicing transfer to that entity to avoid sending payments to a scam. (The information about the servicing transfer should include: a) the date on which the old servicer will stop accepting payments b) the date on which the new servicer will begin accepting payments c) the new servicer contact information d) the specific date the right to service the loan transferred to the new servicer.)
  • The Member needs to make sure they send the payment to the new servicer on time or there will be a late fee assessed.  Loan service change is not a legitimate reason to withhold payments.
  • If they had automatic draft set up with the old servicer, make sure they stop it once payments are switched to the new one.
  • They need to carefully review the new servicer monthly statement to ensure the payments are credited accurately and the insurance company information is accurate.  This is a good practice indefinitely but should be done intensely for a minimum of three months after sending payments to the new servicer.
  • If the new or old servicer inaccurately reports late mortgage payments, dispute the reporting with the credit reporting agencies www.ai.equifax.com/CreditInvestigation  www.experian.com/disputes/main.html  and https://dispute.transunion.com  send a letter to the CFPB.
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6 Comments

  1. Marjon36
    Posted April 29, 2019 at 11:18 am | Permalink

    So my status says C&I which from what I see means things are moving along, however, my closing date per purchase agreement is tmw. 4/30/2019. if we go past that date, do we need to re sign an addendum to the original P&S

    Also what does ACA’d mean? I have seen that repeatedly on this forum. Is that a status that comes after C&I? If not, then what is the next Status I should be looking for. I have no new conditions since last week. so will I be seeing my CTC soon.

    lastly, after receiving CTC, how long does it usually take to actually have the closing?
    thanks

    • Posted April 29, 2019 at 12:39 pm | Permalink

      Hello Majon36,

      Your real estate agent should definitely get an extension for you. It will still be a few days before you close.

      C&I stands for Credit and Income, which is one of the verification steps the bank takes during the processing of your loan application. ACA stands for All Conditions Address, which is definitely a positive sign that hopefully means your file will be Cleared to Close soon.

      The time factor is not how long it takes between the CTC and the actual closing. It is the legally required three days between the creation of the final Closing Disclosures and the actual closing. Usually, when the CTC is given the closing documents can be ready in 24 hours if they aren’t already prepared. Therefore, if necessary, a closing can be done the day after the CTC if needed, although they normally just try to schedule it for a time convenient for all involved.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

  2. Shanta
    Posted May 4, 2019 at 9:54 pm | Permalink

    Hello , I am currently going through the process of buying a home with NACA and I am looking for an experienced real estate agent in the DMV area . Any suggestions ? Thanks

    • Posted May 6, 2019 at 9:17 am | Permalink

      Hello Shanta,

      There are a significant number of approved agents in the DMV (DC-Maryland-Virginia) area. Your local office can help you get connected to an agent after your are qualified.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

  3. mirtes
    Posted May 8, 2019 at 1:12 pm | Permalink

    Hello, I started the process with NACA in December, but in January the program no longer accepted who only has the ITIN Number.
    Do you have a date to go back to who has an ITIN?
    Thanks

    • Posted May 10, 2019 at 1:45 pm | Permalink

      Hello mirtes,

      At this point in time, we are not able to originate loans for people with ITIN numbers. Our ITIN lending partner, Citi, has been gradually leaving the mortgage servicing industry. Late in 2018, Citi ended its partnership with NACA and no longer provided loans for our members. We are in negotiations with potential ITIN lending partners, but no agreement has been reached yet. As soon as we have a new partner, we will make an announcement and will eagerly begin to originate ITIN loans again.

      Tim Trumble
      Online Operations, NACA
      ttrumble@naca.com

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