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Servicing and Support
From application to closing, customer service and support is a way of life for us here at NOVA Home Loans. The topics below cover most of the commonly asked questions regarding servicing of a mortgage loan. If you don’t see the information you’re looking for, send us an email at loanservicing@NOVAhomeloans.com, or call 1-877-417-6682.
What to expect after my loan closes?
Once your loan closing is complete, it will be sold into the secondary market and will begin the process for permanent loan servicing. The servicing of your loan consists of collecting/applying your payments, paying escrow items coming due, providing year end tax information, and customer service to you should you have any questions.
It is very common that the servicing of your loan may transfer to another servicer. This is nothing to be concerned over as the terms of your mortgage loan cannot change. Please refer to the following FAQ’s regarding loan servicing.
If NOVA Home Loans retains the servicing of your loan, we’ve partnered with ServiceMac LLC to act as our Private Label sub servicer. ServiceMac will perform the day-to-day activities of your loan on behalf of NOVA Home Loans, which includes collecting your payments. For loans with an escrow account, they will pay your taxes, homeowner’s insurance, and conduct other loan-related activities, along with providing customer service to you.
Shortly after your loan is funded and servicing is set up, NOVA will reach out to you with a welcome call. On this call, we will confirm your contact information (mailing address, email address, and phone numbers), provide information on your first payment due, and provide details regarding your new mortgage. Additionally, NOVA will send you a welcome email explaining the terms of your loan’s transition to our servicing department. This notification includes your new servicing loan number, payment locations, contact information, and links how to access your account online. Should you have any questions, please call NOVA’s customer service team at 1-855-415-5614 or email firstname.lastname@example.org.
An escrow account is the portion of your monthly mortgage payment, in addition to principal and interest, set aside to pay taxes, homeowners insurance, mortgage insurance, flood insurance, or other escrow items as they come due. The monthly escrow amount equals 1/12 of the total of your taxes, homeowners insurance, and mortgage insurance if applicable. Escrow amounts may change from year to year based on your tax and insurance rates.
Some states allow mortgage servicers to maintain a cushion—or additional funds—to help offset a large shortage on the escrow balance should tax and/or insurance premiums increase significantly. Cushion amounts may be no more than 1/6 of the total escrow charges for the year, which means no more than two months’ worth of monthly escrow collection may be maintained in the escrow account above and beyond amounts required to pay the bills. Your servicer is responsible for the timely and accurate payment of all escrow items.
For NOVA Home Loans to process your insurance renewal request, it is
important that your insurance company has the NOVA Home Loans mortgagee
clause listed below. NOVA Home Loans does provide each insurance company
with these notifications, but it is helpful if you ask your insurance
carrier to change the mortgagee clause to:
NOVA Home Loans
Its Successors and/or Assigns (ISAOA)
As Their Interests May Appear (ATIMA)
PO Box 29411
Phoenix, AZ 85038-9411
When your loan transfers to our servicing department, it may take a few weeks for all documents and information to be updated. Please reach out to us if you receive a notice that your insurance lapsed and your loan is escrowed. Our email address is servicing@NOVAhomeloans.com.
To verify if the funds need to be placed back into your escrow, or are yours to keep, please email servicing@NOVAhomeloans.com.
A copy of the new homeowner’s insurance declaration page needs to be sent to the servicer of your loan. You can also reach out to NOVA at loanservicing@NOVAhomeloans.com. We will gladly update this information for you.
Private Mortgage Insurance (PMI)
Private Mortgage Insurance (PMI) is required on conventional mortgage loans that funded with a Loan to Value (LTV) ratio of 80% and greater. If the down payment at the time of the origination is less than 20% of the original mortgage loan amount, PMI must be included in the escrow portion of the monthly payment.
- PMI will be automatically dropped when the LTV reaches 78% based on the original term and amortization of the mortgage loan.
- Based on your loan type and other Investor requirements, you may be eligible to request PMI be removed prior to its automatic termination date.
- You can request PMI be removed when your loan-to-value ratio (LTV) reaches 80%. A written request must be submitted to us for the loan to be reviewed, and the conditions must meet all applicable requirements for approval.
A mortgage payment recast is after a significant principal only payment is applied, the monthly payments on your current loan are recalculated based on the remaining balance, remaining term of your mortgage, and new lower outstanding principal balance. It’s often associated with the sale of another home or investment property, then applying the proceeds from that sale to the principal of your current mortgage.
It does not shorten the term or the interest rate, but it can dramatically reduce the principal balance on your mortgage, decrease interest payments over the life of the loan, reduce your monthly payments, and help you pay off your loan sooner. It’s also a great way to successfully navigate buying a new home before the sale of an existing home takes place.
- Only conventional loans are eligible to for a payment recast. FHA, USDA and VA loan types are not eligible.
- Depending on the resulting loan-to-value (LTV) after a principal payment and recast, any private mortgage insurance can be reviewed for possible cancelation.
If NOVA Home Loans is servicing your mortgage loan and you have questions regarding a recast, inquire on the cost, or would like to initiate this process, please contact our Customer Service Group at 1-855-415-5614 or email support@myNOVAservicing.com
Year-End Tax Forms
A 1098 Mortgage Interest statement is required if an amount of $600.00 or more is paid towards mortgage interest. For loans that meet this requirement, NOVA Home Loans is required to generate and mail statements to borrowers no later than January 31st each year.
Because some loans transfer to a new servicer as of the first payment due, NOVA will not generate a 1098 Mortgage Interest statement on every loan we originate. Please be advised a separate 1098 Mortgage Interest statement will be mailed, if applicable, by each mortgage servicer who serviced your loan during the previous calendar year. For more information, please email us at servicing@NOVAhomeloans.com, or call 1-877-417-6682.
NOVA Home Loans has many programs designed to help borrowers get through financial hardships. We will do everything we can to determine your eligibly and find a solution that works best for you. The sooner you let us know about your need for assistance, the sooner and more likely help will be available for you. For consideration of options that may help you through a difficult time, please call 1-855-504-7050 or email email@example.com
If there are no options that make it financially possible to keep your home, a short sale could give you a fresh start and help you avoid the foreclosure process. It allows you to sell your home for less than you owe on the mortgage, pending investor approval. Some investors will not permit a short sale if you have not been evaluated for all home retention solutions.
Certain documentation may be required to complete the short sale review. The process could be delayed if the requested documents are not received in a timely manner. A short sale may have tax consequences and/or likely negatively impact your credit, but not as bad as foreclosure. You should contact your tax advisor to discuss these potential tax impacts.
Under a federal law called the Servicemembers Civil Relief Act (SCRA), military members may be entitled to a range of benefits unrelated to Veterans Affairs (VA) benefits. If the loan was originated prior to military service, military members may be entitled to the following benefits during, and 12 months after, active service:
- Foreclosure protection
- Lowered interest rate to 6% maximum, if the interest rate on the loan is more than 6%
- No new late fees
- No new legal fees
Eligible service members include:
- A regular member of the U.S. Armed Forces (Army, Navy, Air Force, Marine Corps, or Coast Guard).
- Reserve or National Guard personnel who have been activated and are on federal active duty. National Guard members and members of state military units who are called to state active duty are not covered by SCRA. However, many states have enacted laws that extend SCRA protections to such service members who are called to state active duty.
- National Guard personnel under a call or order to active duty for more than 30 consecutive days under section 502(f) of title 32, United States Code, for purposes of responding to a national emergency declared by the President and supported by federal funds.
- An active service member of the commissioned corps of the Public Health Service or the National Oceanic and Atmospheric Administration.
- A U.S. citizen serving with the armed forces of a nation with which the United States is allied in the prosecution of a war or military action.
If your home has been damaged by a natural disaster:
- Call Customer Service at 1-855-415-5614. Representatives are available Monday–Friday, 8:30am–5:00pm CST.
- Or email support at support@myNOVAservicing.com.
It’s also important to contact your homeowners insurance company,
and/or your secondary insurance company (in the case of having flood,
earthquake insurance, etc.), as soon as you can. NOVA Home Loans will be
able to assist you with your homeowner’s insurance company contact
information, and policy information, and provide assistance if you’ll
have difficulty making your mortgage payment. If the servicing of your
mortgage loan has been transferred, we can provide the contact information
to reach your current mortgage servicer. Below are additional resources
available to you.
To apply for FEMA disaster assistance:
- Visit www.disasterassistance.gov
- Or call 1-800-621-FEMA
To apply for Red Cross disaster assistance:
- Visit www.redcross.org
Preparing for a Natural Disaster:
If you are expecting or preparing for a natural disaster, the U.S. Federal Emergency Management Agency (FEMA) is a valuable resource for information on emergency preparedness. For information visit: www.ready.gov. You can also contact FEMA hotline:
We’re Here to Help.
If COVID-19 has negatively impacted your ability to pay your mortgage due to loss of employment, reduction in income, illness, or other COVID-related conditions, NOVA Home Loans offers options below to assist you during the pandemic.
For loans being serviced by NOVA Home Loans, please contact us by calling toll-free 1-855-504-7050, Monday – Friday, 8:30am to 8:00pm EST, Saturday 9:00am to 3:00 pm EST.
Also known as a forbearance plan, this offers you the ability to temporarily suspend or reduce your monthly payments for three months (or more if needed). Depending on the length of your COVID-19 hardship, your forbearance plan may be extended for up to a total of 12 months.
NOVA Home Loans is committed to assisting our customers in both the short term and the long term. As your hardship ends, there are longer term solutions available to resolve the overdue amount (forbearance amount). Based on individual circumstances, customers will be re-evaluated for available options. NOVA Home Loans will contact you about 30 days before your forbearance ends. If they are unable to reach you, please reach out to them.
Pay all forbearance (overdue) amounts over time by adding an agreed-upon extra amount to your normal monthly mortgage payments.
Deferral or Partial Claim
- Conventional loans owned by Fannie Mae or Freddie Mac may be eligible for a payment deferral which adds the forbearance (overdue) amount to the end of the loan. The deferral is a non-interest bearing balance which is due at loan payoff or refinance.
- FHA guaranteed loans may be eligible for a partial claim of the
forbearance (overdue) amount. This is a separate noninterest-bearing HUD
promissory note of the forbearance amount which is due to HUD at loan
payoff or refinance.
If the above options are not workable for your situation, you may be eligible to add your forbearance (overdue) amount to your loan balance and modify your loan terms to make your monthly payments more affordable.
Credit Reporting and Late Fees
We understand the importance of credit scores. NOVA Home Loans will not report negative data to credit bureaus or assess late fees for customers actively performing on forbearance plans (reduced or suspended payment agreements), or long-term assistance options.