RC_LA_CM_200.1 Cash Flow

The homeowner’s monthly mortgage payment is generally broken down into several different components, and many different parties may make claim to their portion of the payment. There are a myriad of combinations of elements contained within a given payment, and the flow of cash may be as simple as a direct payment to reduce the principal balance or it may be as complex as a payment that is divided and distributed to different investors, government agencies, insurance entities, escrow payees, and so on.

In Cash Flow, we will look at the movement of cash from the borrower to the servicer and investors to see where the money goes and how it gets there. We begin with a look at the various elements of a mortgage payment. Next we will look at what happens to the cash once it comes into the cash flow system and the different methods of submitting a payment to the mortgage servicer, such as ACH drafting, wire funds transfers, or lockbox payments. Finally, we will look at two different types of accounts in which payment funds are held: custodial and corporate funds.

This is a single-family/residential course.

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