Author Topic: Mortgage Coupon Book - WTF?  (Read 3672 times)

Masstache

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Mortgage Coupon Book - WTF?
« on: January 10, 2018, 02:56:28 PM »

I have had my mortgages (primary residence and rental properties) with a local bank forever.   I have had autopay set up, with e-delivery of all documents.   No paper, no worries.   Apparently the local bank sold all their investment property mortgages recently to some outfit called "Fidelity Bank" in Wichita KS (unrelated to the other Fidelity).    Next thing I know, Fidelity Bank mailed me Mortgage Coupon Books with instructions of how to mail a check to make my monthly mortgage payment.   What is this, 1980?  I haven't written an actual check in years.    I have been paying mortgages for over 20 years, and I have had mortgages sold and resold dozens of times, but this is the first Mortgage Coupon Book I have ever seen.   The accompanying letter said something like "We are in the process of figuring out this new-fangled Internet thing and hope to provide you access to your account via your computer thingie as soon as we harvest all the wheat."   Nothing against Kansas, but it worries me to have my mortgage held by such a dinosaur.   Is there risk in having a mortgage held by a rinky-dink local bank halfway across the country?   Should I refinance and bring the loan back to a local bank? 

SwordGuy

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Re: Mortgage Coupon Book - WTF?
« Reply #1 on: January 10, 2018, 04:41:48 PM »

I have had my mortgages (primary residence and rental properties) with a local bank forever.   I have had autopay set up, with e-delivery of all documents.   No paper, no worries.   Apparently the local bank sold all their investment property mortgages recently to some outfit called "Fidelity Bank" in Wichita KS (unrelated to the other Fidelity).    Next thing I know, Fidelity Bank mailed me Mortgage Coupon Books with instructions of how to mail a check to make my monthly mortgage payment.   What is this, 1980?  I haven't written an actual check in years.    I have been paying mortgages for over 20 years, and I have had mortgages sold and resold dozens of times, but this is the first Mortgage Coupon Book I have ever seen.   The accompanying letter said something like "We are in the process of figuring out this new-fangled Internet thing and hope to provide you access to your account via your computer thingie as soon as we harvest all the wheat."   Nothing against Kansas, but it worries me to have my mortgage held by such a dinosaur.   Is there risk in having a mortgage held by a rinky-dink local bank halfway across the country?   Should I refinance and bring the loan back to a local bank?

Three points:

1) The bank is probably safer because it's far less likely to get hacked if it's not on the internet.  :)

2) You'll pay money to refinance - and possibly a higher interest rate, too.   And they can just sell it again...

3) My parents banked with a small Arkansas bank while the army moved them around the world.   Those folks actually looked at the signatures on the checks and refused one.  My dad had had to write it while standing in a really awkward position while he was out someplace remote and it affected his signature.

So, other than being mildly less convenient, it's no big deal.

GoConfidently

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Re: Mortgage Coupon Book - WTF?
« Reply #2 on: January 10, 2018, 05:22:31 PM »
I got a mortgage coupon book once. I think I used it once before my account was set up online. They’re not trying to figure out the internet, they’re just transferring massive amounts of data. It takes a minute.

MNBen

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Re: Mortgage Coupon Book - WTF?
« Reply #3 on: January 11, 2018, 11:25:38 AM »
Some banks will also mail a check for you, so it's still basically AutoPay, just not direct deposit.  You could maybe open an account at one of those banks if that helps.

Holyoak

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Re: Mortgage Coupon Book - WTF?
« Reply #4 on: January 11, 2018, 04:14:28 PM »
Some banks will also mail a check for you, so it's still basically AutoPay, just not direct deposit.  You could maybe open an account at one of those banks if that helps.

That's a good idea, and how I currently pay rent to my LL in HI. 

Have done this in another rental, and it worked out well.  Easy peasy to set up online, monitor online, and you even get a confirmation number once payment is mailed.  Only drawback is you have to allow for plenty of transit time, to ensure delivery before the due date, esp with holidays.  My payment goes out automatically on the 21st from PA, and seems to make it there just fine to HI before the 1st, via first class mail.           

Masstache

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Re: Mortgage Coupon Book - WTF?
« Reply #5 on: January 12, 2018, 09:49:58 AM »
Some banks will also mail a check for you, so it's still basically AutoPay, just not direct deposit.  You could maybe open an account at one of those banks if that helps.

That's a good idea, and how I currently pay rent to my LL in HI. 

Have done this in another rental, and it worked out well.  Easy peasy to set up online, monitor online, and you even get a confirmation number once payment is mailed.  Only drawback is you have to allow for plenty of transit time, to ensure delivery before the due date, esp with holidays.  My payment goes out automatically on the 21st from PA, and seems to make it there just fine to HI before the 1st, via first class mail.         

I appreciate the suggestion, but dammit this is 2018 and your landlord should get with the times.   10 days of transit is quaint and honestly silly.   When my tenant pays me rent via Venmo, it takes less than 1 second for it to get from his account to mine. 

Holyoak

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Re: Mortgage Coupon Book - WTF?
« Reply #6 on: January 12, 2018, 11:34:46 AM »
Some banks will also mail a check for you, so it's still basically AutoPay, just not direct deposit.  You could maybe open an account at one of those banks if that helps.

That's a good idea, and how I currently pay rent to my LL in HI. 

Have done this in another rental, and it worked out well.  Easy peasy to set up online, monitor online, and you even get a confirmation number once payment is mailed.  Only drawback is you have to allow for plenty of transit time, to ensure delivery before the due date, esp with holidays.  My payment goes out automatically on the 21st from PA, and seems to make it there just fine to HI before the 1st, via first class mail.         

I appreciate the suggestion, but dammit this is 2018 and your landlord should get with the times.   10 days of transit is quaint and honestly silly.   When my tenant pays me rent via Venmo, it takes less than 1 second for it to get from his account to mine.

I agree that it is much better to simply do an online transfer, which I have done automatically with other rentals I have resided.  My LL is only 28, is definitely tech savvy, and I am going to see if she would rather go to online payment only.  I have only been here for a few months, and initially her local parents received the payment, and wanted/understood/were only comfortable with paper checks.

If she will provide account numbers, I'll simply do a debit from my checking account, Pop-Money, similar.  I do like the immediacy from the standpoint of no lost in the mail, better/easier accounting, no trips to the bank for her, and to be frank I prefer having less moving parts/PITA if something goes wrong.

Sean Og

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Re: Mortgage Coupon Book - WTF?
« Reply #7 on: January 13, 2018, 09:25:31 PM »
This made me laugh....I just got a new coupon book the other day from none other than Fidelity Bank!

They are a good solid bank for mortgage lending in KS/OK and I particularly liked the fact that they don't sell off their mortgages. They do have an online presence, if you don't have an online account yet you will/should be able to set one up, I have no other accounts with them.

https://mtgserv.fidelitybank.com/focs/showLogin.do

I have a autopay setup with them from CapOne so the coupon book is mostly worthless but i generally hold onto it just in case something goes screwy with the autopay and dispose of the old when i get the next book.

dragoncar

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Re: Mortgage Coupon Book - WTF?
« Reply #8 on: January 13, 2018, 09:30:02 PM »
Ask them to send you a copy of the promissory note.

JK don't do that but it would serve them right.

That said, some banks are known to keep "portfolio" mortgages, so you could theoretically refinance with them -- they won't guarantee it but you'd stand a better chance.  I have a chase mortgage and a month after it originated, they sold it to ... Chase mortgage holdings inc. (or simlar)
« Last Edit: January 13, 2018, 09:32:18 PM by dragoncar »

Masstache

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Re: Mortgage Coupon Book - WTF?
« Reply #9 on: January 15, 2018, 04:19:46 PM »
This made me laugh....I just got a new coupon book the other day from none other than Fidelity Bank!

They are a good solid bank for mortgage lending in KS/OK and I particularly liked the fact that they don't sell off their mortgages. They do have an online presence, if you don't have an online account yet you will/should be able to set one up, I have no other accounts with them.

https://mtgserv.fidelitybank.com/focs/showLogin.do

I have a autopay setup with them from CapOne so the coupon book is mostly worthless but i generally hold onto it just in case something goes screwy with the autopay and dispose of the old when i get the next book.

Ah good to know that this bank is legit, thank you!  I almost miss the good old days when mortgages were required to be held by a local bank.    I just checked and I do in fact now have the option to set up online access to my account and to establish autopay.   I set it all up and hopefully can now just ignore the coupon book.