Settlement and Closure Service – Mortgage Redemption Packet Preparation
Settlement and Closure Service – Mortgage Redemption Packet Preparation
Cost: $599
This service assists clients in compiling a complete redemption packet for submission to the U.S. Treasury. It provides structured guidance in preparing FS (Fiscal Service) Forms and supporting documentation required for mortgage redemption.
Important: Before booking this service, clients must complete one of the following:
- Send a RESPA Request for Information (RFI) letter to their mortgage servicer to inquire whether their mortgage has been securitized into a government-sponsored trust. OR
-
Obtain a securitization audit to determine the CUSIP number and the name of the trust holding their mortgage. Download Free RESPA Template Here.
Why Is This Required?
The CUSIP number and trust name are essential for completing FS (Fiscal Service) Forms —these forms are required for requesting mortgage redemption from the U.S. Treasury. Without this information, the forms cannot be properly completed or processed. If a client books the service without this information, they will be refunded and advised to return once they have obtained either a RESPA response or a securitization audit. This ensures that the redemption process is feasible and that all necessary details are available before moving forward.
Checklist for Settlement and Closure Service
To ensure smooth completion of your mortgage redemption process, please provide the following documents:
Required Information:
✅ CUSIP Number – Identifies your securitized mortgage.
✅ Government-Sponsored Trust Name – The entity holding your mortgage.
✅ Group Number (if applicable) – Any subgroup assigned to the trust.
Required Documents:
📄 Social Security Card – A clear copy.
📄 Deed of Trust – A complete copy of your mortgage document.
📄 Driver’s License, State ID Card, or Passport – A valid government-issued ID.
📄 Certified Copy of Marriage License – Only required if your name differs from what is listed on your mortgage, ID, or Social Security card. Must be an original certified copy, not a photocopy.
📄 Bank Verification – If requesting proceeds to be sent to a personal bank account, provide one of the following as verification:
- Voided Check – A blank check with “VOID” written across it.
- Bank Statement – A recent statement showing your name, account number, and routing number.
- Direct Deposit Form – An official form from your bank confirming your account details.
- Bank-Provided Verification Letter – A letter from your bank confirming account ownership.
- Online Banking Screenshot – A screenshot displaying your name, account number, and routing number.
- Account Verification Form – Some banks provide official account verification documents instead of checks.
Process Overview:
How It Works:
📌 Step 1: Client provides required information (CUSIP number, trust name, group number) and supporting documents.
📌 Step 2: We complete all FS forms and return them to the client for signing in front of a securities broker or bank representative.
📌 Step 3: Client obtains a Medallion Signature Guarantee from a financial institution and returns the signed forms to us.
📌 Step 4: We organize the full packet and ship it via USPS next-day service.
📌 Step 5: Client receives a confirmation email with tracking details.
📌 Step 6: Once TreasuryDirect takes possession of the packet, our service is complete, and the client can monitor their redemption request independently.
Additional Considerations:
📌 Required Additional Documents: We will include additional documentation that must accompany your packet, even if not explicitly listed here. Rest assured, all necessary paperwork will be provided.
📌 Processing Timeline: TreasuryDirect processing can take anywhere from 2 weeks to 6 months or longer before funds are released.
📌 No Follow-Up Support: Once the packet has been submitted to Treasury, our service is complete. Clients will receive instructions on how to communicate with TreasuryDirect directly regarding status updates.
Do-It-Yourself Mortgage Redemption Manual
If you prefer to handle your mortgage redemption process independently due to privacy concerns or personal preference, consider purchasing a physical copy of our comprehensive Mortgage Redemption Manual.
What’s Inside:
- Step-by-step instructions on confirming mortgage securitization.
- How to obtain your CUSIP number and trust details.
- FS Forms guidance.
- Document preparation and submission process.
- Instructions for obtaining a Medallion Signature Guarantee.
- Templates for communication with TreasuryDirect and mortgage servicers.
This manual serves as an alternative option for individuals who prefer a hands-on approach to mortgage redemption without third-party assistance.
📌 Get your copy today: [ Link Wil be Added Once Available]
Frequently Asked Questions (FAQ) – Settlement and Closure Service
1. What is the Settlement and Closure Service?
The Settlement and Closure Service helps clients prepare their mortgage redemption packet for submission to the U.S. Treasury. This includes completing required FS Forms, organizing supporting documentation, and handling USPS next-day shipping.
2. What information do I need before booking this service?
Before booking, clients must confirm mortgage securitization by obtaining:
- A RESPA Request for Information (RFI) response from their mortgage servicer OR
- A securitization audit that provides their CUSIP number, the name of the trust holding their mortgage, and the group number (if applicable).
If booked without this information, clients will be refunded and asked to return once the required details are obtained.
3. What documents are needed for the redemption packet?
Clients must provide:
✅ CUSIP Number – Identifies securitized mortgage.
✅ Government-Sponsored Trust Name – The entity holding the mortgage.
✅ Group Number (if applicable) – Any subgroup assigned to the trust.
✅ Social Security Card – A clear copy.
✅ Deed of Trust – A complete copy of the mortgage document.
✅ Driver’s License, State ID Card, or Passport – A valid government-issued ID.
✅ Certified Copy of Marriage License – Required only if your name differs from what is listed on your mortgage, ID, or Social Security card (original certified copy, not a photocopy).
✅ Bank Verification – If requesting funds to be sent to a personal bank account, provide one of the following:
- Voided check
- Recent bank statement
- Direct deposit form from your bank
- Official bank verification letter
- Online banking screenshot showing account details
4. What is a Medallion Signature Guarantee, and where can I get one?
A Medallion Signature Guarantee is a financial certification required for processing FS Forms. Clients can obtain one from:
- Banks (e.g., Chase, Wells Fargo, Bank of America)
- Credit Unions (varies by institution)
- Brokerage Firms (e.g., Fidelity, Morgan Stanley, Edward Jones)
- Online Services (e.g., eSignature Guarantee)
Clients should call ahead to confirm availability and bring required documents to verify the value of their securities—including their Deed of Trust and Promissory Note.
5. What happens after my redemption packet is completed?
Once all forms are signed and Medallion stamped:
✔ We will organize the full packet and ship it via USPS next-day service.
✔ Clients receive an email confirmation with tracking details.
✔ TreasuryDirect will process the packet, concluding our service.
✔ Processing may take 2 weeks to 6 months or longer, depending on Treasury timelines.
6. Do you provide follow-ups after my packet is sent?
No, once your packet has been submitted to TreasuryDirect, our service is concluded.
However, we provide a transcript to help clients effectively communicate with TreasuryDirect regarding their redemption request.
7. Can I get a refund if I change my mind?
Refunds are only available before we begin processing your redemption packet. Once service has started, no refunds will be issued.
8. What if I want to handle redemption myself?
For clients who prefer a do-it-yourself approach, a physical copy of our Mortgage Redemption Manual is available. The manual provides:
📖 Step-by-step guidance for confirming securitization
📖 FS Forms completion instructions
📖 Templates for communicating with TreasuryDirect
📖 Instructions on obtaining a Medallion Signature Guarantee
📌 Purchase your manual here: [Link Will be Provided Once Available]
9. Will this process work if I am in foreclosure?
If you are currently in foreclosure, it is best to communicate with your mortgage servicer to request forbearance until the redemption process is complete.
If foreclosure has already occurred, redemption may still be possible, but clients must:
✅ Identify the name of the GSE (Government-Sponsored Enterprise) holding the mortgage.
✅ Determine if the mortgage is still active in the GSE’s trust.
✅ Submit a FOIA (Freedom of Information Act) request to the relevant government entity to verify whether the loan remains active in the trust.
⚠ Important: If the loan is no longer active, we cannot confidently guarantee that redemption will work.
10. Is mortgage redemption only for those in foreclosure?
No, redemption is available to anyone with a mortgage securitized into a GSE (Government-Sponsored Enterprise). If your mortgage is not securitized into a GSE, please do not pay for this service.
11. What if my mortgage is paid off? Can I still do the redemption process?
That depends on whether your loan is still active in the GSE. If the loan is not active, redemption may not be possible.
12. What if I sold my home? Is redemption possible?
It depends on whether your loan is still active in the GSE after selling the home. This must be verified before purchasing the service.
13. Can you guarantee redemption?
We cannot guarantee redemption 100%, but we provide confidence that the process follows TreasuryDirect’s instructions and complies with 31 CFR § 357.20. Each individual's mortgage and circumstances are not the same.
Explanation of 31 CFR § 357.20:
Imagine you have a piggy bank where you keep your money. But instead of coins, you have special tickets that prove you own money in a big government bank. 31 CFR § 357.20 is like the rulebook that explains how the government keeps track of those tickets.
- It says that when you have assets in a Government Sponsored Trust, the government keeps a record of what you own.
- If you want to use or transfer your money, you need to follow certain steps.
So, this rule helps make sure that people’s money in Treasury accounts is safe, organized, and properly recorded!
Potential Challenges in the Redemption Process
While following all steps correctly and confirming the mortgage is still active in a GSE significantly increases the likelihood of success, clients should be aware of potential challenges that may arise during processing. Here are some key obstacles that could impact the outcome:
1. Delays in TreasuryDirect Processing
- TreasuryDirect’s processing timeline can vary between 2 weeks to 6 months or longer.
- If additional verification is needed, processing time may be extended.
2. Request for Additional Documentation
- Treasury may request more supporting documents, such as updated identification, additional bank account verification, or clarification on ownership.
- If forms are not correctly completed, Treasury may return the packet for corrections, delaying the process.
3. Errors or Missing Information
- Incomplete or inaccurate FS forms could lead to rejection or processing delays.
- Any discrepancies between the borrower’s name on the mortgage and identification may require additional verification (e.g., a certified marriage license).
4. Issues with the Medallion Signature Guarantee
- Some banks or brokerage firms may refuse to issue a Medallion Signature Guarantee due to concerns over transaction value.
- If a Medallion stamp is obtained from an institution unfamiliar with TreasuryDirect processes, further verification may be required.
5. Verification of Loan’s Active Status in the GSE
- If the loan is no longer active in the GSE, redemption may not be possible.
- In cases where the loan is active but has undergone modifications or transfers, additional FOIA requests may be needed to confirm its current status.
6. Unresponsive Mortgage Servicers or GSEs
- Some mortgage servicers may be slow or unwilling to provide securitization details upon request.
- Clients may need to escalate the matter or obtain a securitization audit independently.
While these factors can introduce complexities, a well-prepared packet with all required documents significantly improves the chances of a successful redemption process.