To serve you better, Abacus Federal Savings Bank has now added telephone banking (Toll Free 1-888-818-6613). With this service, you’ll be able to access your loan accounts 24 hours a day at your own home or anywhere. You will be able to check your account balance and find out your recent payment transactions in your account. All of these can be accomplished at your convenience using English or Chinese.

To access your account:

Dial 1-888-818-6613

Enter loan account number

Enter PIN number

Enter zip code of your premises

• 1 Inquire Balance
• 2 Interest Information
• 3 Payment Information

Should you need assistance to reset your PIN number, please call us at 212-285-4770 (ext.2100 or 2106) during business hours.

All inquiries regarding your loan should be directed to Abacus’ Loan Servicing Department. The address, fax number, and telephone number is as follows:

Abacus Federal Savings Bank

Loan Servicing Department

6-8 Bowery FL3

New York, NY 10013

Fax No. (212) 571-6380

Tel. No. (212) 285-4770 Ext. 2100

Monthly Payment Mailing Address:

Abacus Federal Savings Bank

P.O. Box 1768

Newark, NJ 07101-9998

Main Number: 212-285-4770

Loan payments can be made by mail or through the Bank’s branches in the form of cash, check, money order, or cashier’s check. More efficiently, loan payments can be made conveniently by using the Bank’s Automatic Debit Program (see item B, below).

A. Importance of Timely Payment

Making your loan payment on time is one of the best ways to build a strong credit record. The Bank is under obligation to report the payment history of its borrowers to credit bureaus. Each time a payment is received late, it is automatically reported. A few late payments will quickly cause your credit rating to drop. Late payments will also generate penalty and interest charges.

If you maintain a good credit record, you will be able to easily obtain refinancing in the future, or new financing to purchase a new home or for business at a favorable rate. Making your loan payment on time is, therefore, very important to you.

Based upon your mortgage agreement, your monthly installment payment is to be paid on the first day of each month unless your loan is a bi-weekly loan. You are given a grace period of 10 or 15 days depending upon your loan agreement. It is a good idea to plan your mortgage payment ahead. To allow a late payment to occur is simply too costly.

B. Automatic Debit Program

To assist its borrowers to pay mortgage installments on time, the Bank has established an Automatic Debit Program. With your authorization, the Bank will automatically charge your depository account at Abacus or another bank on the dates chosen by you: 1st day, 7th day, or the last day of the grace period for your loan of each month (unless it is a bi-weekly mortgage). Under this Program, you are relieved of the burden of remembering the mortgage payment due date and ensuring that the payment is received by our Bank. However, you must maintain sufficient funds in your depository account. This is truly the simplest way to make sure that your mortgage payment is made on time.

If your depository account is with another bank, it must be a type of checking account. If the account has insufficient funds to meet the mortgage payment on the due date, you will be charged a fee by the depository bank. You will also be charged a fee by Abacus against your loan account. To avoid repeated charges by your depository bank, Abacus will not attempt to debit your depository account again for the same month’s mortgage payment. You must then mail in the payment for that month before the grace period expires to avoid the late payment penalty.

If your designated depository account is with Abacus, it may be a checking or savings account. If the account has insufficient funds, the Loan Servicing Department will continue to debit your account to obtain payment until the grace period expires. The Bank will charge your depository account only once for the month you had insufficient funds.

If you would like to join the Automatic Debit Program or open a depository account, the Bank will be happy to assist you. A form to authorize the debit to your depository account is attached in the following links.

• ACH Form English
• ACH Form Chinese

As stated earlier, your depository account at Abacus may be a savings account which has no maintenance fee. Your deposits will earn interest until the day the necessary amount is withdrawn for the mortgage payment. Cumulatively, you can save a lot of interest during the term of the mortgage. This is another good reason for utilizing the Automatic Debit Program and opening a savings account at Abacus.

If there is a need to make a payment not as shown on the payment coupon, i.e. additional principal, payment of late charges and late payments, escrow deficiency, etc. please send your payment directly to the Loan Servicing Department at the address shown below:

Abacus Federal Savings Bank

Loan Servicing Department

6-8 Bowery FL3

New York, NY 10013

Please also indicate clearly the purpose of the payment.

Based upon your mortgage agreement, each month the Bank will collect from you approximately one-twelfth of the annual real estate tax assessed against your property. This amount is included in the monthly mortgage payment. It is held in an escrow account. When the tax becomes due, the Bank takes the necessary amount from the escrow account and pays the city/town on your behalf. Any surplus or deficit in the account is either returned or charged to you. At the end of the tax period, the tax escrow is recalculated based upon the new assessment for real estate tax for the coming year. For New York City properties, tax re-assessment occurs in August. For properties outside of New York City, tax reassessment occurs in November. You will be notified by the Bank regarding the new escrow amount and the total monthly mortgage payment.

Because the Bank is paying the real estate tax on your behalf, all bills and notices regarding real estate tax on your property should be sent to the Loan Servicing Department by the city/town. Occasionally, mistakes do occur. If you receive the real estate tax bill or, particularly, a delinquent notice for non-payment of real estate tax, you must notify the Loan Servicing Department immediately to avoid accumulation of interest.

Water and sewer fees charged against a property owner are based upon usage. In New York City, the service is provided by the government. The usage fee is collected as a tax. In other cities/towns, the service may be provided by private companies and the charges are collected differently. The Bank usually does not escrow for water and sewer charges. You, as the owner of the property, must pay the bill directly to the city/town or the private company.

In New York City, some older buildings still do not have water meters. The City assesses these buildings a flat annual fee which is called a frontage tax. If you are owner of one of these buildings, the Bank will escrow one-twelfth of the annual water and sewer frontage charge each month with the mortgage payment and remit to the City on your behalf when the payment is due. If you later install a water meter, please notify the Bank to reduce your escrow payment.

Property insurance protects you and the Bank from destruction of your property resulting from fire, lightning, storm, flood, etc. Your mortgage agreement requires you to purchase adequate property insurance and to keep it current throughout the term of the mortgage. As soon as you close the loan, please give your Loan Number to your insurance agent and ask the agent to send a copy of the insurance policy to the Bank. If the Bank does not receive a copy of the policy or, later, the renewal, the Bank will be forced to purchase the insurance and charge you for it. This may result in duplicate or higher costs to you.

The minimum amount of property insurance that you must have for your property is the unpaid principal balance amount of your mortgage or the insurable value of the improvements if it is lower. The amount must also meet the co-insurance requirements of the insurance policy. The Bank may require that you carry a higher amount for your own protection. The proper amount of property insurance to have depends upon the replacement value of your property and co-insurance requirement of the insurance policy, etc. Discuss this carefully with your insurance agent.

As general information, you, the property owner, should also carry property liability insurance to protect you from lawsuits arising from ownership of the property. You may be sued if someone is injured on your property, causing you unexpected losses. It is always a good idea for you to maintain adequate insurance coverage on properties that you own.

Mortgage insurance is required if your loan is over 80% of the value of your property. The Bank always escrows for mortgage insurance monthly. The necessary escrow amount is calculated by the Bank and is included in your monthly loan payment. This is one-twelfth of the annual premium on the required amount of mortgage insurance. The required amount of the mortgage insurance varies depending upon the percentage amount of the loan to the value of your property. When the percentage of the loan to the value of your property decreases below 80%, the mortgage insurance may be cancelled if your property is your home, your mortgage payment is current and the payment history is satisfactory. When your loan percentage is below 80%, you should review the Private Mortgage Disclosure given to you at your closing to determine when the mortgage insurance may be terminated and then advise the Loan Servicing Department.

A. Proper Planning

You may wish to pay off the loan before the mortgage term ends. The need may arise because your property is being sold. The Bank will assist you in providing the necessary documents to conclude your transaction as smoothly as possible. We hope that you will seek financing again with Abacus when you purchase another property.

If you wish to pay off the loan to refinance for a lower interest rate or to obtain additional cash, please do check with the Loan Origination Department of Abacus. You can surely select one of the many loan programs offered by the Bank to suit your needs. By applying for a new loan with Abacus, the Bank’s internal departments can work together to save you expenses such as appraisal fee, legal fee and mortgage tax, etc.

When considering pay-off of your loan, you need to review the mortgage and the note. Some loans carry a prepayment penalty which may be a deciding factor for you.

B. Pay-Off Procedures

Once you decide to pay off your loan, you or your attorney need to inform the Bank in writing and request for a pay-off letter. The pay-off letter is a letter issued by the Bank which lists the loan principal balance due, the interest rate, per diem interest amount, escrow balance, real estate tax payment, late payment penalty, etc. With the letter, you will know the exact payoff amount required. You will need the letter for your attorney whether you are selling your property or refinancing the loan.

You or your attorney also need to advise the Bank of the type of loan satisfaction document needed. For properties located in New York City, an assignment of the existing mortgage is sometimes desired to save a part or all of the mortgage tax if a new loan or refinancing is involved. For properties outside of the New York City or when there is no new financing involved, a release or a satisfaction of mortgage (straight pay-off) is all that is required. The Bank’s attorney needs to know your requirements to prepare the correct document.

The pay-off amount to the Bank must be in the form of certified or cashier’s checks payable to the Bank directly without third party endorsement or by wire transfer to the Bank. Please follow Wire Transfer instruction below:

Abacus Federal Savings Bank

ABA No. 226072870

For further Credit to Abacus Loan number___________,

Borrower’s Name____________________

Upon receipt of the correct payment, a satisfaction and release of mortgage or an assignment of Bank’s mortgage without recourse will be delivered to you or your attorney. You may request the Bank to attend your closing to deliver the document against receipt of the funds if the closing is in New York City and within traveling distance. A fee will be charged for the service.

To expedite the pay-off letter, be sure to include the following information in your or your attorney’s written request to the Bank:

• 1.Your Loan Number and property address.
• 2.Your name, address, telephone and fax numbers.
• 3.The anticipated pay-off date.
• 4.The type of documents required – satisfaction and release, or assignment of mortgage. If an assignment is requested, indicate the assignee’s name.
• 5.Your attorney’s name, address, telephone and fax numbers.