Loan Servicing Questions

You will continue to work with Merchants Bank and our local loan servicing team based in Winona, MN. We are proud to share that our loans are serviced locally, which means that our local staff will be there to help if you have questions about your payments or other loan-related items.

Only for certain types of loans:

• Personal loans (excluding mortgages) – Contact your lender to request changing your payment due date.
• Mortgage loans – Due to Secondary Market requirements (of Fannie Mae and Freddie Mac), mortgage payments must be scheduled on the 1st of the month.

Unfortunately, no. Because our mortgage loans follow Secondary Market guidelines (Fannie Mae and Freddie Mac), if we receive a partial mortgage payment, we are not allowed to keep that payment and must return it to the borrower.

Yes, just contact Loan Servicing. Make sure to include the date (either today’s date or one in the near future) and you’ll receive pay-off information verbally or in statement form based on your preference.

If you plan to pay off your loan early and have automatic payments set up, please contact Loan Servicing a few days before your final loan payment. This will provide enough time to cancel your automatic payment and minimize the chances of a duplicate payment.

Each year we will send you a 1098 statement, which includes much of the tax information you’ll need:

• Interest paid on your loan for the year
• Year-end principal balance
• If applicable, information on the property securing the loan

If you have questions anytime throughout the year – not just at tax time – the department is always able to provide you with your current loan balance.

Please reach out to the Loan Servicing Department at (800) 765-2194 or loanservicinghelpdesk@merchantsbank.com for guidance.

Yes. Our processor changed the way they produce loan coupons and coupons will now be provided four to a sheet on an 8.5x11 sheet of paper. Please detach and submit the appropriate coupon with your payment each month.

Mortgage loans have a 15-day grace period before late fees are assessed. Other personal loans and business loans have a 10-day grace period.

When a loan payment is unpaid for at least seven days past the payment due date, a payment reminder is sent as a courtesy. If you would like to avoid receiving this reminder, we suggest changing your automated payment to no later than five days after the payment due date.

Merchants Bank is required by law to mail out monthly mortgage statements for loans with electronic payments. At this time, we do not offer mortgage statements online.

Any additional money on top of your monthly payment is automatically applied to the principal of your loan. By applying extra money to the principal, a borrower can reduce the amount of overall interest paid on their loan.

The escrow statement you were sent is for informational purposes only. The analysis represents history since your last analysis statement.
 
Any balance in the escrow has been netted out in the payoff statement; therefore, no balance remains. If you have any questions, please contact Loan Servicing.

Please reach out to the Loan Servicing Department at (800) 765-2194 or loanservicinghelpdesk@merchantsbank.com for guidance.