All the secondary market annuities we sell utilize a professional servicing company to handle the payment stream.  This is a policy used by the leaders of the SMA industry, and follows precisely the procedures used by institutional clients and securitization portfolios of Structured Settlement Annuities.  We have adopted the same procedures as a matter of good business policy. This page details how payment servicing works with SMA’s.

What Are The Benefits Of Payment Servicing?

Payment servicing is common in banking, credit card processing, securities, mortgage servicing, property management, IRA administration, investment management, consumer finance, auto finance… in short, nearly every transaction in the financial landscape involves a form of payment servicing.

The benefits of payment servicing are as follows:

  • Easy account administration for address & bank account changes
  • Easy administration for heirs/successors/beneficiaries of payments
  • Human interface for account issues
  • ACH transfers and direct deposit–incredibly, many insurance carriers will NOT accommodate ACH deposits!
  • Easy transferability of payments to new owners, beneficiaries, or heirs.

One of the key benefits of servicing is the last mentioned: transferability. It is a simple process for a purchaser to re-transfer a payment stream that is properly serviced.  No involvement from the seller, factor, or agent is required; since the purchaser holds all rights to the cash flow, they simply notify the servicer of a transfer.

Our Preferred Payment Servicer:

We have entered into a long term relationship with GoldStar Trust Company to perform payment servicing, account management, and policy service for our agents and clients.  GoldStar is the trust only branch of a $4B (assets) bank and is a market leader in self directed IRA administration as well.  Their regulatory and compliance structure and market leading position in IRA and bond administration makes them a trusted and stable partenr in our process.

GoldStar’s servicing platform ensures you always have a human interface to deal with any changes in your circumstances such as changing address or switching bank accounts. Whatever your needs, GoldStar will handle them directly with the carrier and you. The setup costs for this service are paid by the DCF Exchange and your payment servicing agreement is included in each case Closing Book.

Who Is GoldStar?

GoldStar Trust Company is the trust-only branch of a $4B Texas bank.  The Trust company is one of the nation’s leading Self-Directed IRA custodians and is known for its fantastic customer service and attention to detail. GoldStar serves as Paying Agent and Trustee for issuers of Church Bonds and Municipal Bonds in 38 states, and handles over 30,000 customer IRA accounts.  As a regulated custodian for billions of dollars of client assets, their expansion into payment servicing for Secondary Market Annuities is a natural extension of their capabilities..

Payment Servicing Fee Schedule:

  • Set Up Fees, paid by us
  • Periodic Fees, deducted from each payment received
    • $5 per distribution for monthly payment accounts
    • $25 per lump sum payment, deducted when the distribution is made

Considering the benefits, the payment servicing fees are nominal, and far less than IRA or other custodian service providers.  When you consider the liquidity options alone, servicing is a bargain!

Payment Servicing Summary:

Payment servicing offers benefits of liquidity, anonymity, and flexibility.  Reassigning, gifting, or direct depositing an SMA payment stream can be difficult without a servicing arrangement. Utilizing the best in class servicer, we offer you this additional flexibility on every case.