F-1-09: Processing Home Mortgage Re Re Payments and Payoffs (10/19/2016)

F-1-09: Processing Home Mortgage Re Re Payments and Payoffs (10/19/2016)

The following is contained by this servicing Guide Procedure:

Applying a home loan Loan Payment

The servicer must use monthly obligations into the purchase described within the following table, in conformity with C-1.1-01, Servicer duties for Processing Mortgage Loan re re Payments.

Instruments dated March 1999 or later on

3. Deposits for escrow products, as relevant. Such deposits can sometimes include:

fees and assessments;

property or MIPs;

leasehold payments or ground rents; and

community relationship dues, charges, and costs.

4. Belated fees, if any

Instruments dated before March 1999

1. Build up for insurance coverage and fees, if relevant

2. FHA solution fees, if relevant

5. Late fees, if any

Determining the Interest percentage of home financing Loan re Payment

The servicer must determine the home loan interest percentage of the payment that is monthly follows, relative to C-1.1-01, Servicer duties for Processing real estate Loan re re Payments.

a fixed-rate lien mortgage loan that is first

thirty days’ interest from the UPB as of the LPI date and utilising the accrual rate that is current.

a fixed-rate very first lien biweekly real estate loan

2 weeks’ interest in the UPB as of the LPI date and making use of the interest accrual rate that is current.

a fixed-rate second lien mortgage loan

each payment per month utilizing the payment-to-payment calculation method, if this might be needed because of the protection tool. Otherwise, interest needs to be determined as outlined above.

each payment per month predicated on its relevant interest accrual date that is effective.

Note: numerous interest accrual prices may use.

Processing a Principal Curtailment

If the debtor features a curtailment that is principal his / her payment per month if the home loan is present, the servicer must use monthly premiums within the purchase described within the following table, relative to Processing extra Principal re re re Payments for Current home loans in C-1.2-01, Processing extra Principal Payments.

aided by the planned payment that is monthly

use the planned payment per month first, then use the principal curtailment.

at virtually any period of the month, separately

use the key curtailment first, then use the following planned payment that is monthly.

After a considerable principal curtailment, the servicer may, prior to Processing extra Principal repayments for present home mortgages in C-1.2-01, Processing Additional Principal repayments, agree to cut back the P&I repayment just (according to a re-amortization for the current UPB and utilizing the present rate of interest and remaining loan term) for almost any present profile real estate loan or for a current very first lien home mortgage that is in an MBS pool.

Gathering an Advance Made with respect to the Borrower at Payoff

Whenever home financing loan is compensated in complete, the servicer accounts for collecting any improvements made with respect payday loans MA to the borrower together with the home mortgage payoff, relative to C-1.2-03, Processing Payments in Comprehensive. The after table defines the servicer’s obligations associated with collecting improvements.

Collect any funds advanced with respect to the debtor.

Remit the repayment as being a unique remittance to Fannie Mae, and within thirty day period associated with the payoff date, if Fannie Mae advanced level the funds.

Note: The payment of improvements should not be included within the payoff proceeds.

Calculating Interest on a Payoff

The servicer must calculate the amount of interest charged to the borrower in accordance with C-1.1-01, Servicer Responsibilities for Processing Mortgage Loan Payments

in line with the UPB associated with real estate loan,

at the time of the LPI date, and

making use of the interest accrual rate that is current.

A full month’s interest ought to be calculated based on a 360–day 12 months, while a partial month’s interest ought to be according to a 365–day 12 months.

The servicer of a second lien mortgage loan or an FHA Title I loan may not utilize the guideline of 78s ( or the sum of the digits) way of determining the attention unless Fannie Mae has supplied approval because of this calculation method.

The total amount of interest that could be charged into the debtor is specified into the table that is following. This isn’t fundamentally the quantity of interest which is remitted to Fannie Mae. Also see C-3-02, Remitting Payoff Profits. The servicer must proceed with the procedures in F-1-21, accounting and remitting to Fannie Mae.

Old-fashioned lien that is first second lien mortgage loans

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