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

This Servicing Guide Procedure offers the following:

Applying home financing Loan Payment

The servicer must use monthly obligations into the purchase described into the after table, in conformity with C-1.1-01, Servicer obligations for Processing real estate Loan re re Payments.

Instruments dated March 1999 or later on

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

fees and assessments;

home or MIPs;

leasehold re payments or ground rents; and

community relationship dues, costs, and fees.

4. Belated costs, if any

Instruments dated before March 1999

1. Build up for insurance and taxes, if relevant

2. FHA solution fees, if relevant

5. Belated fees, if any

Determining the Interest part of home financing Loan re re Payment

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

a fixed-rate very first lien home mortgage

thirty days’ interest regarding the UPB as of the LPI date and with the current accrual price.

a fixed-rate very very first lien biweekly home loan

2 weeks’ interest regarding the UPB at the time of the LPI date and utilizing the interest accrual rate that is current.

a fixed-rate second lien home mortgage

each payment per month utilizing the payment-to-payment calculation technique, whenever that is needed by the safety tool. Otherwise, interest needs to be determined as outlined above.

each payment per month centered on its relevant effective interest accrual date.

Note: numerous interest accrual rates may use.

Processing a Principal Curtailment

In the event that debtor features a curtailment that is principal their payment once the home mortgage is present, the servicer must use monthly premiums when you look at the purchase described within the following table, relative to Processing extra Principal re re Payments for present home mortgages in C-1.2-01, Processing extra Principal Payments.

with all the scheduled payment that is monthly

use the scheduled payment per month first, then use the curtailment that is principal.

at some other period of the thirty days, separately

use the main curtailment first easy online payday loans in North Dakota, then use the following scheduled month-to-month repayment.

After an amazing principal curtailment, the servicer may, prior to Processing extra Principal repayments for Current home loans in C-1.2-01, Processing extra Principal repayments, agree to lessen the P&I repayment just (according to a re-amortization associated with the present UPB and with the current interest and remaining loan term) for almost any present profile real estate loan and for an ongoing very first lien home mortgage this is certainly in an MBS pool.

Gathering an Advance Made with respect to the Borrower at Payoff

Whenever a home loan loan is compensated in full, the servicer is in charge of gathering any improvements made with respect to the debtor combined with the home mortgage payoff, according to C-1.2-03, Processing Payments in Comprehensive. The table that is following the servicer’s duties associated with gathering improvements.

Collect any funds advanced with respect to the debtor.

Remit the payment as a remittance that is special 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.

Determining 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 the home mortgage,

as of the LPI date, and

making use of the interest accrual rate that is current.

A complete month’s interest must be determined on such basis as a 360–day 12 months, while a partial month’s interest should be centered on a 365–day 12 months.

The servicer of a lien that is second loan or an FHA Title I loan may not utilize the guideline of 78s ( or perhaps the amount of the digits) way of determining the attention unless Fannie Mae has furnished approval because of this calculation technique.

The actual quantity of interest that could be charged to your debtor is specified within the after table. This isn’t always the amount of interest which will be remitted to Fannie Mae. Also see C-3-02, Remitting Payoff Profits. The servicer must stick to the procedures in F-1-21, accounting and remitting to Fannie Mae.

Traditional lien that is first second lien mortgage loans