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)

This Servicing Guide Procedure offers the following:

Applying home financing Loan Payment

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

Instruments dated March 1999 or later

3. Deposits for escrow things, 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 costs, if any

Instruments dated before March 1999

1. Deposits for insurance coverage and taxes, if relevant

2. FHA solution costs, if relevant

5. Belated fees, if any

Determining the Interest part of a home loan Loan re re 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 obligations for Processing Mortgage Loan re Payments.

a fixed-rate very first lien home mortgage

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

a fixed-rate very very first lien mortgage loan that is biweekly

2 weeks’ interest regarding the UPB at the time of the LPI date and with the present interest accrual price.

a fixed-rate second lien home mortgage

each payment that is monthly the payment-to-payment calculation technique, if that is needed by the protection 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 prices may use.

Processing a Principal Curtailment

In the event that debtor includes a curtailment that is principal his / her payment per month if the home mortgage is present, the servicer must use monthly obligations when you look at the purchase described into the following table, prior to Processing extra Principal re Payments for present home mortgages in C-1.2-01, Processing extra Principal re re re Payments.

with all the planned payment that is monthly

use the planned payment per month first, then apply the major curtailment.

at some other period of the month, separately

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

After a considerable principal curtailment, the servicer may, according to Processing extra Principal repayments for present home loans in C-1.2-01, Processing extra Principal Payments, agree to cut back the P&I repayment just (predicated on a re-amortization for the present UPB and utilising the current interest and remaining loan term) for almost any present profile home loan and for a current first lien home mortgage that is in an MBS pool.

Gathering an Advance Made with respect to the Borrower at Payoff

Whenever a home loan loan is compensated in complete, the servicer accounts for collecting any improvements made with respect to the debtor combined with home mortgage payoff, relative to C-1.2-03, Processing Payments in Comprehensive. The after table defines the servicer’s duties pertaining to gathering improvements.

Gather any funds advanced with respect to the debtor.

Remit the payment being a remittance that is special Fannie Mae, and within 30 days regarding the payoff date, if Fannie Mae advanced level the funds.

Note: The payment of advances ought not to be included within the proceeds that are payoff.

Determining Interest on a Payoff

In conformity with C-1.1-01, Servicer obligations for Processing real estate loan repayments, the servicer must determine the quantity of interest charged to your borrower

in line with the UPB for the home mortgage,

at the time of the LPI date, and

utilizing the interest accrual rate that is current.

The full month’s interest must be determined based on a 360–day 12 months, while a partial month’s interest must certanly be centered on a year that is 365–day.

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

The total amount of interest which may be charged to your debtor is specified within the after table. This is simply not 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.

Traditional lien that is first second lien mortgage loans