F-1-09: Processing Real Estate Loan Payments and Payoffs (10/19/2016)
The following is contained by this servicing Guide Procedure:
Applying home financing Loan Payment
The servicer must use monthly obligations into the purchase described when you look at the table that is following in conformity with C-1.1-01, Servicer duties for Processing Mortgage Loan re Payments.
Instruments dated March 1999 or later on
3. Deposits for escrow products, as relevant. Such deposits can include:
fees and assessments;
home or MIPs;
leasehold re re re payments or ground rents; and
community relationship dues, costs, and fees.
4. Late fees, if any
Instruments dated before March 1999
1. Build up for insurance coverage and taxes, if relevant
2. FHA solution fees, if relevant
5. Belated fees, if any
Calculating the Interest percentage of a home loan 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 obligations for Processing Mortgage Loan re Payments.
a fixed-rate very first lien mortgage loan
thirty daysвЂ™ interest regarding the UPB at the time of the LPI date and with the present accrual price.
a fixed-rate very very first lien mortgage loan that is biweekly
2 weeksвЂ™ interest from the UPB as of the LPI date and utilizing the present interest accrual price.
a fixed-rate lien mortgage loan that is second
each payment that is monthly the payment-to-payment calculation method, whenever this really is necessary because of the safety tool. Otherwise, interest should be determined as outlined above.
each monthly payment predicated on its relevant interest accrual date that is effective.
Note: numerous interest accrual prices may use.
Processing a Principal Curtailment
If the debtor includes a major curtailment with his / her payment per month as soon as the home loan is present, the servicer must use monthly premiums within the purchase described into the after table, prior to Processing extra Principal Payments for present home mortgages in C-1.2-01, Processing extra Principal re re re Payments.
aided by the planned payment that is monthly
apply the planned payment per month first, then use the curtailment that is principal.
at some other period of the separately month
use the key curtailment first, then use the following planned month-to-month repayment.
The servicer may, in accordance with Processing Additional Principal Payments for Current Mortgage Loans in C-1.2-01, Processing Additional Principal Payments, agree to reduce the P&I payment only (based on a re-amortization of the current UPB and using the current interest rate and remaining loan term) for any current portfolio mortgage loan or for a current first lien mortgage loan that is in an MBS pool after a substantial principal curtailment.
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 on behalf of the debtor combined with the real estate loan payoff, prior to C-1.2-03, Processing Payments in Comprehensive. The table that is following the servicerвЂ™s obligations linked to gathering improvements.
Gather any funds advanced with respect to the debtor.
Remit the payment as being a remittance that is special Fannie Mae, and within thirty days of this payoff date, if Fannie Mae advanced the funds.
Note: The payment of improvements ought not to be included within the payoff proceeds.
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 total amount of interest charged to your debtor
on the basis of the UPB associated with the home loan,
at the time of the LPI date, and
utilizing the present interest accrual price.
A complete monthвЂ™s interest must certanly be determined based on a 360вЂ“day 12 months, while a partial monthвЂ™s interest must certanly be predicated on a 365вЂ“day year.
The servicer payday loans online Idaho direct lenders of a lien that is second loan or an FHA Title I loan may not utilize the guideline of 78s ( or even the sum 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 into the debtor is specified within the table that is following. This is simply not fundamentally the actual 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, Remitting and Accounting to Fannie Mae.
Traditional first lien and second lien mortgage loans