The following is contained by this servicing Guide Procedure:
Applying home financing Loan Payment
The servicer must use monthly obligations when you look at the purchase described into the table that is following in conformity with C-1.1-01, Servicer obligations for Processing Mortgage Loan 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 re re payments or ground rents; and
community relationship dues, costs, and fees.
4. Belated fees, if any
Instruments dated before March 1999
1. Build up for insurance and fees, if applicable
2. FHA solution costs, if relevant
5. Belated costs, if any
Determining the Interest percentage of home financing Loan re re Payment
The servicer must determine the mortgage interest part of the payment as 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 daysвЂ™ interest regarding the UPB as of the LPI date and utilising the present accrual rate.
a fixed-rate very very first lien biweekly home loan
2 hyperlink weeksвЂ™ interest from the UPB at the time of the LPI date and making use of the interest accrual rate that is current.
a fixed-rate lien mortgage loan that is second
each payment per month making use of the payment-to-payment calculation method, if this will be required because of the protection tool. Otherwise, interest must certanly be determined as outlined above.
each monthly payment centered on its relevant effective interest accrual date.
Note: Multiple interest accrual prices may use.
Processing a Principal Curtailment
In the event that debtor features a curtailment that is principal his / her payment per month as soon as the real estate loan is current, the servicer must use monthly obligations into the order described within the after table, relative to Processing extra Principal re re Payments for present home mortgages in C-1.2-01, Processing extra Principal re Payments.
because of the planned payment that is monthly
use the planned payment per month first, then use the major curtailment.
at some other period of the separately month
use the main curtailment first, then apply the following 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 repayments, agree to cut back the P&I repayment only (considering a re-amortization for the current UPB and utilizing the current rate of interest and remaining loan term) for almost any present profile home loan or even for an ongoing 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 is in charge of collecting 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 servicerвЂ™s duties linked 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 thirty day period of this 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
In conformity with C-1.1-01, Servicer obligations for Processing Mortgage Loan repayments, the servicer must calculate the actual quantity of interest charged towards the debtor
in line with the UPB associated with the home loan,
as of the LPI date, and
with the present interest accrual price.
The full monthвЂ™s interest must certanly be determined on such basis as a 360вЂ“day 12 months, while a partial monthвЂ™s interest is predicated on a 365вЂ“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 amount of the digits) way for determining the attention unless Fannie Mae has furnished approval with this calculation technique.
The quantity of interest which may be charged to your debtor is specified within the table that is following. It is not always the total amount of interest that’ll be remitted to Fannie Mae. Also see C-3-02, Remitting Payoff Profits. The servicer must stick to the procedures in F-1-21, Remitting and Accounting to Fannie Mae.
Traditional first lien and second lien mortgage loans