This Servicing Guide Procedure contains the following:
Applying home financing Loan Payment
The servicer must apply monthly obligations into the purchase described within the after table, in conformity with C-1.1-01, Servicer obligations for Processing real estate 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 payments or ground rents; and
community relationship dues, charges, and fees.
4. Belated fees, if any
Instruments dated before March 1999
1. Build up for insurance coverage and taxes, if applicable
2. FHA solution fees, if relevant
5. Belated costs, if any
Determining the Interest part of a home loan Loan re re Payment
The servicer must determine the home loan interest part of the payment as follows, relative to C-1.1-01, Servicer duties for Processing real estate Loan re Payments.
a fixed-rate lien mortgage loan that is first
thirty daysвЂ™ interest from the UPB as of the LPI date and utilising the accrual rate that is current.
a fixed-rate first lien biweekly home mortgage
2 weeksвЂ™ interest regarding the UPB as of the LPI date and with the present interest accrual price.
a fixed-rate second lien home mortgage
each payment per month utilizing the payment-to-payment calculation technique, if this really is needed by the protection instrument. 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
In the event that debtor features 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 within the after table, according to Processing extra Principal re re re Payments for present home mortgages in C-1.2-01, Processing extra Principal re re re Payments.
because of the planned payment per month
use the planned payment per month first, then use the curtailment that is principal.
at some other period of the separately month
use the main curtailment first, then use the following planned monthly repayment.
After an amazing principal curtailment, the servicer may, relative 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 just (predicated on a re-amortization associated with present UPB and utilizing the present rate of interest and remaining loan term) for almost any present profile home mortgage or for a current very first lien home mortgage that is in an MBS pool.
Gathering an Advance Made on Behalf of the Borrower at Payoff
Whenever home financing loan is compensated in complete, the servicer is in charge of gathering any improvements made with respect to the debtor combined with the home loan payoff, prior to C-1.2-03, Processing Payments in Comprehensive. The table that is following the servicerвЂ™s duties pertaining to gathering improvements.
Gather any funds advanced with respect to the debtor.
Remit the repayment as being 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 repayment of improvements ought not to 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
on the basis of the UPB regarding the home loan,
at the time of the LPI date, and
utilizing the present interest accrual price.
The full monthвЂ™s interest must be determined based on a 360вЂ“day 12 months, while a partial monthвЂ™s interest should really be according to a year that is 365вЂ“day.
The servicer of a lien that is second loan or an FHA Title I loan may not utilize the guideline of 78s ( or even the amount of the digits) means 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 when you look at the after table. This is simply not fundamentally the total 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, easy payday loans in Michigan Remitting and Accounting to Fannie Mae.
Mainstream first lien and second lien mortgage loans