The following is contained by this servicing Guide Procedure:
Applying home financing Loan Payment
The servicer must use monthly premiums into the purchase described within the table that is following 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 applicable. Such deposits can sometimes include:
fees and assessments;
property or MIPs;
leasehold re re 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 fees, if relevant
2. FHA solution fees, if relevant
5. Belated fees, if any
Determining the Interest part of online payday loans Tennessee home financing Loan re re Payment
The servicer must calculate the home loan interest part of the payment as follows, relative to C-1.1-01, Servicer obligations for Processing Mortgage Loan re re Payments.
a fixed-rate lien mortgage loan that is first
thirty daysвЂ™ interest in the UPB as of the LPI date and utilizing the accrual rate that is current.
a fixed-rate very very first lien mortgage loan that is biweekly
2 weeksвЂ™ interest in the UPB at the time of the LPI date and utilising the present interest accrual price.
a fixed-rate lien mortgage loan that is second
each payment making use of the payment-to-payment calculation technique, if this will be necessary by the safety tool. 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 if the home mortgage is present, the servicer must use monthly premiums within the purchase described into the following table, relative to Processing extra Principal re Payments for present home loans in C-1.2-01, Processing extra Principal re Payments.
using the planned payment that is monthly
use the planned payment per month first, then use the curtailment that is principal.
at virtually any period of the separately month
use the main curtailment first, then use the following planned month-to-month 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 Additional Principal repayments, agree to cut back the P&I repayment just (predicated on a re-amortization associated with present UPB and with the present rate of interest and remaining loan term) for just about any present profile home loan and for an ongoing very first lien home mortgage this is certainly 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 accounts for collecting any improvements made with respect to the debtor together with the home loan payoff, relative to C-1.2-03, Processing Payments in Comprehensive. The after table defines the servicerвЂ™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 1 month for the payoff date, if Fannie Mae advanced the funds.
Note: The payment of improvements should not be included included in the payoff proceeds.
Determining Interest on a Payoff
In conformity with C-1.1-01, Servicer duties for Processing Mortgage Loan repayments, the servicer must determine the actual quantity of interest charged into the debtor
in line with the UPB for the home mortgage,
as of the LPI date, and
utilising the interest accrual rate that is current.
The full monthвЂ™s interest should really be determined on such basis as a 360вЂ“day 12 months, while a partial monthвЂ™s interest should always be predicated on a year that is 365вЂ“day.
The servicer of a second lien mortgage loan or an FHA Title I loan may not utilize the rule of 78s ( or perhaps the amount of the digits) way for calculating the attention unless Fannie Mae has supplied approval because of this calculation technique.
The total amount of interest that could be charged towards the debtor is specified into the following table. 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, accounting and remitting to Fannie Mae.
Old-fashioned first lien and second lien mortgage loans