F-1-09: Processing Real Estate Loan Re Re Re Payments and Payoffs (10/19/2016)

F-1-09: Processing Real Estate Loan Re Re Re Payments and Payoffs (10/19/2016)

FHA loans which can be being refinanced as “new”

The payoff funds were received up to, but not including, the day.

All the FHA home loans (whatever the date these were endorsed for MI)

HUD-guaranteed Section 184 loans

as much as the date of payoff, for payoff funds received for an installment deadline; or

through the finish regarding the thirty days, for payoff funds received after an installment date that is due.

Note: if the installment deadline falls for a non-business day, the receipt of this payoff funds will probably be considered gotten regarding the installment deadline supplied these are generally gotten from the business day that is next.

Gathering a Prepayment Premium

According to C-1.2-03, Processing Payments in Full, the servicer cannot impose or gather a prepayment premium on mortgage loans that are most. But, the servicer may gather a prepayment premium if all the conditions established when you look at the table that is following pleased plus the home mortgage just isn’t a Texas area 50(a)(6) loan.

Have negotiated agreement that particularly offers up the enforcement of the prepayment premium.

Meet with the directions lay out when you look at the Selling Guide, B8–3–02, Special Note Provisions and Language needs.

Advise Fannie Mae regarding the number of the premium with regards to next reports a Transaction Type 96 (LAR), no matter whether Fannie Mae allows the servicer to retain the prepayment premium or requires it to remit the premium to Fannie Mae.

Applying Funds Remaining After Payoff in mortgage loan Buydown Arrange Account

Whenever determining the quantity to be gathered for payoff for the home loan, any funds must be considered by the servicer staying in a pursuit buydown plan account. The following table provides additional guidance relative to Using Funds staying in mortgage loan Buydown Arrange Account in C-1.2-03, Processing Payments in Comprehensive.

Decrease the payoff amount by the number of any buydown that is remaining.

maybe perhaps Not subtract the buydown funds through the home loan stability because a wrong interest best online payday loans in Wisconsin calculation would result.

Satisfying the home loan and Releasing the Lien

After confirming the quantity expected to spend the home loan in complete was received, the servicer must perform all the tasks specified into the table that is following conformity with C-1.2-04, Satisfying the home loan and Releasing the Lien.

Note: The servicer should never pass onto the debtor or even to Fannie Mae any penalty charge it’s to cover given that it neglected to process the satisfaction and release papers inside the needed time period.

Eliminate Fannie Mae’s interest (or compared to the mortgagee of record) from all relevant home insurance policies.

Inform the taxing authorities that future income income income tax bills must certanly be delivered to the debtor (or even the servicer regarding the lien that is first loan only if a second lien mortgage loan is paid down).

Prepare and perform the release that is appropriate satisfaction papers identified by the Fannie Mae loan quantity and, if relevant, the MERS MIN.

Forward the satisfaction or release papers, and a request the project associated with the custody papers, towards the address that is following

Legal Document Execution

13150 Worldgate Drive

Herndon, VA 22070

Note: Fannie Mae will get back the performed papers quickly to your servicer.

Alert the home loan guarantor or insurer associated with payoff.

In the event that home loan is definitely an eMortgage, upgrade the MERS eRegistry with information for the payoff, charge-off, or presumption.

Advise MERS to deactivate the MERS enrollment when it comes to real estate loan, if relevant.

In the event that eMortgage is guaranteed by property in a situation that will require the return of the paper Note upon loan payoff, give you the debtor of a eMortgage a paper content regarding the eNote marked “Copy” and “Paid-In-Full” and can include:

A letter to the borrower explaining that a paper is being received by the borrower copy associated with the eNote that was initially registered within the MERS eRegistry, and that the servicer has triggered the eNote to be deactivated regarding the MERS eRegistry as a result of re re payment in full, and

other papers and information needed by relevant law.

Remit Fannie Mae’s share for the proceeds that are payoff conformity with all the remittance routine founded for the remittance kind under that your home loan is reported.

Code the payoff as Action Code 60 with regards to next reports a Transaction Type 96 (LAR) to Fannie Mae through Fannie Mae’s investor system that is reporting.

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