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

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

FHA loans which are being refinanced as “new”

as much as, yet not including, the afternoon the payoff funds had been gotten.

All the other FHA home mortgages (whatever the date these people 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 end of this thirty days, for payoff funds received after an installment deadline.

Note: if the installment due date falls for a non-business day, the receipt regarding the payoff funds will probably be considered gotten regarding the installment deadline provided they’ve been gotten regarding the next working day.

Gathering a Prepayment Premium

According to C-1.2-03, Processing Payments in Full, the servicer cannot impose or collect a prepayment premium on many home loans. Nonetheless, the servicer may gather a prepayment premium if all the conditions established into the following table are pleased together with real estate loan isn’t a Texas area 50(a)(6) loan.

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

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

Advise Fannie Mae of this collection 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 Buydown Arrange Account

Whenever determining the total amount to be gathered for payoff associated with the real estate loan, any funds must be considered by the servicer staying in a pastime buydown plan account. The table that is following additional guidance relative to Using Funds staying in mortgage Buydown Arrange Account in C-1.2-03, Processing Payments in Comprehensive.

Decrease the payoff quantity because of the level of any buydown that is remaining.

Perhaps Not subtract the buydown funds through the home mortgage stability because a wrong interest calculation would result.

Satisfying the home loan and Releasing the Lien

After confirming the quantity required to spend the real estate loan in complete was gotten, the servicer must perform every one of the tasks specified into the after table in accordance with C-1.2-04, Satisfying the home loan and Releasing the Lien.

Note: The servicer should never pass about the debtor or even to Fannie Mae any penalty charge it offers to pay for given that it didn’t process the satisfaction and release documents within the needed time period.

Eliminate Fannie Mae’s interest (or compared to the mortgagee of record) from all property that is applicable policies.

Inform the taxing authorities that future tax bills must certanly be provided for the borrower (or even to the servicer associated with the lien that is first loan only if an extra lien home mortgage is paid down).

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

Forward the satisfaction or launch documents, and a request for the project of this custody papers, towards the after address:

Appropriate Document Execution

13150 Worldgate Drive

Herndon, VA 22070

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

Alert the home loan insurer or guarantor associated with the payoff.

In the event that home loan https://spot-loan.net/payday-loans-md/ is an eMortgage, upgrade the MERS eRegistry with information for the payoff, charge-off, or presumption.

Advise MERS to deactivate the MERS enrollment for the home loan, if applicable.

In the event that eMortgage is guaranteed by home in circumstances that needs the return of the paper Note upon loan payoff, supply the borrower of a eMortgage a paper content for the eNote marked “Copy” and “Paid-In-Full” you need to include:

a page towards the debtor describing that the debtor receives a paper content associated with eNote that was initially registered into the MERS eRegistry, and therefore the servicer has triggered the eNote to be deactivated regarding the MERS eRegistry as a result of re payment in full, and

other documents and information needed by relevant legislation.

Remit Fannie Mae’s share of this proceeds that are payoff conformity utilizing the remittance schedule founded for the remittance kind under that the home mortgage 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 reporting system.

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