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

F-1-09: Processing Home 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 (no matter what the date they certainly were endorsed for MI)

HUD-guaranteed Section 184 loans

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

through the conclusion for 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 associated with payoff funds will be considered gotten from the installment deadline provided they’ve been gotten from the next working day.

Gathering a Prepayment Premium

According to C-1.2-03, Processing Payments in Full, the servicer cannot impose or gather a prepayment premium on many home loans. Nevertheless, the servicer may gather a prepayment premium if most of the conditions set forth when you look at the table that is following pleased therefore the home loan is certainly not a Texas area 50(a)(6) loan.

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

Meet with the directions lay out into the Selling Guide, B8–3–02, Special Note Provisions and Language demands.

Advise Fannie Mae associated with the assortment of the premium with regards to reports that are next 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 Plan Account

Whenever determining the total amount to be gathered for payoff regarding the home loan, the servicer must give consideration to any funds staying in a pastime 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.

Lessen the payoff quantity by the quantity of any staying buydown funds.

Maybe Not subtract the buydown funds through the home loan balance because a wrong interest calculation would result.

Satisfying the home mortgage and Releasing the Lien

After verifying the quantity necessary to spend the home loan in complete happens to be gotten, the servicer must perform all the tasks specified into the after table in conformity with C-1.2-04, Satisfying the real estate loan and Releasing the Lien.

Note: The servicer should never pass on to the debtor or to Fannie Mae any penalty charge this has to cover given that it did not process the launch and satisfaction papers inside the needed time period https://titlemax.us/payday-loans-co/.

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

Inform the taxing authorities that future income income tax bills must certanly be delivered to the debtor (or even to the servicer associated with the lien that is first loan only if an additional lien home mortgage is paid).

Prepare and perform the appropriate launch or satisfaction documents identified because of the Fannie Mae loan quantity and, if relevant, the MERS MIN.

Forward the satisfaction or release papers, and a obtain the project regarding the custody papers, into the address that is following

Appropriate Document Execution

13150 Worldgate Drive

Herndon, VA 22070

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

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

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

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

A paper copy of the eNote marked “Copy” and “Paid-In-Full” and include if the eMortgage is secured by property in a state that requires the return of a paper Note upon loan payoff, provide the borrower of an eMortgage

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 because of payment in full, and

other papers and information needed by relevant law.

Remit Fannie Mae’s share associated with payoff proceeds in conformity because of the remittance routine founded for the remittance type under that your real estate 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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