F-1-09: Processing Real Estate Loan Re Re Payments and Payoffs (10/19/2016)
FHA loans which can be being refinanced as вЂњnewвЂќ
The payoff funds were received up to, but not including, the day.
All the FHA home mortgages (whatever the date these were endorsed for MI)
HUD-guaranteed Section 184 loans
as much as the date of payoff, for payoff funds received on an installment date that is due or
through the conclusion regarding the thirty days, for payoff funds received after an installment due date.
Note: if the installment deadline falls on a non-business day, the receipt for the payoff funds will be considered gotten regarding the installment deadline supplied these are generally received regarding 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 mortgage loans that are most. But, the servicer may collect a prepayment premium if most of the conditions set forth within the table that is following pleased together with home loan just isn’t a Texas area 50(a)(6) loan.
Have negotiated agreement that especially offers up the enforcement of the prepayment premium.
Meet up with the recommendations put down into the Selling Guide, B8вЂ“3вЂ“02, Special Note Provisions and Language needs.
Advise Fannie Mae for the number of the premium with regards to reports that are next Transaction Type 96 (LAR), no matter whether Fannie Mae allows the servicer to hold 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 total amount to be collected for payoff of this home mortgage, the servicer must think about any funds staying in a pastime buydown plan account. The table that is following additional guidance relative to Using Funds staying in mortgage loan Buydown Plan Account in C-1.2-03, Processing Payments in Comprehensive.
Decrease the payoff quantity because of the quantity of any staying buydown funds.
Maybe maybe maybe Not subtract the buydown funds through the home mortgage stability because an interest that is incorrect would result.
Satisfying the home loan and Releasing the Lien
After confirming the quantity necessary to spend the home mortgage in complete happens to be received, the servicer must perform most of the tasks specified when you look at the table that is following conformity with C-1.2-04, Satisfying the real estate loan and Releasing the Lien.
Note: The servicer should never pass to the debtor or even Fannie Mae any penalty fee this has to cover since it did not process the satisfaction and release papers inside the needed time period.
Eliminate Fannie MaeвЂ™s interest (or compared to the mortgagee of record) from all relevant home online payday loans direct lenders Montana insurance coverage policies.
Alert the taxing authorities that future income income income tax bills should always be delivered to the debtor (or even the servicer associated with the very first lien mortgage loan only if a second lien home mortgage is paid down).
Prepare and perform the release that is appropriate satisfaction papers identified by the Fannie Mae loan number and, if relevant, the MERS MIN.
Forward the satisfaction or launch papers, and an ask for the project of this custody papers, towards the following address:
Appropriate Document Execution
13150 Worldgate Drive
Herndon, VA 22070
Note: Fannie Mae will get back the performed documents quickly towards the servicer.
Alert the home loan guarantor or insurer regarding the payoff.
If the home mortgage can be an eMortgage, upgrade the MERS eRegistry with information associated with payoff, charge-off, or presumption.
Advise MERS to deactivate the MERS enrollment when it comes to home mortgage, if relevant.
A paper copy of the eNote marked вЂњCopyвЂќ and вЂњPaid-In-FullвЂќ 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 to your debtor describing that the debtor gets a paper content of this eNote that has been initially registered within the MERS eRegistry, and that the servicer has triggered the eNote to be deactivated regarding the MERS eRegistry because of re re payment in full, and
other papers and information needed by relevant legislation.
Remit Fannie MaeвЂ™s share associated with the payoff proceeds in conformity with all the remittance routine founded for the remittance kind under that your 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 MaeвЂ™s investor reporting system.
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