FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > B. TITLE II INSURED HOUSING PROGRAMS REVERSE MORTGAGES > 1. Servicing of FHA-Insured HECMs — f. Payment Administration
HUD effective date: 04/29/2024 · section III.B.1 · Handbook 4000.1
FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Payment Administration (04/29/2024).
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Verbatim provisions from FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > B. TITLE II INSURED HOUSING PROGRAMS REVERSE MORTGAGES > 1. Servicing of FHA-Insured HECMs — f. Payment Administration — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
FHA Single Family Housing Policy Handbook 4000.1, Part III — f. Payment Administration (04/29/2024)
f. Payment Administration (04/29/2024) i. Receipt of Payments (A) Definition Payments are any funds remitted to the Mortgagee to reduce the balance owed under the HECM. (B) Standard The Mortgagee must either use a Trust Clearing Account or special custodial account to hold all payments on the insured Mortgage. The Mortgagee’s Trust Clearing Account may be used for collections received on all types of Mortgages. If a Trust Clearing Account is not used, the Mortgagee must immediately transfer payments into a special custodial account. ii. Application of Payments Mortgagees must apply Borrower payments in the following order: • to MIPs due, if any; • to servicing fees, if any; • to interest on the Mortgage; and • to the principal of the Mortgage. iii. Trustee’s Fees for Satisfactions If specifically provided for in the security instrument, the Mortgagee may charge the Borrower the amount of the trustee’s fee, plus any reasonable and customary fees for payment, or for the execution of a satisfaction, release, or trustee’s deed when the debt is paid in full. iv. Recording Fees for Satisfactions The Mortgagee may charge the Borrower a reasonable and customary fee for recording satisfactions in states where recordation is not the responsibility of the Mortgagee.
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Source of record: https://claudeforcompliance.com/regs/hud-4000-1-iii-f-payment-administration/
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