Code of Massachusetts Regulations
761 CMR - MASSACHUSETTS HOME MORTGAGE FINANCE AGENCY
Title 761 CMR 22.00 - Servicer's Guide
ACCOUNTING AND REPORTING
Section 22.34 - Application of Mortgage Payments
Current through Register 1531, September 27, 2024
The Servicer must apply all payments under each Loan Participation to respective interest, principal, escrow, and any late charge, in that order. The Servicer must maintain accurate records of all expenditures for taxes, assessments, and other public charges, hazard insurance premiums (if collected) and mortgage insurance premiums, and must annually certify to MHMFA that all insurance premiums, taxes, and assessments have been fully and properly paid with respect to all Loan Participations.
Servicer shall remit ten percent of all principal payments to Seller and 90% of all principal payments to MHMFA.
From interest payments received, Servicer shall
(a) deduct and retain a three eighths of one percent annual Servicing Fee, calculated monthly;
(b) remit to MHMFA monthly the MHMFA Required Rate;
(c) remit the balance, which shall not exceed the Adjusted Rate, to the Seller.
When payments due are not received, Servicer shall remit MHMFA's share of the interest to MHMFA as though payments have been received; provided, however, that in lieu of remitting such interest to MHMFA the Seller or Servicer shall have the option to purchase the Loan Participation owned by MHMFA. Servicer shall receive reimbursement including Servicing Fee at the time the delinquency is cured, or in the event of foreclosure, at the time of liquidation of the Mortgage Loan. Reimbursement from foreclosure proceeds will be made to Seller and MHMFA on a pro-rata basis, except that Servicer shall receive any Servicing Fee in arrears and the full amount of any interest advanced to MHMFA.
When the Servicer received prepaid installments of principal and interest, such amounts should be retained by the Servicer and only forwarded to MHMFA (and Seller) when due in accordance with the regular predetermined amortization schedule of the mortgage loan.
