0

No calculation will be performed.

1

Interest is calculated from the Date Last Accrued up to but not including the Payoff Date. This code will calculate the investor interest on a 360-day basis for all full payments that are due, and then calculate interest on a 365-day basis for the odd days. It uses the current unpaid principal balance for all interest calculations. It is normally used for private investors, Freddie Mac, and Fannie Mae Actual/Actual. The due date of the loan will always be calculated to be the first day of the month.

2

Interest is calculated from the Date Last Accrued up to and including the end of the month in which the payoff occurs. This code will calculate the investor interest on a 360-day basis for all full payments that are due. It uses the current unpaid principal balance for all interest calculations.

3

Interest is calculated from the Date Last Accrued up to and including the 15th of the month in which the payoff occurs, if the payoff occurs on or before the 15th. If the payoff occurs after the 15th, interest is calculated from the Date Last Accrued to the end of the month in which the payoff occurs. This code will calculate the investor interest on a 360-day basis for all full payments that are due, and then calculate interest on a 365-day basis for the odd days. It uses the current unpaid principal balance for all interest calculations.

4

This code will calculate the investor interest on a 360-day basis for all full payments that are due, and then calculate interest on a 365-day basis for the odd number of days up to but not including the payoff date. Amortized principal balance figures will be used to calculate payoff interest. This code will normally be used with Residential Funding Corporation (RFC) loans.

5

This code will calculate the investor interest on a 360-day basis for all full payments that are due, and then calculate interest on a 365-day basis for the odd number of days up to but not including the payoff date. This code will add the service fee to the net interest to determine investor interest. Amortized principal balance figures will be used to calculate payoff interest.

6

This code will calculate the investor interest on a 360-day basis and calculate a full month’s interest for the month of payoff. This code will calculate the investor interest at the investor guaranteed rate. You must use this code for Mortgage-Backed Securities Systems (MBS) loans. Amortized principal balance figures will be used to calculate payoff interest.

7

Interest is calculated from the Date Last Accrued up to and including the Payoff Date. This code will calculate the investor interest on a 360-day basis for all full payments that are due, as well as for the odd days. It uses the current unpaid principal balance for all interest calculations.

8

Interest is calculated from the Date Last Accrued up to and including the Payoff Date. This code will calculate the investor interest on a 360-day basis for all full payments that are due, and then calculate interest on a 365-day basis for the odd days. It uses the current unpaid principal balance for all interest calculations.

9

Interest is calculated from the Date Last Accrued up to and including the 15th of the month in which the payoff occurs. This code will calculate the investor interest on a 360-day basis for all full payments that are due, and then calculate interest on a 360-day basis for the odd days. It uses the current unpaid principal balance for all interest calculations. It is used with Fannie Mae Scheduled/Actual loans.

10

Interest is calculated from the Date Last Accrued up to but not including the Payoff Date. This code will calculate the investor interest on a 365-day basis for all full payments that are due, as well as for the odd days. It uses the current unpaid principal balance for all interest calculations.

Payment method 5 (daily) and 6 loans will include accrued interest. Payment method 5 (periodic) will include finance charges and accrued interest.

11

Interest is calculated from the Date Last Accrued up to but not including the Payoff Date. This code will calculate the investor interest on a 360-day basis for all full payments that are due, as well as for the odd days. It uses the current unpaid principal balance for all interest calculations.

12

Interest is calculated from the Date Last Accrued up to but not including the Payoff Date. This code will calculate the investor interest on a 360-day basis for all full payments that are due, and then calculate interest on a 365-day basis for the odd days. It uses the current unpaid principal balance for all interest calculations. It is normally used for Freddie Mac Super Arc (PARC) loans. If the loan has a due date other than the first day of the month, the system enters the first of the month in the Date Last Accrued field. For example: The loan due date is 8-15 and the date last accrued is 7-15. The payoff is as of 8-25. Interest will be calculated from 7-1 to 8-25 and not from 7-15 to 8-25.

13

Interest is calculated from the Date Last Accrued up to but not including the Payoff Date. This code will use a 360-day basis. The calculation code uses the actual number of days in each month involved (using a 365-day year) for full-month and partial-month interest calculations. The formula for this code is: Principal x Rate x # of Days on 365-day year/360. You can only use this code with payment methods 0 and 7.

14

This is the same as code 7, except on a 365-day basis.

15

This is the suggested calculation code for contract collections. The system does not recalculate the interest at the time of the payoff (tran code 580). It uses the interest amount on the Payoff Calculation screen. This will pass the full amount of interest to the investor/seller. Note: If a loan has a service fee, the fee will be ignored. All interest is passed through as interest.