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Event 35, FHA Loan Payoff Letter (Insured Prior to August 2, 1985)

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Event 35, FHA Loan Payoff Letter (Insured Prior to August 2, 1985)

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This letter is sent once a year as required by the National Affordable Housing Act, section 329 and follows the format defined by HUD. In the afterhours on the date requested by the institution, the system automatically selects letter 35 or 36 using the Date Opened field (LNOPND). The letter prints the payoff amount, the fees pertaining to the payoff either as part of the total payoff amount or as a separate amount, and any requirements the borrower must fulfill to prevent accrual of interest on the mortgage loan after the pre-payment date.

 

To request this letter, submit a work order to GOLDPoint Systems indicating the telephone number of your Loan Service Department for the borrower to call, the name and title of the employee who signs the letter, and how the payoff fees are disclosed.

 

To manually generate this letter, set up the event in the Event Letters, Numbers & Dates fields on the Actions/Holds/Events tab on various screens in CIM GOLD. The payoff is calculated to the end of the month following the date that the event letter is requested.

 

The payoff is calculated as follows: Principal Balance on the date the letter is created multiplied by the Interest Rate, then divided by 12 (months). The system then adjusts the interest amount for prepaid or delinquent loans. The interest is always calculated through the end of the month following the month the letter was created.

 

Example: If the letter was created in December, the calculation is through January 31. Reserves are not subtracted from the payoff amount.

 

For ease in your being able to tie to our figures, the reserves are not subtracted from the payoff amount (you don’t have to worry about interest on reserves). The event will only generate on loans with an Insurer code (LNINSU) of 1 (FHA) found on the Loans > Account Information > Account Detail screen.

 

Merge Field

Field Mnemonic/ Calculation

Description

FHA ACCOUNT NUMBER

LNFVNO

FHA account number

FHA PAYOFF AMOUNT

LNPBAL * CALC
INT + LNLATE + LNFEES

principal balance + interest (principal * loan rate / 12 * # of months prepaid or delinquent) + late charges + total loan fees

FHA PAYOFF DATE

RUN DATE + 1 MON THEN MAKE END OF MONTH

Date the payoff is calculated to (end of the month following the month the letter was created)

FHA PO AMOUNT WITH PO FEE

LNPBAL * CALC INT + LNLATE + LNFEES + OPT FHAF

FHA PAYOFF AMOUNT plus payoff fee from inst options

FHA PO FEE

OPT FHAF

Payoff fee from the institution option

 

GOLDPoint Systems ONLY

 

FHAD

Set this option (FHA Disclosure letter run date MMDD) to have the letters run every year on the same month and day.

 

FHAF

Set this option (FHA Disclosure extra fee) to disclose the fees pertaining to the payoff.

 

 

See also:

Appendix A

Common Fields (All Events)

CIS Fields

Basic Loan Fields

 

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