9102.2: Late charges (03/02/16)

Owned by Kacey Olson (Unlicensed)
Nov 23, 2018
1 min read

© Freddie Mac Single-Family Seller Servicer Guide

(a) Late charge assessment The Servicer must not assess a late charge in an amount greater than 5% of the principal and interest payment. On an FHA or VA Mortgage, a late charge may be assessed and collected in accordance with the applicable program terms. The Servicer is responsible for collecting from the Borrower any recording or similar costs incidental to the granting of relief. The Servicer may not impose a late charge if the Mortgage is a Home Mortgage and the installment is received within 15 days* after the Due Date.

* If this date is a Saturday, Sunday or federal holiday, it is extended to the next Business Day. The Servicer may retain any late charge collected as additional Servicing compensation if the charge is allowed under the Note.

(b) Late charge collection Regardless of any provision to the contrary in the Note or the Security Instrument, the Servicer may not collect a late charge by any of the following methods:

  1. Charging the Borrower's Escrow or impound account
  2. Deducting from a regular monthly installment
  3. Deducting from a payment made to partially or fully cure a Delinquency
  4. Adding to the outstanding principal balance of the Mortgage
  5. Causing a Mortgage to become delinquent or be placed in foreclosure because of an unpaid late charge

For payment application requirements, refer to Sections 8103.4 through 8103.7.