7-8: LATE CHARGES (11/18/1994)

Owned by Kacey Olson
Nov 25, 2018
1 min read

© HUD Single Family Housing Policy Handbook 4235.1

A late charge equal to 4 percent of the initial or monthly MIP remitted will be assessed whenever payment of the MIP is not received in full on the required date. The correct information must have been transmitted and the ACH transaction must have occurred for the payment to be considered received in full.


A. Initial MIP. Payments received more than 15 calendar days after the closing date will be subject to late charges. Nonpayment of a late charge will result in delaying endorsement.
B. Monthly MIP. Payments received after the tenth of the month will be subject to late charges.

The lender must ensure that payment is made earlier if the required dates fall on holidays or weekends.

The automated system will compute the late charge due and will not allow the lender to remit the MIP without including the late charge. The lender cannot add the amount of any late charge to the borrower's outstanding balance.