Appendix A - Merge Field Descriptions (Loans) > Event 35, FHA Loan Payoff Letter (Mortgages Issued on or after August 2, 1985, and Closed Before January 21, 2015)

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 fulfil to prevent accrual of interest on the mortgage loan after the pre-payment date.

To request this letter, submit a work order to FPS GOLD 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 Letters & Actions 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. Escrow/Reserves are not subtracted from the payoff amount.

For ease in your being able to tie to our figures, the escrow/reserves are not subtracted from the payoff amount (you don’t have to worry about interest on escrow/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
DEF Orig Int Bearing UPB	LWORIB	This is the original interest-bearing unpaid principal balance. This is the principal balance after the principal adjustment has been processed.
DEF Orig Deferred UPB	LWORDB	This is the original deferred unpaid principal balance. This is the amount of the principal adjustment.
DEF Orig Total UPB	LWORIB + LWORDB	This is the sum of the original interest-bearing principal balance and the original deferred unpaid principal balance.
DEF Curr Int Bearing UPB	LNPBAL	This is the current interest-bearing unpaid principal balance.
DEF Curr Deferred UPB	LWDUPB	This is the current deferred unpaid principal balance. Generally, this amount would always be the same as the original deferred unpaid principal balance.
DEF Curr Total UPB	LNPBAL + LWDUPB	This is the sum of the current interest-bearing principal balance and the current deferred unpaid principal balance. This is the total principal balance the customer owes before the loan can be paid off.
DEF Interest Deferral Amount	LWDINT	This the interest adjustment amount entered using the Modification Transaction tab.
DEF Late Charge Deferral Amount	LWDLTC	This the late charge adjustment amount entered using the Modification Transaction tab.
DEF Escrow Deferral Amount	LWDESC	This the escrow adjustment amount entered using the Modification Transaction tab.
DEF Misc Fee Deferral Amount	LWDFEE	This the Misc. Fee adjustment amount entered using the Modification Transaction tab.

FPS GOLD 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.

Event 35, FHA Loan Payoff Letter (Mortgages Insured on or after August 2, 1985, and Closed Before January 21, 2015)

Event 35, FHA Loan Payoff Letter (Mortgages Insured on or after August 2, 1985, and Closed Before January 21, 2015)