Can the borrower make a principal curtailment to pay down or pay off the non-interest bearing balance created by a COVID-19 payment deferral?

 If…

Then…

a principal curtailment is received

• if the principal curtailment being applied is less than the interest-bearing UPB, the servicer must apply such curtailment to the interest-bearing UPB.

• if the principal curtailment is greater than or equal to the interest-bearing UPB, then the servicer must apply such curtailment in the following order:

            1. to the principal forbearance, if any; and

            2. to the interest-bearing UPB.

                                                                                                                          (4-02)