The loan’s “Delinquent Interest” for capitalization, amount of delinquent interest from the loan’s expected last paid installment date before capitalization until one month prior to the loan’s expected “Modification Effective Date”
SMDU no longer calculates delinquent interest for a Daily Simple Interest (DSI) loan or for a loan that is declared by the servicer as currently receiving relief from the Servicemembers Civil Relief Act (SCRA). Servicers should identify loans currently under SCRA relief by selecting “One or More Borrowers Currently Receive” from the drop down in the “What is the borrower(s)’ SCRA relief status?” field on the Delinquency & Foreclosure page in the SMDU UI. Servicers must include the delinquent interest in the request and SMDU will use the amount provided to evaluate these types of loans for a workout.
! NOTE: The (pre-workout) Interest Rate and the (pre-workout) Monthly Principal & Interest payment amount provided in the request should be the contractual amounts, not the amounts adjusted by the relief the borrower is receiving through SCRA. The table below provides an example of what to provide in those fields when a borrower is receiving SCRA relief:
Note: You must use the interest from the loan’s amortization table versus using the “payoff” method, if you use the “payoff’ method your delinquent interest calculation will most likely never match what SMDU calculates.