The servicer must immediately accept and apply an additional principal payment (referred to as a curtailment) identified by the borrower as such for a current mortgage loan.
The servicer must follow the procedures in Processing a Curtailment in F-1-09, Processing Mortgage Loan Payments and Payoffs (10/19/2016) for detailed instructions related to applying a curtailment for a current mortgage loan.
For additional contractual information as it pertains to curtailments, see Fannie Mae’s Selling Guide Topic B2–1.4–05: Principal Curtailments.
Modified Mortgage Loans: The following table outlines how the servicer must apply a curtailment on a modified mortgage loan
Note:For processing HAMP “pay for performance” incentives, see Incentive Compensation for a HAMP Modification in F-1-19, Processing a Workout Incentive Fee (09/13/2017).
For more information please see: C-1.2-01, Processing Additional Principal Payments and F-1-09, Processing Mortgage Loan Payments and Payoffs