If, after making a substantial principal curtailment, the borrower requests that the mortgage loan balance be re-amortized to reduce the mortgage loan payment, the servicer must:
- complete an Agreement for Modification, Re-Amortization, or Extension of a Mortgage (Form 181). Form 181 must only be revised as authorized in its instructions,
- provide the borrower and the document custodian the completed Form 181 and
- report the payment change as described in Reporting a Transaction Type 83 (Payment/Rate Change Record) in the Investor Reporting Manual.
The servicer must determine, in compliance with applicable law, if the borrower is required to execute Form 181 to ensure that the mortgage loan maintains its first lien position and is fully enforceable.
For more information please see: C-1.2-01, Processing Additional Principal Payments.