Talon Title Agency
Talon Title Agency News & Updates

FHA Revised Mortgage Payoff Guidelines

Monday, January 26, 2015

A new policy is being implemented regarding payoffs for FHA loans that may impact the interest collected for the payoff of the seller's FHA loan.

Historically, when providing a mortgage payoff, the lender would calculate interest through a date certain (i.e. end of the month) even though the payoff likely includes the payment of interest post-closing.

On January 21st, 2015, the FHA instituted a rule designed to eliminate post-payoff interest charges. The new rule now allows an FHA-approved mortgagee to charge interest only through the date which if the mortgage is paid off and PROHIBITS charging interest beyond that date.

According to information available at this time, this policy will apply to new FHA insured mortgages, closed on or after January 21st, 2015.