Application of payments on real estate accounts.

CFR · 2024-01-01 · US · Title 7

(a) (b) (2) Extra payments will be applied to the note secured by the earliest mortgage on the property from which the extra payment was obtained. (3) Funds remaining from an RH grant or a combination loan and grant, after completion of development, will be refunded. If the borrower received a combination loan and grant, the remaining funds up to the amount of the grant are considered to be grant funds. (c) (2) The collection official will complete Form RD, “Schedule of Remittances,” in accordance with the FMI. (d) (i) Payments will be applied first to satisfy any administrative costs such as a charge for an uncollectible check. (The amounts of any such charges are available from any Rural Development office.) (ii) Amounts paid on direct loan accounts will be credited to the borrower's account as of the date of Form RD 451-2 or for direct payments the date payment is received in the Finance Office, and will be applied first to a portion of any interest which accrues during the deferral period, second to interest accrued to the date received and third to principal, in accordance with the terms of the note. (iii) Amounts paid on insured loan accounts will be credited to the borrower's account as of the date of Form RD 451-2 or for direct payments the date payment is received in the Finance Office, and will be applied in the following order: (A) Advances from the insurance funds as shown on the latest (B) Principal advanced from the insurance fund. (C) Unamortized costs. (D) Amo

official document · source cfr-2024 · id 7:§ 1951.11