Prepayment Disclosure Statement
What is Prepayment Disclosure Statement?
Prepayment Disclosure Statement is statement on the amount outstanding on a FHA insured mortgage loan and the requirements that the borrower must fulfill to meet upon prepayment to prevent accrual of interest after the date of prepayment.
What It Means
The mortgage servicer provides the statement to the borrower on an annual basis for all FHA insured forward mortgage loans. The requirement for sending the disclosure is prescribed in the FHA Single Family Housing Policy Handbook under 4000.1 Part III (A) (1) (m) Disclosures
- Federal Housing Administration: Federal Housing Administration, generally known as FHA, is a division of Department of Housing and Urban Development that provides mortgage insurance ... Read More
- Housing and Urban Development: U.S. Department of Housing and Urban Development is a federal government agency of the US created to promote affordable homeownership and build sustai... Read More
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