CBC Mortgage Agency recently updated its policy for the collection of Mortgage Insurance Premiums. Previously, CBCMA would collect monthly MIP based on their investor policy, which often resulted in collecting monthly MIP on any future payments received by the correspondent and would leave with the correspondent any monthly MIP on payments collected by the correspondent prior to loan sale. Going forward, a new policy has been adopted to standardize this process and is as follows:
For mortgage payments collected by the correspondent after loan sale, payment of the MIP is the responsibility of the correspondent and funds will not be collected in the purchase advice.
For mortgage payments collected by the correspondent prior to loan sale, CBCMA will check HUD’s website and if the monthly premium was paid, CBCMA will not withhold MIP in the PA. If the monthly premium(s) was not paid, CBCMA will withhold from the PA those monthly MIPs and any late fees due and will pay the premiums.
The correspondent is responsible for the payment of all monthly MIPs on any payments collected prior to loan sale and if those premiums are not paid, the correspondent will be responsible for any late assessments. This policy is effective immediately.