Under certain circumstances, MassHousing may subordinate its mortgage lien to a new first mortgage. Please contact a HomeOwnership Mortgage Service Center Representative at 888.843.6432 (888.the.MHFA) for more information.

Do I need to obtain approval from MassHousing prior to getting a Home Equity Loan or Line of Credit?

No, it is not necessary to obtain approval from MassHousing in order to obtain a Home Equity Loan or Line of Credit, either of which would be secured by a lien that is junior to MassHousing's mortgage.

Do I need to obtain approval from MassHousing in order to rent my current property, which is financed by a MassHousing loan?

Yes. Most mortgage loans financed by MassHousing require that you occupy the property as your primary residence. Please contact a HomeOwnership Mortgage Service Center Representative at 888.843.6432 (888.the.MHFA) for more information.

What is a Recapture Penalty and will I have to pay one if I pay off my MassHousing account?

If your account was financed with funds made available by MassHousing through the sale of tax-exempt Mortgage Revenue Bonds (an MRB Loan), current federal tax law may require you to pay a subsidy recapture to the federal government if you sell or otherwise transfer your house within the first nine years after the closing date of the account. If you refinance your account within the first nine years but do not otherwise sell or transfer your home, no subsidy recapture will be due at the time of the refinancing. However, you may have to make a payment of subsidy recapture if you subsequently sell or otherwise transfer your home within the original nine-year period. Please contact your local IRS office or your tax advisor for assistance with calculating the Recapture Tax. MassHousing is not responsible for the calculation, collection or payment of any Recapture Tax to the IRS. However, if your account was closed on or after January 1, 2006, MassHousing will reimburse you for the amount of any Recapture Tax that you pay, subject to the terms, conditions, and documentation requirements described in the Federal Recapture Tax Reimbursement Policy Disclosure/Application. Please contact a HomeOwnership Mortgage Service Center Representative at 888.843.6432 (888.the.MHFA) for further information.

Who do I contact about refinancing my current property?

You are a valued customer and we want to provide assistance to you in making this decision. Whether you're ready to begin the mortgage application process or are seeking more information, contact the HomeOwnership Mortgage Service Center by email or by phone at 888.843.6432 (888.the.MHFA). You may also obtain information on our Refinance Program at www.masshousing.com/refinance

Payments

Can I change my payment due date?

Unfortunately we are not able to change the payment due date stated on your Note. If you are experiencing difficulty with making your payment on the due date, please call us at 888.843.6432 (888.the.MHFA) to discuss your specific situation.

Can I make my payment at one of my originating mortgage lender's location(s)?

No. The servicing of your account was transferred to MassHousing. As such, your originating mortgage lender does not have the ability to process a payment to your account serviced at MassHousing.

Can I make my payment at a MassHousing office?

Yes, MassHousing will accept payments delivered to its offices at One Beacon Street, 6th Floor, Boston, MA, weekdays during the hours of 9 a.m. to 5 p.m. (excluding holidays).

Can I have my monthly payment deducted directly from my Checking or Savings Account?

Yes, our Automatic Payment Service is available to you at no cost. Relax knowing that your payment will never be late and you will no longer need to write and mail a check. The automatic deduction will occur on the same day each month. If the payment day is not a business day, the deduction will occur on the next business day. You will continue to receive monthly statements showing the application of the payment and the amount of the next payment due.

What other payment options does MassHousing offer?

One-Time Payment: This service is available at no cost. A one-time payment can be requested via phone or online for the same day posting of your payment, with a 2-day delay in the withdrawal of funds from your payment account, or a single withdrawal scheduled for another day in the future. Please contact a HomeOwnership Mortgage Service Center Representative at 888.843.6432 (888.the.MHFA) for more information.

Where should I mail my payment if I misplace the payment coupon?

If you misplace your payment coupon, please write your MassHousing account number on your check, make the check payable to MassHousing and mail it to

MassHousing
Attn: HomeOwnership Mortgage Accounting
One Beacon Street
Boston, MA 02108-3110

You may send your payment via Overnight Mail to the same address.

When is my payment considered late?

Your payment is due on the date specified in the Note you signed at closing (usually the first day of each month). Although your payment is considered overdue the day after the specified due date, it is not considered "late" if it is received by the 16th of the month. A late charge will be assessed to your account if your payment is received after the 16th of the month. Only those payments received more than 30 days after the due date are reported to the Credit Bureaus as past due.

What should I do and what are my options if I am unable to make my monthly payments?

The first thing to do is call us at 888.843.6432 (888.the.MHFA). We have experienced Counselors available to answer your questions. Options may include:

Forbearance Plan - A forbearance plan is a short term agreement between you and MassHousing which allows for reduced payments with the expectation that the account will be reinstated at the end of the plan.
Repayment Plan - A repayment plan is a written agreement between you and MassHousing that requires a monthly payment plus an additional amount to reinstate the account over a period of time.
Loan Modification - A loan modification is a permanent change in one or more terms of the loan itself. With a loan modification, the account is reinstated resulting in an agreed upon payment.
Partial Claim - (Only for FHA loans.) A partial claim is an advance of funds to a mortgagor in an amount necessary to reinstate a delinquent account (not to exceed 12 monthly payments). This workout option is only offered when a mortgagor does not have the ability to repay the delinquency through a repayment plan or loan modification.
Pre-Foreclosure/Short Sale - The pre-foreclosure/short sale option enables a mortgagor to sell his/her home and use the sale proceeds to satisfy the mortgage debt even if the proceeds are less than the amount owed. Repayment of all or part of the remaining debt may be required depending on the financial condition of the mortgagors.
Deed-in-Lieu of Foreclosure - A deed-in-lieu of foreclosure (DIL) allows a mortgagor to voluntarily deed his/her property to MassHousing. Though this option results in a mortgagor losing his/her property, it is usually preferable to foreclosure because it avoids the lengthy and expensive legal foreclosure action, and is generally less damaging to a mortgagor's ability to obtain credit in the future.

We want to work with you in every way possible to avoid the loss of your home. Our experienced loan counselors are available to explain the benefits of the options listed above. Call us today at 888.843.6432 (888.the.MHFA) for further information.

I have a fixed rate account, why did my payment increase?

Even though you have a fixed rate account, your payment may have changed as a result of one or more of the following events:

An escrow analysis
A payment change as a result of a loan modification

Please email HomeOwnership Customer Service or contact us by phone at 888.843.6432 (888.the.MHFA) if you have further questions regarding your payment amount.

Escrow

What is an escrow account?

An escrow account is an account that holds the escrow portion of your monthly payment to pay for property taxes, hazard insurance, flood insurance, condominium fees and mortgage insurance (if applicable) "Escrow Items" as they become due.

Do I need an escrow account?

MassHousing requires that an escrow account be established on all first mortgages that we hold for the payment of your Escrow Items. There may be specific requirements or allowances for cancelling the mortgage insurance, depending on the type of account you have. If you would like more information, contact a HomeOwnership Mortgage Service Center Representative at 888.843.6432 (888.the.MHFA) to review your account.

What is an escrow analysis?

As your servicer, MassHousing must analyze your escrow account each year to determine its status and estimate the funds needed to make escrow disbursements for Escrow Items for the following 12 months. After analyzing the account, we may adjust the escrow portion of your monthly payment in accordance with your mortgage documents, applicable law, and/or government regulations. When we perform an escrow analysis, we send you an escrow account history disclosure statement and a projection statement, which provide you with the details of the analysis.

What may cause my escrow payment to change?

At least once per year, an escrow analysis is performed and recalculates the amount of money needed in your escrow account to pay upcoming Escrow Items when they come due. Increases in Escrow Items may result in an increase in the required escrow payment.

What happens to my Escrow Items after my account is paid in full?

Once the account is paid in full, MassHousing will no longer request or pay bills previously covered by your escrow account. You will be required to pay them yourself, provided you still own the property. MassHousing will send you an escrow account history disclosure statement, which contains escrow activity from the date of the last escrow analysis statement issued through the payoff date. If applicable, you should notify your hazard insurance agent/company, subsequent to paying off your account, that MassHousing is no longer your mortgagee.

I paid off my account. When will I receive my escrow balance?

The remaining balance in your escrow account, if any, will be released within 20 business days after the payoff date. Depending on mail delivery, additional time will elapse before you receive your check. If you are moving, be certain that MassHousing has your correct mailing address.

Real Estate Taxes

When do you pay my real estate taxes?

If your taxes are being paid by MassHousing and an escrow account has been established for this purpose, your taxes are paid prior to the due date established by your taxing authority. However, if your taxing authority offers discounts for earlier payment, that option may be exercised at your request.

Do I need to send my real estate tax bill to MassHousing in order for my taxes to be paid?

In most cases, no, you do not have to send us the bill. MassHousing will obtain and pay the tax amount due for your property. However, an exception would be if your city/town has not yet apportioned your property taxes and assigned an individual parcel number for billing. In this case, you would need to advise MassHousing of the amount of the "parent parcel" real estate tax bill that is to be paid by you. This notice can be provided to the HO Real Estate Tax Department via regular mail, via e-mail to HORETax@masshousing.com or via fax to 617.722.0523. We will then pay your portion of the bill from the funds on deposit in your escrow account. MassHousing will not be responsible for any penalties that may be incurred if you fail to provide us with the notice in a timely manner.

What is a tax abatement and how do I find out if I am eligible for one?

A tax abatement is a reduction of a property tax. It may be based on a reduction in the assessed value of taxable property, or a parcel may be exempted completely from the property tax based on ownership and use. For further information on abatements that may be available to you, contact your city or town tax assessing department.

What do I do if I think the taxes paid figure on my 1098 year end statement is incorrect?

The figure is not reported to the IRS and is for information purposes only. This figure only reflects the taxes disbursed from your escrow account - you may have paid taxes in another manner. Consult with your tax advisor to confirm the amount of taxes paid for the year or contact the city or town in which you live.

Insurance

When do you pay my hazard insurance?

If an escrow account has been established so that MassHousing may pay for your hazard insurance, your premiums will be paid within two weeks of the date MassHousing receives the bill from your insurance carrier, which is typically prior to the due date established by your carrier. Therefore, it is important for you to ensure that MassHousing is listed as the loss payee on your insurance policy, and that your insurance company has been advised to submit all bills to us either by fax at 877.585.8153 or by mail to

MassHousing
PO Box 2111
Carmel, IN 46082

I pay my hazard insurance premium directly to my agent/company. Why does MassHousing need proof of my payment?

As your servicer, MassHousing is obligated to ensure that you maintain hazard insurance in an amount sufficient to protect the interests of your mortgage holder (Mortgagee). In order to do so, you must furnish proof that you maintain, or have reacquired adequate coverage any time your current policy expires or is cancelled for non-payment or non-renewal. Failure to do so on a timely basis may result in MassHousing obtaining lender placed insurance coverage to protect the mortgage holder's interest only, the cost of which will be passed on to you. In the event lender placed insurance coverage is obtained and you do not have complementary coverage, your personal property, equity and other interests will not be protected. For more information, contact a HomeOwnership Insurance Processing Center Representative at 866.962.1926.

I own a condominium unit. What proof of insurance coverage is required by MassHousing?

You must provide MassHousing with a copy of the master or blanket hazard insurance policy as well as all of the necessary schedules, endorsements, statement of values, or other associated documents, and a certificate of insurance showing that the individual unit that secures the mortgage loan is covered under the policy. The policy must cover all of the general and limited common elements that are normally included in coverage. These include fixtures, building service equipment, and common personal property and supplies belonging to the homeowners’ association. The policy also must cover fixtures, equipment, and replacement of improvements and betterment coverage to cover any improvements that have been made inside the individual unit. If the unit interior improvements are not included under the terms of the master or blanket insurance policy, you must obtain and provide an HO-6 policy with coverage, as determined by the insurer, which is sufficient to repair the condo unit to at least its condition prior to a loss claim event. Annually or at the time of policy renewal, you must provide MassHousing with a copy of the master or blanket hazard policy, as well as a certificate of insurance for your individual unit, and a copy of the HO-6 policy, if appropriate, evidencing that the insurance coverage requirements stated above remain in force. For more information, contact a HomeOwnership Insurance Processing Center Representative at 866.962.1926.

What is mortgage insurance (otherwise known as MI, PMI, BPMI, LPMI, or FHA/MIP)?

Mortgage insurance protects the mortgage lender against loss incurred if a borrower defaults. The different terms used are MI or PMI (non-governmental private mortgage insurance issued by independent mortgage insurance companies), or FHA/MIP (mortgage insurance issued by the Federal Housing Administration). Also, you may see the terms BPMI (Borrower Paid Mortgage Insurance) or LPMI (Lender Paid Mortgage Insurance), which are dependent on the type of mortgage and the rates and terms offered.

What are the benefits of mortgage insurance?

Traditional mortgage insurance helps a borrower purchase a home with a downpayment of less than 20% of the purchase price, but after closing does nothing else to help the borrower. Mortgage insurance with MassHousing is different. Borrowers who first applied for a loan with mortgage insurance after July 1, 2004 have mortgage payment protection coverage with their mortgage insurance during the first 10 years of the mortgage term. Mortgage payment protection (MI Plus) can pay a borrower up to 6 months of the principal and interest on the mortgage if they are collecting unemployment benefits from the state. MI Plus is provided by MassHousing at no additional cost to its customers. Learn more about MI Plus.

Can I drop the private mortgage insurance (PMI) premium on my loan?

If your account was originated after July 29, 1999, the Homeowner's Protection Act (HPA) provides cancellation guidelines, which include the following:

Borrowers may request cancellation of PMI when the principal balance of the account has reached 80% Loan-to-Value (LTV) based on either the original amortization schedule or the actual payments, if certain criteria have been met. A written request must be submitted to:

HomeOwnership Mortgage Service Center
Attn: Escrow Department
One Beacon Street
Boston, MA 02108-3110
Lenders must terminate borrower paid PMI at 78% LTV based on the original amortization schedule if the account is current. If neither of the above occurs, the HPA also provides for PMI to be terminated automatically at the midpoint of the loan term.
If a mortgagor and mortgagee (or holder of the mortgage) agree to a modification of the terms or conditions of an account pursuant to a residential mortgage transaction, the cancellation date, termination date, or final termination shall be recalculated to reflect the modified terms and conditions of such loan.

Can I drop the mortgage insurance premium (MIP) on my FHA account?

If your account was originated before January 1, 2001, the MIP may expire on its own based on the terms established at closing. More likely, the MIP is in place for the life of the account. If your account was originated after January 1, 2001, the MIP will most likely expire when the Loan-to-Value (LTV) reaches 78%, or under the following circumstances:

If the term of your account is greater than 15 years, the premium must be paid for 5 years
If the term of your account is less than or equal to 15 years, the minimum premium payment history stated above does not apply

What is Loan-to-value (LTV)?

Loan-to-value is determined by taking the current principal balance of your account and dividing it by the lesser of the original appraised value or the actual purchase price of your home.

Payoff

How do I request a payoff statement on my account?

You can submit a payoff request by any of the methods listed below. The request must include:

MassHousing Account Number
Name(s) of Borrower(s)
Last four digits of Social Security Number
Property Address
The anticipated Payoff Date (Date up to which the Interest amount is calculated through)

Submit a written request via fax to 617.722.0686 or mail to MassHousing, HomeOwnership Mortgage Service Center
Attn: Payoff Department
One Beacon Street
Boston, MA 02108

A mortgagor's signed authorization is required in order for MassHousing to provide a payoff statement to a third party. MassHousing will mail a payoff statement free of charge; however, if the statement is to be provided via facsimile, a $5.00 delivery fee will be added to the total payoff amount. An acknowledgement of the fee is required. This fee is not required for FHA loans.

Once I pay off my account, is there anything else that I need to do?

If you sent the payoff funds to MassHousing, MassHousing will send you a discharge of mortgage within 45 days of the date the payoff was processed. It is then your responsibility to have the discharge recorded at the appropriate registry of deeds. If you refinanced your MassHousing mortgage with another lender and MassHousing receives a request to forward the discharge to the closing attorney, the latter will be responsible for having the discharge recorded.

Year End

What is a 1098 statement?

The IRS requires that by January 31, a 1098 Mortgage Interest Statement be supplied to borrowers who have paid at least $600 in mortgage interest to MassHousing during the previous calendar year. However, MassHousing provides a 1098 to ALL mortgagors, regardless of the amount of interest paid during the tax year. However, if there was no interest paid but Real Estate taxes were paid there would be no 1098 statement sent by MasssHousing. The amount of Real Estate taxes paid can be obtained from the year-end information on the final billing statement for the calendar year or by visiting www.masshousing.com. The interest information is also provided to the IRS. For more details regarding the information provided on Form 1098 view the Instructions for Payer/Borrower on the IRS website (www.irs.gov).

What is a 1099-INT statement?

The IRS requires that by January 31, a 1099-INT Interest Income statement be supplied to borrowers who were paid at least $10 in interest on their escrow account balance during the previous calendar year. This information is also provided to the IRS. For details on the information provided on the Form 1099-INT, view the Recipient Instructions on the IRS website (www.irs.gov).

What do I do if I think the interest paid figure on my 1098 year end statement is too low/high compared to last year?

The IRS may allow you to claim the interest from your payment due on January 1 of the following year if it is paid in the previous calendar year (the year for which you are filing income taxes). Therefore, if you had your mortgage the entire calendar year, it is possible to pay 13 months of interest in one year and 11 months of interest the following year. Please review your records to see if this is the case, or email HomeOwnership Customer Service for more information. We encourage you to check with your tax advisor regarding deductibility of interest.

What do I do if I think the real estate taxes paid figure on my 1098 year end statement is incorrect?

I haven't received my annual 1098 statement or I misplaced it. Could you please send a statement to me?

All statements are mailed by January 31 of the year following the subject tax reporting year. Please verify that we have your correct mailing address and we'll send your statement to you accordingly. You can verify your mailing address at www.masshousing.com/myloan, or by contacting us at 888.843.6432 (888.the.MHFA). Note: Duplicate 1098s should not be ordered before February 11.

Why did I receive multiple 1098 statements for last year?

If at some point during last year the servicing of your account was transferred to MassHousing from another financial institution, you would likely receive a 1098 statement from each institution for the period of time they serviced your account. Or, if at some point during last year you refinanced your account, you would likely receive a 1098 statement for each account.

What information is MassHousing required to report to the IRS?

MassHousing reports the total mortgage interest you paid during a given calendar year, as well as interest of $10 or more paid to you on your escrow account balance, if applicable.

What amounts are income tax deductible? Can I deduct the points I paid?

Unfortunately, MassHousing cannot provide tax advice to customers. Please consult a tax professional regarding the deductibility of mortgage interest and points.

Why haven't you reported the points I paid on my refinance?

IRS regulations provide for mortgage lenders and/or servicers (MassHousing, in your case) to report points on loans made for the purchase of a primary residence only. Consult a tax professional regarding the deductibility of the points you paid for your loan refinance.

MassHousing services my account originated by another lender. Why haven't the points and prepaid interest I paid at closing been reported on the 1098 statement that MassHousing sent to me?

Please contact the original lender as they are responsible for reporting the points and prepaid interest you paid at closing.

Even though there are multiple borrowers on my MassHousing account, the 1098 statement only shows one Social Security Number. Can MassHousing issue a separate 1098 statement for each borrower, splitting the interest between the borrowers?

Unfortunately, the Internal Revenue Service (IRS) only allows MassHousing to report interest under one borrower's name and social security number as the payer of record. Contact your tax professional regarding the allocation of interest amongst all the borrowers.

I received a statement that shows MassHousing paid interest on my escrow account. When do I receive my interest check?

Interest on escrow is automatically paid into your escrow account on an annual basis, consistent with Massachusetts state law, at the end of each December. If the interest paid is $10 or greater, MassHousing will send you a 1099-INT statement by January 31 of each year and report that interest income to the IRS.

Servicemembers Civil Relief Act

What is the Servicemembers Civil Relief Act?

The Servicemembers Civil Relief Act assists those mortgagors who have been called to active military duty, and whose income and ability to pay their debts have therefore been impacted by this activation. The Act requires the interest rate of the account be reduced to 6% during the term of active duty. The difference between the Mortgage Note interest rate and the reduced (6%) interest rate is not deferred; rather it is forgiven. MassHousing absorbs the cost of the interest rate reduction to 6%.

How do I qualify for the Servicemembers Civil Relief Act?

To qualify for the Servicemembers Civil Relief Act, the origination date of your account must be prior to the date your military service begins. You must also satisfy all other terms and conditions prescribed in the Servicemembers Civil Relief Act.

What information does MassHousing need to set me up on the Servicemembers Civil Relief Act?

You must notify MassHousing that you have been called to active duty by calling 888.843.6432 (888.the.MHFA) and/or by mailing a copy of your official orders, including your name, account number, activation period, and start date to

MassHousing
HomeOwnership Mortgage Service Center
One Beacon Street
Boston, MA 02108-3110
Attn: Servicemembers Processing

OR fax a copy of your orders to Servicemembers Processing at 617.722.0692.

Once MassHousing confirms your eligibility, we will issue you a letter outlining the terms and conditions under which the relief is granted.

Does the Servicemembers Civil Relief Act allow me to skip or defer payments?

No. However, if you have difficulties making the payments, we suggest that you speak with one of our Counselors by calling 888.843.6432 (888.the.MHFA).

I don't have my orders yet; what do I do?

You may either contact us at 888.843.6432 (888.the.MHFA) to discuss your situation, or you can mail or fax us the information you have. We will review the documentation you provide to us upon receipt to see if it is sufficient or you can send us your orders when you receive them. If you mail or fax your documentation, be sure to include a cover letter with your name, account number, activation period, and start date and send to

MassHousing
HomeOwnership Mortgage Service Center
One Beacon Street
Boston, MA 02108-3110
Attn: Servicemembers Processing

OR FAX a copy of your orders to:
Servicemembers Processing at 617.722.0692

When will the reduced payment be effective?

Your reduced payment begins the month following the date your active duty begins. For example, if your active duty begins September 16, your reduced payment becomes effective October 1.

What should I do when I'm no longer on active duty?

As stated above, the Servicemembers Civil Relief Act only provides relief during the term of a borrower's active duty. Therefore, if you are deactivated early, you must contact MassHousing. Otherwise, your monthly payment will be increased beginning with the second monthly payment due after your active duty ends, according to the orders you originally submitted to MassHousing.