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#2130669 - 05/16/17 07:00 PM Number of Days Late
lucyc Offline
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lucyc
Joined: Jul 2007
Posts: 1,074
Currently our residential loans and home equity lines of credit state that if payment is over 15 days late a late fee of 5% of principal and interest will be charged. Our home equity loans state that if payment is over 10 days late a late fee of 5% of principal and interest will be charged.

Is there a regulatory reason or statute requirement as to why there is a difference in the number of days late? Can they all be changed to 15 days?

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#2130827 - 05/17/17 07:20 PM Re: Number of Days Late lucyc
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Joined: Jan 2017
Posts: 214
Usually there is difference to due to state and Fannie Mae guidance. A conventional loan that is originated following Fannie Mae guidelines would have 15 day grace period with late fee of 5% of the principal interest (https://www.fanniemae.com/content/guide/selling/b8/3/02.html). All other loans usually follow state law.

At my former employer we had mortgages with differing grace periods that were inherited through mergers. A decision was made to give all mortgages a 15 grace period. A letter was sent to advise the borrowers.

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#2132356 - 05/30/17 05:27 PM Re: Number of Days Late lucyc
lucyc Offline
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lucyc
Joined: Jul 2007
Posts: 1,074
Thank you.

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