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 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, 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 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 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. You may also obtain information on our Refinance Program at www.masshousing.com/refinance.

Payments

Can I change my payment due date?

No, we are unable 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 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?

We would prefer that you make a payment online www.masshousing.com/connect or over the phone by calling 888.843.6432 as our staff are working remotely. However, MassHousing will accept payments delivered to its offices at One Beacon Street, Concourse Level, Boston, MA, Monday through Thursday 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. Please call 888.843.6432 to set up this service or self serve online at www.masshousing.com/connect.

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 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. To avoid negative credit reporting, please ensure your payment is received within the month it is due; a payment not made within the month it is due will be reported as past due to the Credit Bureaus.

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. 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 that allows for reduced payments with the expectation that the account will be reinstated at the end of the plan or qualify for another option to bring your account current.
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.
Payment Deferral/Partial Claim - (FHA Only) A payment deferral/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). You will be responsible for paying past due amounts upon the current maturity date or upon sale or transfer of the property, refinance of the mortgage or payoff of the interest-bearing principal. This workout option is only offered when a mortgagor does not have the ability to repay the delinquency through a repayment plan, and the current mortgage payment is affordable.
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.
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 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 increase in the amount of real estate taxes or your hazard insurance premium
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 if you have further questions regarding your payment amount.

Escrow

What is an escrow account?

An escrow account is an account used to hold the escrow portion of your monthly mortgage payment. The funds are used to pay eligible escrow expenses, such as, property taxes, hazard insurance, flood insurance, and mortgage insurance (if applicable), as they become due. These expenses are referred to as "Escrow Items."

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 to review your account.

What is an escrow analysis?

MassHousing analyzes your escrow account at least once each year to determine whether the funds in the account are sufficient to pay your Escrow Items over the next 12 months. Based on this analysis, we may adjust the escrow portion of your monthly payment in accordance with your mortgage documents, applicable law, and/or government regulations. After each escrow analysis, we send you an escrow account history disclosure statement that includes your account history and a projection of anticipated escrow activity for the upcoming 12-month period. This statement explains the results of the analysis and any changes to your monthly escrow payment. In addition to the annual analysis, we may perform an escrow analysis at any time during the year if an unexpected escrow disbursement is made or other changes occur that affect your escrow account.

What may cause my escrow payment to change?

Your escrow payment may Increase if the cost of your Escrow Items increases. This can occur if your real estate taxes and hazard insurance premiums increase, or an unexpected escrow disbursement is made from your escrow account. When these changes occur, your required monthly escrow payment may be adjusted to ensure there are sufficient funds available to pay future Escrow Items as they become due.

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 may elapse before you receive your check. If you are moving, be certain that MassHousing has your new 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.

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 in the amount of a real property tax. It may be based on a reduction of the assessed value of taxable property, or a property may be exempted completely from 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 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 agent or carrier update the billing to Direct Bill to MassHousing. Please send the Declarations Page to our insurance tracker using one of the following methods:

Upload it to www.myinsuranceinfo.com
Email a copy to docsend@fmq.alliedsolutions.net with "4458" in the subject line. Please do not paste an image into the body of the email or password protect the document.
Email a copy to HOInsurance@masshousing.com
Mail a copy 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 800.653.8812.

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

An HOA master insurance policy is required for a condominium association to protect the shared physical structure, including the building, roof, hallways, elevators and common areas. The policy must provide coverage for all general and limited common elements that are customarily included in the association’s coverage. These elements include fixtures, building service equipment, common personal property, and supplies owned by the HOA. In addition, the policy must provide coverage for fixtures, equipment, and improvements and betterments within individual units. If interior improvements are not included under the terms of the master 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 HO-6 policy. For more information, contact a HomeOwnership Insurance Processing Center Representative at 800.653.8812.

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 down payment 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 with employment income who first applied for a loan with mortgage insurance after July 1, 2004 have mortgage payment protection coverage for the life of the policy. 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:
HOPMI@masshousing.com or via regular mail to HomeOwnership Mortgage Service Center Attn: Escrow Department One Beacon Street Boston, MA 02108-3110 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?

No. Mortgage insurance cannot be removed on FHA insured mortgages with MassHousing. The only way to remove it is by refinancing into a conventional mortgage.

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 but no later than 30 days from today’s date)

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.

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

MassHousing will collect a Mortgage Discharge fee when a payoff quote is provided and MassHousing will record the discharge of mortgage within 45 days of the date the payoff was processed.

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 MassHousing. 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/connect. 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 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 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/connect, or by contacting us at 888.843.6432. 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?

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 on the account to be reduced to 6% during the term of active duty if it is higher than 6%. 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 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.

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

You may either contact us at 888.843.6432 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.