761 CMR, § 22.32

Current through Register 1538, January 3, 2025

Section 22.32 - Mortgage Accounting Records

Permanent mortgage accounting records shall be maintained for each Loan Participation. The records must indicate MHMFA's interest in each Mortgage Loan and contain the Loan Participation Number assigned by MHMFA.

For purposes of reporting to MHMFA, Servicer's accounting system must be capable of producing for each Mortgage Loan, as of the 30th day of the month, an account transcript itemizing:

(a) the date and amounts of principal and interest collected,

(b) the date to which interest is paid, and the accrued interest due on each Mortgage Loan to the 30th day of each month, and

(c) the date, amount and nature of each disbursement, advance, adjustment or other transaction affecting the amounts due from or to the Borrower, including the then current outstanding principal balance, and current escrow balance for each Mortgage Loan. The system must provide for immediate disclosure of any escrow deficiency.

The accounts and records relating to Loan Participations shall be maintained in accordance with sound and generally accepted accounting practices, and in such a manner as will permit the representatives or designees of MHMFA, at any time during business hours, to examine and audit such documents and records.

761 CMR, § 22.32