24 Code of Federal Regulations §203.558
Amended by 79 Federal Register 50835-50838
Effective date: Runs from the mortgage closing date
Borrowers of single family mortgages insured by the Federal Housing Administration (FHA) which closed on or after January 21, 2015 are not subject to interest charges after the date they prepay their mortgages. Borrowers do not need to provide the servicer a 30 days’ notice of prepayment.
Borrowers of mortgages which were insured by the FHA before August 2, 1985 and closed before January 21, 2015 may be required by their servicer to provide 30 days’ notice of prepayment. Further, borrowers may have their prepayment refused by their servicer until the next installment due date following expiration of the notice period.
Borrowers of mortgages which were insured by the FHA on or after August 2, 1985 and closed before January 21, 2015 are not required to provide 30 days’ notice of prepayment, but their servicer may reject the borrower’s prepayment or charge prepayment interest.
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