NIFA's network of approved Participating Lenders will process and close first mortgage loans in their name and will execute an assignment to the Master Servicer. If the homeowner received down payment and closing cost assistance from NIFA, the approved Participating Lender will process and close the second mortgage loan in our name. First and second mortgage loans meeting all requirements will be purchased from the Participating Lender and will be serviced by the Master Servicer.
The Master Servicer is U.S. Bank for mortgage loans closed on and after June 1, 2005. The Master Servicer is Wells Fargo for loans closed prior to June 1, 2005.
The Participating Lender is responsible for collecting loan payments on the first mortgage loan and second mortgage loan (if applicable) until both loans are purchased by the Master Servicer. Once purchase has occurred, the homeowner will receive a welcome packet from the Master Servicer providing payment and other instructions.
NIFA loans do not have any prepayment penalties. All first mortgage loan and second mortgage loan (if applicable) payoff quotes are provided by the Master Servicer. The Master Servicer prepares all releases for execution and sends them to the register of deeds office for recording.
NIFA first mortgage loans may be assumable subject to certain requirements. NIFA's first-time homebuyer, maximum household income limits and maximum purchase price limits apply. Certain credit underwriting requirements also apply. The Master Servicer has the authority to approve loan assumption requests.
Please note NIFA second mortgage loans are not assumable and must be paid in full prior to closing an assumption request.
Homeowners that are delinquent with mortgage payments should work closely with the Master Servicer to determine all options available to bring the loan current. If bringing the loan current is not an option, selling the home may be the next step. NIFA is only involved with a short sale process when the homeowner received a second mortgage loan for down payment and closing cost assistance. The NIFA contact person for short sales with a second mortgage loan is Jacki Young.