Servicing Information

NIFA has a network of Participating Lenders who originate, process and close mortgage loans on our behalf.  All first mortgage loans will be closed in the name of the originating lender and transferred to our Master Servicer for servicing.

NIFA loans are serviced by two different companies.  U.S. Bank - HFA Division in Bedford, Ohio is the current Master Servicer for all loans that closed June 1, 2005 and after.  Wells Fargo is the Master Servicer for all loans that closed prior to June 1, 2005.  If your client does not remember when they closed their loan, their Master Servicer is who they make their monthly payments to and the contact information will be included on their monthly statements.

Below are some details about loan servicing for NIFA borrowers.

First Payment Letter

Borrowers should receive a First Payment Letter at loan closing that provides instructions on making their first payment for their first mortgage loan and HBA second mortgage loan, if applicable.  Until they receive a Welcome Packet from U.S. Bank, their monthly payments are to be made to the originating lender.

Once they receive the Welcome Packet from U.S. Bank, all subsequent payments will be made to them.

Hazard and Flood Insurance

Homeowners insurance is required during the life of the loan.  Flood insurance may be required depending on the findings indicated on the Flood Certificate received by the originating lender.  Insurance policies are to be for an amount that must equal the lower of the:

  • Loan amount
  • Replacement cost of the insurable improvements, or
  • Maximum amount of coverage sold under applicable program of the NFIB for the type of improvements

The borrower should contact the respective Servicer to obtain more information on insurance requirements.

Payoffs/Satisfaction Requests

All payoff quotes are provided by the Servicer.  This includes HBA second mortgage loans.  Contact information is provided on the borrower's monthly mortgage statement.

There is no prepayment penalty on any NIFA loan, whether it is a first mortgage loan or a HBA second mortgage loan.  Borrowers can pay off their loans at any time without penalty.

All payoff proceeds are to be overnighted to the respective Servicer at the mailing address listed on the payoff quote.  Any funds due to NIFA for a second mortgage loan will be subsequently forwarded to NIFA by the Servicer.


All NIFA first mortgage loans are assumable subject to certain requirements.  The current borrower (homeowner) can order an assumption packet from their respective Servicer.  The new Borrower will need to meet all NIFA requirements and applicable credit underwriting requirements in order to qualify for the assumption.

HBA second mortgage loans are not assumable and must be paid in full prior to or at the time of the assumption.

Short Sales

NIFA borrowers must work with their respective Servicer if they would like to sell their home via short sale.  There are specific guidelines and timeframes that must be followed and the Servicer will work closely with the homeowner to work through the process.  If NIFA provided down payment assistance funds, then we will also be included in the short sale approval process.

If you are working with a homeowner who is selling their home via short sale, contact Jacki Young in NIFA's Homeownership Department at 402-434-3900 or as early in the process as possible to receive the list of documentation required for the request to be processed.


Once your client has paid off their NIFA loan, the Servicer will prepare a release to be recorded.  Releases for first mortgage loans are executed by the Servicer.  Releases for second mortgage loans provided by NIFA will be prepared by the Servicer and sent to NIFA for execution prior to recording.