01/11/2021: Annual FHA Prepayment Disclosure Notice for Retained Servicing Loans Included with Year End Statement

Retained servicing customers with FHA loans may receive a Prepayment Disclosure Statement nested with the mailing of their year-end statement.

Some customers interpret this statement as a demand to pay the loan in full.  

  • This statement is a required annual notification and is provided for informational purposes only
  • This statement is not a demand for customers to pay their loan in full

The verbiage contained in the FHA Prepayment Disclosure Notice is shown below:

Customer Name(s)                                                                                                     Date:

Mailing Address

Mailing City, State, Zip Code

Prepayment Disclosure Statement: Annual Disclosure Notice to Borrower for Mortgages Insured on or after August 2, 1985, and Closed Before January 21, 2015

Loan Number:                                     FHA #:                         

This notice is to advise you of requirements that must be followed to prepay your mortgage. This notice is also to advise you of requirements you must fulfill upon the prepayment of your mortgage to prevent the accrual of any interest after the date you prepay your mortgage.

The amount reflected below is the amount outstanding on the loan for prepayment of the indebtedness due under your mortgage. This amount is good through <date>.

The amount provided is subject to further accounting adjustments. Also, any corporate advances made by us or payments received from you before the stated expiration date on this notice will change your prepayment amount.

The amount below reflects the amount outstanding under the mortgage, including principal, interest, penalties, late charges, advances, any other charges related to the loan, and any foreclosure or bankruptcy expenses incurred to date under the mortgage.

$(Balance Due)

You may prepay your mortgage at any time without penalty. However, in order to avoid the accrual of interest on any prepayment after the date of prepayment, the prepayment must be received on the installment due date (the first day of the month). Otherwise, you may be required to pay interest on the amount pre-paid through the end of the month.

If you have any questions regarding this notice, please contact our Customer Experience Department by calling toll-free (877) 297-5350 from 8:30 a.m – 5:00 p.m. Central Time Monday through Friday.


Fairway Independent Mortgage Corporation

A copy of this notification will be viewable in the Document Management System (DMS).