6.3.10 Mortgage Servicing Accounts (MSA)
Mortgage Servicing Accounts are deposit accounts opened by Mortgage Servicers to hold payments made by Mortgagors. To this extent, the Principal and Interest portion of the Mortgage Servicing Payments are covered under this right and capacity. The amounts held for payments of taxes and insurance premiums, on the other hand, are not covered in MSA ORC and are treated in the Single ORC classification for the Mortgage Servicer.
Overfunding amounts are computed by the application by taking into consideration the Total Allocation Percentage of all the mortgagors concerning a Mortgage Servicer. If the Total Percentage is less than 100%, it is determined that there is Overfunding in the deposit account. This amount does not belong to any participant and instead belongs to the Mortgage Servicer. Overfunding Amounts are also treated under MSA ORC and allotted a separate SMDIA as compared to the Principal and Interest Amounts.