General servicing actions
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
Whenever any of the servicing actions described in this subpart result in reamortization of the account RHS may:
(a) Require a borrower who currently makes annual payments, but receives a monthly income, to convert to monthly payments.
(b) Require the creation and funding of an escrow account for real estate taxes and insurance, if one does not already exist for any borrower with monthly payments.
(c) Convert the method of calculating interest for any account being charged daily simple interest to an amortized payment schedule.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.