How does the activation of the Modification Commitment/Certificate affect the premium?
All premium plans require payment of the .50% to activate the modification. The process varies by premium type: • ZOMP! – If premium on the Original Loan has been prepaid (paid in advance), a premium adjustment will be returned to you. If premium on the Original Loan is due, you will be billed through the month in which the Refinance Loan closed. The Modification Commitment/Certificate will show the premium schedule under which you will be billed monthly for the Refinance Loan. • Standard Monthlies – If premium on the Original Loan has been prepaid, a premium adjustment will be returned to you. If premium on the Original Loan is due, you will be billed through the month in which the Refinance Loan closed. The Modification Commitment/Certificate will show the premium due at closing and the premium schedule under which you will be billed monthly for the Refinance Loan. • Annual premiums – A premium adjustment will be returned to you for that portion of the prepaid annual premium that cov
