Arrearages (applicable to Servicing of forward Mortgages only)

Arrearages (applicable to Servicing of forward Mortgages only)

Arrearages refer to amounts needed to bring the Mortgage current and must only include: • for Repayment Plans, Standalone Partial Claims, and Payment Supplements, principal amounts that are past due; • unpaid accrued interest; • Mortgage advances for escrow items; • projected escrow shortage amount; and • allowable legal fees and foreclosure and bankruptcy costs for work performed for the current Default episode as of the date of the foreclosure cancellation and not higher than the fees and costs HUD has identified as customary and reasonable.