DocMagic Default Late Fees

Here are DocMagic Default Late Fees for the following loan types. Please note that some investors and lenders may have different default late fees than those set forth below.

First and Junior Lien (Closed-End) Transactions

First Lien: 5% and 15 days; Junior Lien: 5% and 10 days. Per the Fannie Mae Selling Guide, IV, 201.01: Late Charge Provision (04/11/00), "[t]he note for a conventional first mortgage must provide for the borrower to pay a 5% late charge on any installment that is not received by the 15th day after it is due." Accordingly, these are the default values unless there is a more restrictive state requirement. (See matrix for details)

Junior Liens: 5% and 10 days. These are the default values unless there is a more restrictive state requirement. (See matrix for details)

HELOC (Open-End) Transactions

HELOCs: 5% and 10 days. These are the default values unless there is a more restrictive state requirement. (See matrix for details)

FHA/VA Transactions FHA Loans: 4% of the late payment, after 15 days.1 Pursuant to 24 CFR § 203.25, "[t]he mortgage may provide for the collection by the mortgagee of a late charge, not to exceed four (4) percent of the amount of each payment more than 15 days in arrears." HUD states that in all cases, the late charge stated in the note or security instrument shall prevail unless it exceeds four percent.2
VA Loans: 4% of the late payment, after 15 days.1 Pursuant to 38 CFR § 36.4311(c), "[a] late charge not in excess of an amount equal to four (4) percent on any installment paid more than 15 days after due date shall not be considered a violation of this limitation."

If you have any questions regarding any of the information relating to DocMagic Default Late Fees, please contact DocMagic at (800) 649-1362 or customerservice@docmagic.com.

1 With respect to Massachusetts, the late charge will be 3% of the late payment, after 15 days (MA ST 183 § 59).
2 See HUD Handbook 4330.1 Rev-5, Paragraph 4-2; The late charge for New York FHA loans will be 4% because FHA is exempt from compliance with New York's late charge law (NY Real Prop § 254-b(2)).