Agency repurchase. (1) The lender’s servicing fee will stop on the date that interest was last paid by the borrower when the Agency purchases the guar- anteed portion of the loan from a hold- er. The lender cannot charge such serv- icing fee to the Agency and must apply all loan payments and collateral pro- ceeds received to the guaranteed and unguaranteed portions of the loan on a pro rata basis.
Agency repurchase. (1) If the lender does not repurchase as provided in paragraph (a) of this section, the Agen- cy will purchase from the holder the unpaid principal balance of the xxxxxx- xxxx portion together with accrued in- terest to date of repurchase (less the lender’s servicing fee) within 30 days after a specific written demand di- rected to the Agency. The copy of the demand on the lender is not sufficient. The guarantee will not cover the note interest to the holder on the xxxxxx- xxxx loan accruing after 90 days from the date of the original demand letter. The lender shall not charge the Agency any servicing fees nor are any such fees collectible from the Agency.
