Early Payment Default (EPD Clause Samples

An Early Payment Default (EPD) clause defines the consequences and procedures if a borrower fails to make timely payments soon after a loan is originated, typically within the first few months. This clause often applies to mortgage or commercial loans and may trigger repurchase obligations, increased scrutiny, or penalties for the lender or originator if the borrower defaults early. Its core function is to protect lenders and investors from the heightened risk associated with loans that default shortly after being issued, signaling potential issues with loan quality or underwriting practices.
Early Payment Default (EPD. Mortgages (5/1/19)68‌ The QC review of each Conventional Mortgage Loan that reaches EPD status is required, even if the Mortgage Loan has subsequently been brought current. The QC review must be initiated by the PFI or Servicer within sixty (60) calendar days after the date the Mortgage Loan reaches EPD status. The scope of all EPD QC reviews must include reverification of income and employment, sources of funds and credit reports. A review Appraisal, in the form of a new Appraisal or field inspection, or a review of the property value used to obtain an Appraisal Waiver offer if an Appraisal Waiver was use, must also be conducted in accordance with the Guides. 67 MPF Announcement 2017-13 (3/28/17) 68 MPF Announcement 2017-13 (3/28/17) MPF Announcement 2019-26 (5/1/19)
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Early Payment Default (EPD. Mortgages‌ The QC review of each Conventional Mortgage Loan that reaches EPD status is required, even if the Mortgage Loan has subsequently been brought current. The QC review must be initiated by the PFI or Servicer within sixty (60) calendar days after the date the Mortgage Loan reaches EPD status. The scope of all EPD reviews must include reverification of income and employment, sources of funds and credit reports. A review Appraisal, in the form of a new Appraisal or field inspection, must also be conducted in accordance with the Guides. EPD review reports must be submitted annually, rather than individually upon completion (except for EPD Mortgages Loans that are High Level Concern (HLC) Mortgage Loans subject to the requirements of Servicing Guide). All of the EPD review reports completed in the calendar year must be submitted annually to the MPF Bank as part of the Annual Eligibility Certification.
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Early Payment Default (EPD. In the event the Borrower(s) of a Mortgage Loan originated by ▇▇▇▇▇▇ shall be deemed an Early Payment Default, ▇▇▇▇▇▇ agrees to pay to Lender an amount equal to all compensation paid to Broker on the loan transaction from any source. A loan is deemed to be an Early Payment Default if any of the first six (6) payments due under the mortgage note become more than 60 days contractually past due.
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Related to Early Payment Default (EPD

  • Other Payment Default The Borrower shall default in the payment when and as due (whether at maturity, by reason of acceleration or otherwise) of interest on any Loan or Reimbursement Obligation or the payment of any other Obligation, and such default shall continue for a period of three (3) Business Days.

  • Payment Default Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day grace period shall not apply to payments due on the Maturity Date or the date of acceleration pursuant to Section 9.1 (a) hereof). During the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period);

  • Payment Defaults Tenant shall fail to pay any installment of Rent or any other payment hereunder when due; provided, however, that Landlord will give Tenant notice and an opportunity to cure any failure to pay Rent within 3 days of any such notice not more than once in any 12 month period and Tenant agrees that such notice shall be in lieu of and not in addition to, or shall be deemed to be, any notice required by law.

  • No Payment Default Except for payment delinquencies that have been continuing for a period of not more than 29 days, no payment default under the terms of any Receivable exists as of the Cutoff Date.

  • Post-Default Interest The Borrower shall pay interest on all Obligations (other than any Administrative Expenses) that are not paid when due for the period from the due date thereof until the date the same is paid in full at the Post-Default Rate. Interest payable at the Post-Default Rate shall be payable on each Payment Date in accordance with the Priority of Payments.