Escrow Payments

Servicer shall collectEscrowPaymentsto the maximum extent permitted (except that the collection of Escrow Payments for hazard insurance premiums is not required) by the Real Estate Settlement Procedures Act, as amended, along with the monthly installment of interest and principal. The Escrow Payment shall be held in trust for the benefit of the Borrower, Seller and MHMFA in an account with a Mortgage Lender (which may be the Servicer) insured to the fullest extent legally possible. Servicer shall from time to time obtain bills for all escrow expenses and will effect payment thereof prior to the applicable penalty or termination date. Servicer shall maintain adequate records of proof of payments of all taxes, insurance premiums and other escrow expenses. Servicer shall at least annually compute the required Escrow Payments on the basis of assessments and bills and reasonable installments of Escrow Payments payable prior to the due dates of taxes and other escrow expenses exceeds the amount required to pay such charges as theyfalldue, the excess shall be either promptly repaid to Borrower (if there is no default under the terms of the Mortgage Loan) or credited to Borrower against monthly installments of Escrow Payments. Any interest payable to Borrower for Escrow Payments or any other funds held by Servicer, whether due to contractual agreement or operation of law, shall be paid by Servicer, at Servicer's sole expense. When Escrow Payments collected from Borrower are insufficient to pay taxes and other escrow expenses when due, Servicer should attempt to obtain the necessary additional deposit fromBorrower before the latest date onwhichsuch items may be paid prior to charge, lapse of insurance policies or other penalty. If Borrower fails to remit the amount of deficiency or if there is insufficient time to obtain such amount, Servicer shall pay from its own funds any items when and to the extent necessary to protect MHMFA's interest, and should reflect a deficit balance in Borrower's escrow account. (See 761 CMR 21.18.) Whenever Servicer shall have made advances, with respect to any Mortgage Loan to pay taxes, and other escrow expenses such advances shall be a lien on the mortgaged property added to the amount of the Mortgage Loan and payable upon demand with interest (at the rate applicable under the Mortgage Loan) from the time of payment of the same and secured by the mortgage lien and if not paid by Borrower shall be reimbursed our of the proceeds of foreclosure, assignment, judgment or other final disposition of the Mortgage Loan.