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VI. SERVICING A. DLOS During FY 1997 RHS and Rural Development moved routine servicing to a computerized center in St. Louis. Local Rural Development offices will intervene only in problem cases requiring direct contact. Handbook 2 of Part 3550, "Direct Single Family Housing Loans and Grants Centralized Servicing Center Handbook," describes how the new system (Dedicated Loan Origination and Servicing System, or DLOS) operates. An excerpt from the Field Office Handbook about escrow, taxes, and insurance is in Appendix 7 of this guide; Form 3550-15, "Tax Information," is in Appendix 8; and RHS’s insurance policy requirements are in Appendix 9. B. Fees and Reviews Borrowers 15 days late in making payments are assessed a late fee (4 percent of the principal and interest due). If borrowers pay cash, they must include an additional amount necessary to convert their cash payment to a money order. The servicing handbook’s text on annual and interim reviews of payment subsidies is included in Appendix 22 of this guide.
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