Can a mortgage payment be included in a debt management plan? If so, how is the fee the licensee may collect calculated?
A mortgage payment may be included in a debt management plan as any financial obligation of a debtor, whether delinquent or current. However, a fee may only be charged and collected if the mortgage is satisfied in full during the contract liquidation period. The fee shall be calculated on the outstanding principal balance of the mortgage at the time the contract is executed as the Act prohibits the fee from including mortgage or land contract interest charges in the calculation of a licensee’s fees. An amortization schedule should be utilized to determine the principal amount to be included in the monthly fee calculation.
