We have what is referred to as a forbearance partial payment plan - the borrower has an agreement to pay less than the contracted amount. These are set up as a payment plan in the loan servicing system. For the monthly mortgage statement, when the borrower makes a partial payment (the payment plan), it shows up as a "Partial Payment (Unapplied)" in the "Explanation of Amount Due" section; however, it does not show up on the "Past Payment Breakdown" section. 1026.41(d)(3) indicates that unapplied funds should be reflected in the section there. When asking why the partial payments were not shown as unapplied in the "Past Payment Breakdown" on the statement, I was informed because it was being applied to the payment plan even though the Explanation of Amount Due shows the amount as a Partial Payment (Unapplied).

For example, a borrower commited to paying $300 a month for 6 months (the regular payment is $1000). The borrower makes a $300 partial payment and it is shown in the transaction activity (as a partial payment received) and as a Partial Payment (Unapplied) in the Explanation of Amount Due section. It does not show up as an unapplied in the Past Payment Breakdown for any of the months they paid the $300 (it shows up as all $0s in the "Paid Last Month" column.

I feel as though the amounts should be showing up in the Past Payment Breakdown section; however, wanted to reach out before I take it further.

Thanks!

4. Temporary loss mitigation programs. If the consumer has agreed to a temporary loss mitigation program, the disclosures required by § 1026.41(d)(2), (3), and (5) regarding how payments were and will be applied must identify how payments are applied according to the loan contract, regardless of the temporary loss mitigation program.