Is there any flexibility to reporting a customer as current when they partially make a payment due to them not paying attention to notices regarding payment changes due to escrow or ARM changes? I assume not if the legal obligation is not met. I am just looking for any options we have.

Uniform Retail Credit Classification and Account Management Policy

Partial Payments on Open-and Closed-End Credit

Institutions should use one of two methods to recognize partial payments. A payment equivalent to 90 percent or more of the contractual payment may be considered a full payment in computing past due status. Alternatively, the institution may aggregate payments and give credit for any partial payment received. For example, if a regular installment payment is $300 and the borrower makes payments of only $150 per month for a six-month period, the loan would be $900 ($150 shortage times six payments), or three full months past due. An institution may use either or both methods in its portfolio, but may not use both methods simultaneously with a single loan.