#890 - 03/12/0108:11 PMapplication of loan payments
I need some guidance as to how to find out what a bank's obligation is in applying loan payments (i.e. the order in which payments must be applied, the ability or inability to process partial payments, etc.) This specifically is for amortizing residentail mortgage loans but also for simple interest consumer loans as well. Any help in terms of Federal Register citations would be appreciated--their "help" site is too complicated for me---thanks in advance
#892 - 03/12/0109:01 PMRe: application of loan payments
If you are talking about how payments are applied in terms of principle, interest, etc.; Regulation AA requires payments to be applied to required amounts first (prin, int, escrow, etc.) before any amount can be applied to accrued late charges.