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

Steve - You won't find much help in the Federal Register, anyhow. This is really a state law issue. Another source of information might be FHLMC or FNMA if you sell mortgage loans to them.

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.

This may also be defined in the contracts themselves, which should be in accordance with the law.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.