application of loan payments

Posted By: Anonymous

application of loan payments - 03/12/01 08:11 PM

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
Posted By: John Burnett

Re: application of loan payments - 03/12/01 08:15 PM

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.
Posted By: Anonymous

Re: application of loan payments - 03/12/01 09:01 PM

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.
Posted By: Andy_Z

Re: application of loan payments - 03/14/01 05:37 AM

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

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