367.320 Processing of payments by servicer of high-cost home loan.
338 words·~2 min read·
/ky/chapter-367/367-320A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)As used in this section, "servicer" means any person or entity who currently collects
or processes payments on a high-cost home loan, as that term is defined in KRS
360.100, regardless of whether that person or entity is the owner, the holder, the
assignee, the nominee for the loan, the beneficiary of a trust, or any person acting on
behalf of such person.
(2)A servicer shall:
(a)Apply payments promptly upon receipt, so long as the residential mortgage
loan is still being actively processed. If a payment is received on a Saturday, a
Sunday, or any day when the servicer's principal place of business is not open
or after 1 p.m. on a business day, it shall be considered promptly applied if
applied on the next regular business day;
(b)Apply payments first to interest and principal currently due, then to late fees
currently due, then to other fees and charges currently due, and then to
additional principal, as applicable;
(c)Assess any fee which is otherwise legal under this section within thirty
days of the date on which the fee was accrued and disclose any assessed fee
clearly and conspicuously in the next periodic statement provided to the
borrower;
(d)Charge no late fee, if a payment is otherwise a full payment for the applicable
period and is paid on its due date or within an applicable grace period, and the
only delinquency or insufficiency of payment is attributable to any late fee or
delinquency charge assessed on any earlier payment; and
(e)Make all payments from the escrow account held for the borrower for
insurance, taxes, and other charges with respect to the property in a timely
manner so as to ensure that no late penalties are assessed or other negative
consequences result, regardless of whether the loan is delinquent unless there
are not sufficient funds in the account to cover the payments, and disclose any
payments from the escrow account clearly and conspicuously in the next
periodic statement provided to the borrower.