Your payment must be credited the day it arrives
12 C.F.R. § 1026.36(c)(1)(i)
In plain words
When your servicer gets a full monthly payment (principal, interest and escrow), it must credit it to your loan as of the day it is received. It cannot hold your payment and then charge you a late fee or report you late because of its own delay.
Who is protected
Consumers with a closed-end loan secured by their principal dwelling.
When it applies
- Only if the home is your primary residence.
- Partial payments may be held in a suspense account; the servicer must tell you on your statement.
What you can do
Dispute a late fee caused by slow crediting
Gather proof of when the payment arrived (bank record, tracking). Send a notice of error asking the servicer to credit the right date and remove fees.
Open the tool
Honest limits
- It covers full periodic payments. A partial payment can be held until enough money builds up to make a full payment.
- Payments must follow the servicer's written payment instructions; if they do not, crediting may take up to 5 days.
- This is general legal information, not legal advice, and it does not promise any result. A HUD-approved housing counselor or a lawyer can look at your facts.
The law
- Federal regulationTILA / Regulation Z — crediting periodic payments
12 C.F.R. § 1026.36(c)(1)(i)
Exact part: (c)(1)(i)
What it says: A servicer must credit a periodic payment as of the date of receipt, unless a delay causes no charge or negative credit reporting.
Read the official texthttps://www.ecfr.gov/current/title-12/part-1026/section-1026.36#p-1026.36(c)(1)(i) - Federal lawTILA — prompt crediting of home loan payments
15 U.S.C. § 1639f(a)
Exact part: (a)
What it says: No servicer may fail to credit a payment on a principal-dwelling loan as of the date of receipt.
Read the official texthttps://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1639f&num=0&edition=prelim
Court cases
- Homeowner wonSame topicRenfroe v. Nationstar Mortgage, LLC
Renfroe v. Nationstar Mortg., LLC, 822 F.3d 1241 (11th Cir. 2016)
a servicer that answers a borrower's written request without a reasonable investigation may be liable under RESPA when the borrower alleges resulting damages
- Homeowner wonSame topicJesinoski v. Countrywide Home Loans, Inc.
Jesinoski v. Countrywide Home Loans, Inc., 574 U.S. 259 (2015)
a borrower exercises the Truth in Lending right to rescind by notifying the lender in writing within three years, without needing to sue within that period
- Homeowner wonSame topicMarais v. Chase Home Finance LLC
Marais v. Chase Home Fin. LLC, 736 F.3d 711 (6th Cir. 2013)
a borrower who alleges actual damages, such as added interest, caused by a servicer's deficient response to a qualified written request states a RESPA claim
- Homeowner lostSame topicLage v. Ocwen Loan Servicing LLC
Lage v. Ocwen Loan Servicing LLC, 839 F.3d 1003 (11th Cir. 2016)
a servicer's duty to evaluate a loss-mitigation application depends on its being submitted more than 37 days before the sale date scheduled at that time
- Homeowner lostSame topicGresham v. Wells Fargo Bank, N.A.
Gresham v. Wells Fargo Bank, N.A., 642 F. App'x 355 (5th Cir. 2016) (per curiam) (unpublished)
the federal dual-tracking bar applies only when the servicer receives a complete loss-mitigation application more than 37 days before the foreclosure sale
- Homeowner lostSame topicWhittier v. Ocwen Loan Servicing, L.L.C.
Whittier v. Ocwen Loan Servicing, L.L.C., 594 F. App'x 833 (5th Cir. 2014) (per curiam) (unpublished)
a RESPA claim against a servicer fails without evidence of actual damages caused by the violation
Related rights
A clear mortgage statement every billing cycle
12 C.F.R. § 1026.41(a)(2)
Your servicer must send you a statement for each billing cycle (usually monthly). It must show the amount due and due date, how your last payments were applied, fees charged, and contact information. If you are behind, it must also show how far behind you are and where to get housing counseling.
Read this rightMake your servicer fix mistakes (notice of error)
12 C.F.R. § 1024.35(a)
If your mortgage servicer made a mistake — like not crediting a payment, charging a wrong fee, or giving a wrong payoff amount — you can send a written "notice of error." The servicer must confirm it got your letter within 5 business days. It then has to fix the error or explain in writing, after a reasonable investigation, why it thinks there was no error, usually within 30 business days.
Read this rightNo discrimination in housing or home loans (Fair Housing Act)
42 U.S.C. § 3604(a)–(b)
It is illegal to discriminate in selling, renting, or financing a home because of race, color, religion, sex, disability, familial status (having children), or national origin. This covers mortgage lenders and servicers too — for example, in who gets offered a loan modification and on what terms. You can file a complaint with HUD within 1 year or go to court within 2 years.
Read this rightDispute errors on your credit report
15 U.S.C. § 1681i(a)(1)(A)
If your credit report has something wrong or incomplete — like a payment reported late that you made on time — you can dispute it with the credit bureau for free. The bureau must investigate, usually within 30 days, and fix or delete information it cannot verify.
Read this rightMake the company that reported the error investigate it
15 U.S.C. § 1681s-2(b)(1)
The company that reported the information — such as your servicer — must investigate when a credit bureau passes along your dispute, and fix what is wrong with every bureau. In many cases you can also dispute directly with that company, which must then investigate and report back to you.
Read this rightCancel private mortgage insurance (PMI) when you have enough equity
12 U.S.C. § 4902(a)
If you pay private mortgage insurance on a loan for your main home, you can ask in writing to cancel it once your balance reaches 80% of the home's original value, if you have a good payment history and are current. It must end automatically when your balance is scheduled to reach 78%, if you are current.
Read this right