Posting oder of mortgage payments

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    For mortgage payments, does anyone’s system take first the escrow payment, next the interest and the remaining to principal, late fees, etc.? (I am aware that however it is posted, our note should mirror it.)

    To my knowledge, there is no federal law that dictates “posting order” of loan payments. I may be wrong about that. IMO however, it could be viewed upon negatively from our regulatory agency to post that way…(UDAPP criticism). I feel the escrow should be credited after the interest and principal payment is credited.

    Any thoughts? Thanks!


    We are unaware of any federal law that mandates the order of posting payments. As long as the payment order is properly disclosed in your contract, we don’t see a UDAAP concern.

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