Mortgage Payment Allocation

Kelli Even
May 30, 2023

Effective with the June 1st payment the Mortgage loans (ML) allocation will look a little different.

The Pay Ahead option has modified to 0 which aligns with the industry standard process.  Funds will not be returned or placed into an unapplied bucket all funds will be posted to the loan upon receipt, but in the following fashion:  
 
• Funds received less than 10 days to the due date funds will post to the next payment due

• Funds received 10 or more days prior to the due date will post to Unscheduled Principal.  


A couple examples for reference: Customers Next Due Date 7/1/2023 in the amount of $700.00

$700 received on 6/15/2023 (10 days or more prior to due date) Funds will post to Unscheduled Principal.  The next scheduled payment of 7/1/2023 will remain outstanding.

$700 received on 6/22/2023 – (less than 10 days of due date) Funds will post to the next scheduled payment of 7/1/2023

$350 received on 6/10/2023 (10 days or more prior to due date) Funds will post to Unscheduled Principal.  The next scheduled payment of 7/1/2023 will remain outstanding.

$350 received on 6/27/2023 – (less than 10 days of due date) Funds will post to the next scheduled payment of 7/1/2023.  this would be looked as a partial payment and will satisfy some of the next payment due.  

Questions may be directed to the Mortgage Lender, Kate Reicherts, Kelli Even or Jason Hosch.  

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