§ 1024.35(b)(2)

Section-by-section analysis


Proposed § 1024.35(b)(2) would have included as an error a servicer's failure to apply an accepted payment to the amounts due for principal, interest, escrow, or other items pursuant to the terms of the mortgage loan and applicable law. The Bureau proposed § 1024.35(b)(2) to implement, in part, section 6(k)(1)(C) of RESPA with respect to borrower requests to correct errors relating to the allocation of payments for a borrower's account and other standard servicer duties. Proper allocation of payments is also, by definition, servicing, and already subject to the qualified written request procedures set forth in section 6(e) of RESPA and current § 1024.21(e) of Regulation X. The Bureau did not receive comment regarding proposed § 1024.35(b)(2) and is adopting it as proposed.