When Your Mortgage Payment Must Be Credited: Federal Rules

Published by the Modern Lending Solutions editorial team. Last reviewed: October 30, 2026.

Short answer: on a closed-end mortgage secured by the home you live in, the servicer must credit a full monthly payment as of the day it receives it. It may hold a partial payment in a suspense account, but once enough builds up to make a full payment, it must treat that as a payment received. It may not charge a new late fee only because an earlier late fee is unpaid, and it must send an accurate payoff statement within seven business days of a written request. This page covers federal law only; other rules may apply where you live. It is general information, not legal or financial advice.

Crediting a full payment

“No servicer shall fail to credit a periodic payment to the consumer’s loan account as of the date of receipt”, except when a delay causes no charge to you and no negative credit reporting (12 CFR 1026.36(c)(1)(i), eCFR, text up to date as of October 28, 2026, read October 30, 2026). A periodic payment is enough to cover principal, interest and escrow, if any, for one billing cycle; it still counts even if it does not include late fees, other fees, or non-escrow amounts the servicer advanced for you.

The official commentary says the date of receipt is the date the check or other payment reaches the servicer, not when the funds are collected, and a bill-pay or automatic payment from your bank is received when the servicer gets that transfer. The servicer does not have to post it to your account that day, as long as later posting does not lead to a late charge, extra interest or a similar penalty, or to negative credit reporting (Supplement I to Part 1026, comments 36(c)(1)(i)-1 and -3).

The CFPB says a servicer can charge a late fee if it receives your payment after the due date, even if you mailed it on time, so allow time for the mail; but if it received the payment before the due date and only posted it later, a late fee is inappropriate (CFPB, last reviewed February 2, 2024, read October 30, 2026; this page may be out of date).

Payments that do not follow the instructions

A servicer may set reasonable written rules for payments, such as including your account number, a cut-off hour, or one address. The commentary gives a 5 p.m. cut-off for a mailed check at the address the servicer names as a reasonable example (comments 36(c)(1)(iii)-1 and -2). If the servicer accepts a payment that does not follow its written rules, it must credit it as of five days after receipt (1026.36(c)(1)(iii)).

Partial payments and suspense accounts

A partial payment is any payment less than a full periodic payment. The commentary says the servicer may credit it when received, return it, or hold it in a suspense or unapplied funds account, unless other law or your loan papers say otherwise (comment 36(c)(1)(ii)-1). If it holds the money, it must show the total held on your periodic statement, and once enough builds up to cover a full payment, it must treat it as a payment received (1026.36(c)(1)(ii)). The statement must show how each payment since the last statement was applied, including any amount sent to suspense (12 CFR 1026.41(d)(3), eCFR).

The CFPB says servicers are generally not required to accept a payment that is less than a periodic payment, and suggests calling the servicer to explain that you are trying to make a partial payment, asking whether it will accept one, and asking about a repayment plan or loan modification (CFPB, last reviewed August 18, 2022; this page may be out of date).

No stacking of late fees

A servicer may not charge a late fee on a payment if the fee is due only to your not paying a late fee on an earlier payment, and the payment is otherwise a full periodic payment made on the due date or within any courtesy period (1026.36(c)(2)). The CFPB says late fees can be charged only in the amount your mortgage documents allow, and that the Closing Disclosure shows them (CFPB, last reviewed April 3, 2024).

Examples, only for the math

These examples are only for the math, and all figures and dates are example figures, not terms of any loan. The full monthly payment of principal, interest and escrow is $1,500.

What happens	What the rule says
You send $900. The servicer holds it in suspense.	Allowed; the $900 must show on your statement as held.
You send $600 more, so $900 + $600 = $1,500 is held.	That equals a full payment, so it must be treated as a periodic payment received.
Last month you paid late and a $75 late fee was charged; you did not pay it.	The fee may stay on the account as owed.
This month you pay $1,500 on the due date.	No new late fee may be charged just because the $75 fee is unpaid.

Payoff statements

For a loan secured by your dwelling, the creditor, assignee or servicer must send “an accurate statement of the total outstanding balance that would be required to pay the consumer’s obligation in full as of a specified date” within a reasonable time, and no more than seven business days after a written request from you or someone acting for you (1026.36(c)(3)). The commentary says that person may include your lawyer, a nonprofit counseling group, or a lender you are refinancing with (comment 36(c)(3)-1). If the loan is in bankruptcy or foreclosure, is a reverse or shared appreciation mortgage, or there is a natural disaster or a similar event, the statement is due within a reasonable time.

As an example only, if the servicer gets your written request on Monday, March 1, 2027, seven business days counted Monday to Friday, with no federal holiday, would end on Wednesday, March 10, 2027. Ask the servicer which days it counts. For why the payoff differs from your balance, see payoff amount vs balance.

If a payment was not credited right

Under Regulation X, a failure to credit a payment as of the date of receipt under 1026.36(c)(1), a failure to give an accurate payoff balance under 1026.36(c)(3), a failure to accept a payment that follows the servicer’s written rules, and a fee the servicer has no reasonable basis to charge are all errors you can raise with a written notice of error (12 CFR 1024.35(b)(1), (3), (5) and (6), eCFR). See how to send a notice of error to your mortgage servicer. You can complain at consumerfinance.gov/complaint. For your own case, ask a lawyer; you can look for legal aid through the Legal Services Corporation.

Related guides

If you are behind, see behind on mortgage payments: your options. If the escrow part changed, see escrow shortage on your mortgage.

Questions to ask your servicer

What are your written payment instructions, including the address and cut-off time?
What date did you receive my payment, and what date was it credited as of?
Do you accept partial payments, and how much is in my suspense account now?
Which late fee is this, and which payment is it for?
Which days do you count as business days for a payoff statement?

Checklist

A full payment is credited as of the day the servicer receives it.
Partial payments may be held, but must show on the statement and count once they add up to a full payment.
A payment that ignores the written instructions is credited as of five days after receipt.
No new late fee only because an old late fee is unpaid.
Payoff statement: within seven business days of a written request.

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Sources

Disclosure: Modern Lending Solutions is not a lender, loan broker or agent for any lender or loan broker, and does not make credit decisions. Any compensation we receive is paid by participating lenders, only for advertising services. This guide is general information, not financial or legal advice.

Mortgage Payment Crediting, Partial Payments and Payoff Statements