Regulation Z, in §1026.36(c)(1), outlines payment processing requirements for consumer-purpose, closed-end loans secured by the borrower’s primary residence. This section sets rules for crediting loan payments, when a servicer accepts partial payments and how to handle non-conforming payments. With regard to non-conforming payments, the Regulation states a servicer may establish specific reasonable payment requirements in writing. If there are no required written payment instructions, it is assumed that payments may be made at any location where the servicer conducts business during normal business hours and by any medium (cash, check, electronic, etc.). If the servicer specifies payment requirements and accepts a payment that does not conform, the servicer is not required to credit the payment up to five days after receipt.
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Published 2026/08/10