6
Application of Payments
1. Oldest Unpaid Installment - If a servicer applies
borrower payments to the oldest unpaid installment, the
servicer must advance the date that the next payment is due
or the date that the delinquency began, as applicable.
2. Rolling Delinquency - If a borrower who is 1 or 2 months
delinquent subsequently makes a full PITI payment each
month but never brings the loan current, it could result in a
rolling delinquency. The loan could be delinquent for many
months but never become more than 120 days delinquent.
