What Are the Specific Formal Requirements for Periodic Statements?

Federal law regulates mortgage servicers' periodic statements in terms of both form and content.

As for the form, the periodic statement must be sent within a "reasonable prompt" time after the payment due date or at the end of a courtesy period, if applicable. In practice, this means no later than 4 business days.

As for the content, periodic statements must contain:

1) The amount due, which must include:

* Payment due date

* Amount due

* Amount of late fees, if applicable

2) Explanation of the amount due, which must include:

* Monthly payment amount, including a breakdown of how much goes to principal, interest, and escrow

* Total of fees imposed, including servicing fees

* Past amount due

3) Past payment breakdown and transaction activity, which must include:

* Payments made since the last statement and their application to principal, interest, [escrow](https://resources.tellusapp.com/mortgage/tags/escrow), fees, and suspense account

* Payments made since the beginning of the calendar year and their application to principal, interest, escrow, fees, and suspense account

* List of all the transaction activities since the last statement

4) Partial payment information, only if funds are held in a suspense account. In this case, information must be related to what must be done for the funds to be applied.

5) Contact information of the servicer, generally in the form of a phone number or email address

6) General account information, which must include:

* The outstanding principal balance

* Current interest rate

* Date when the interest rate may change, if the loan has a variable interest rate

* Prepayment penalty information, if applicable

* Housing counselor information

7) Delinquency information, only if the borrower is 45 days or more delinquent.