What Is the Prompt Payment Crediting Rule for Servicing Companies?

Servicing companies are required by law to promptly credit your periodic payments, including principal, interest, and escrow, as of the day of receipt. In other words, your servicer has to credit your payment immediately on the same day you make a mortgage payment. In circumstances where you cannot pay the full amount for a certain periodic payment (meaning that your servicer will receive a payment that is less than the amount actually due on that date) this payment will be held in a "suspense account." When the amount held in the suspense account is sufficient to actually cover a periodic payment, then the servicer must credit the funds to your account.