KRS 367.320: Processing of payments by servicer of high-cost home loan.

(1) As used in this section, "servicer" means any person or entity who currently collects

or processes payments on a high -cost home loan, as that term is defined in KRS

360.100, regardless of whether that person or entity is the owner, the holder, the

assignee, the nominee for the loan, the beneficiary of a trust, or any person acting on

behalf of such person.

(2) A servicer shall:

(a) Apply payments promptly upon receipt, so long as the residential mortgage

loan is still being actively processed. If a payment is received on a Saturday, a

Sunday, or any day when the servicer's principal place of business is not open

or after 1 p.m. on a business day, it shall be considered promptly applied if

applied on the next regular business day;

(b) Apply payments first to interest and principal currently due, then to late fees

currently due, then to other fees and charges currently due, and then to

additional principal, as applicable;

(c) Assess any fee which is otherwise legal under this section within thirty (30)

days of the date on which the fee was accrued and disclose any assessed fee

clearly and conspicuously in the next periodic statement provided to the

borrower;

(d) Charge no late fee, if a payment is otherwise a full payment for the applicable

period and is paid on its due date or within an applicable grace period, and the

only delinquency or insufficiency of payment is attributable to any late fee or

delinquency charge assessed on any earlier payment; and

(e) Make all payments from the escrow account held for the b orrower for

insurance, taxes, and other charges with respect to the property in a timely

manner so as to ensure that no late penalties are assessed or other negative

consequences result, regardless of whether the loan is delinquent unless there

are not sufficient funds in the account to cover the payments, and disclose any

payments from the escrow account clearly and conspicuously in the next

periodic statement provided to the borrower.