{"data":{"id":"us-ky/krs-367.320","jurisdiction":"us-ky","citation":"KRS 367.320","heading":"Processing of payments by servicer of high-cost home loan.","body":"(1) As used in this section, \"servicer\" means any person or entity who currently collects\nor processes payments on a high -cost home loan, as that term is defined in KRS\n360.100, regardless of whether that person or entity is the owner, the holder, the\nassignee, the nominee for the loan, the beneficiary of a trust, or any person acting on\nbehalf of such person.\n(2) A servicer shall:\n(a) Apply payments promptly upon receipt, so long as the residential mortgage\nloan is still being actively processed. If a payment is received on a Saturday, a\nSunday, or any day when the servicer's principal place of business is not open\nor after 1 p.m. on a business day, it shall be considered promptly applied if\napplied on the next regular business day;\n(b) Apply payments first to interest and principal currently due, then to late fees\ncurrently due, then to other fees and charges currently due, and then to\nadditional principal, as applicable;\n(c) Assess any fee which is otherwise legal under this section within thirty (30)\ndays of the date on which the fee was accrued and disclose any assessed fee\nclearly and conspicuously in the next periodic statement provided to the\nborrower;\n(d) Charge no late fee, if a payment is otherwise a full payment for the applicable\nperiod and is paid on its due date or within an applicable grace period, and the\nonly delinquency or insufficiency of payment is attributable to any late fee or\ndelinquency charge assessed on any earlier payment; and\n(e) Make all payments from the escrow account held for the b orrower for\ninsurance, taxes, and other charges with respect to the property in a timely\nmanner so as to ensure that no late penalties are assessed or other negative\nconsequences result, regardless of whether the loan is delinquent unless there\nare not sufficient funds in the account to cover the payments, and disclose any\npayments from the escrow account clearly and conspicuously in the next\nperiodic statement provided to the borrower.","path":["KRS Chapter 367"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34932","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:03Z","sha256":"475693368bba8fcda224b56c37ec5a78ff1953d770fc3cd61b93696a04b662ac","source_id":"us-ky","stale":false,"prev":"us-ky/krs-367.310","next":"us-ky/krs-367.350"},"notice":"GroundRules: Original legal text. Not legal advice."}