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Under the new Mortgage Servicing rules, does the bank have to display late fees incurred over the life of the loan on the periodic statement or just late fees that were incurred during the billing cycle? In addition, for the past-payment breakdown, is the bank to provide a total amount for the fees charged for the entire calendar year?

The total of fees or charges disclosed in the Explanation of Amount Due section should be limited to any fees or charges imposed during the current statement cycle. That line item should include late fees as well as any other fees or charges that were imposed since the last statement. Any fees that were assessed to the borrower’s mortgage loan account during a prior billing cycle but remain unpaid should then be encompassed in the line item that shows “any payment amount past due.” There does not appear to be any requirement to disclose the total of fees charged for the calendar year on each periodic statement. In the Past Payment Breakdown section of the statement, you do have to provide a breakdown of all payments received since the last statement showing how those payments were applied to principal, interest, escrow, fees, and any partial payment or suspense account (if applicable).

The Past Payment Breakdown section must disclose this information for payments received since the last statement as well as since the beginning of the calendar year. Therefore, if any portion of the borrower’s payments during the last billing cycle or during the calendar year were applied to, then the amount applied to fees would have to be included in the breakdown. Each month, the statement must also show any fees that were assessed to the borrower’s account in the Transaction Activity section of the statement. However, there is no requirement to list a lump sum amount of fees. To the extent you want to include that information somewhere on the statement, the law does provide some flexibility to include additional information, subject to any close proximity requirements that may exist for different sections of the statement. (October 2017)

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