---
kind: "section"
citation: "24 C.F.R. § 1005.715"
title: "24"
number: "1005.715"
heading: "Application of Borrower payments."
url: "https://uscodex.org/cfr/24/1005.715"
---

# §1005.715. Application of Borrower payments.

- (a) Servicer shall comply with [§ 1005.509](/cfr/24/1005.509.md) with respect to the application of Borrower payments. The Servicer shall apply the payments in the following order:
  - (1) Escrow items, including monthly payments of the Annual Loan Guarantee Fee, rents, taxes, special assessments, and if required, flood insurance, fire, and other hazard insurance premiums;
  - (2) Interest accrued on the [Section 184](/cfr/24/184.md) Guaranteed Loan;
  - (3) Principal of the [Section 184](/cfr/24/184.md) Guaranteed Loan; and
  - (4) Late charges, if permitted under the terms of the [Section 184](/cfr/24/184.md) Guaranteed Loan and subject to such conditions as HUD may prescribe.
- (b) Partial Payments shall be applied in accordance with [§ 1005.723](/cfr/24/1005.723.md).

## Notes

### Authority

Authority: 12 U.S.C. 1715z-13a; 15 U.S.C. 1639c; 42 U.S.C. 3535(d).

### Source

Source: 89 FR 20056, Mar. 20, 2024; 89 FR 22084, Mar. 29, 2024, unless otherwise noted.