When is a mortgage payment late and is a late charge assessed?

The Mortgagee may consider a Borrower’s payment late if the payment is received by the Mortgagee more than 15 Days after the due date. The Mortgagee may assess a late charge on the 17th Day of the month.
Late Charges guidance including the following:
  • How the late charge is assessed
  • Notifying the borrower of the late charge
  • Application of subsequent payment to unpaid late charges
  • Default/Foreclosure due to unpaid late charges
  • Required documentation
See policy located in Handbook 4000.1 III.A.2.d. available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh

Any questions may be directed to the FHA Resource Center Toll-Free Telephone Number at (800) CALLFHA (225-5342) or by email to answers@hud.gov.  Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at (800) 877-8339. 

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-04999