We offer traditional mortgage loans and also coach only mobile home loans (no land). Our coach only mobile home loans have always been simple interest with payments applied as of the day of receipt (and interest paid to the date of receipt). Our mortgages are all due on the 1st of the month with interest paid to the 1st of the month, no matter when received.

Are there any compliance issues with switching our coach only mobile homes (for new loans going forward) to match the traditional mortgage accrual method with payments due on the 1st and interest paid to the scheduled due date (the first) no matter when received?

Allowable interest accrual methods are a State law issue.

Thank you - I'll search there.

While you're looking at what is/isn't spelled out in state law, don't forget that any change will be limited to newly originated loans. All the old stuff that's already on your books will have to be serviced according to the terms spelled out in each borrower's note.

Thank you - appreciate that reminder.