24 CFR §1005.715

1. (a)Servicer shall comply with § 1005.509 with respect to the application of Borrower payments. The Servicer shall apply the payments in the following order:
   1. (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. (2)Interest accrued on the Section 184 Guaranteed Loan;
   3. (3)Principal of the Section 184 Guaranteed Loan; and
   4. (4)Late charges, if permitted under the terms of the Section 184 Guaranteed Loan and subject to such conditions as HUD may prescribe.
2. (b)Partial Payments shall be applied in accordance with § 1005.723.