Hello, I was reviewing my home loan and noticed something strange. The lender is NOT applying any funds I make above my payment to the principal. 
Instead they are holding those funds in a separate account that I can only presume that is interest bearing, for them. There is a note on my statement that says : " any partial payments that you make are not applied to your mortgage but are instead held in a separate un-applied funds account. If you pay the balance of a partial payment the funds will be applied to your balance. " I looked for clarification and this is what I found : Unapplied Funds Balance. If you send in less than a full payment, this will show the partial payment, which we 'll hold until enough money has been received to make up a full payment. Once a full payment is received, we 'll apply the funds to your account. 

I have been making payments above my min and my next scheduled payment is in XXXX. 
I am NOT and have NEVER been behind. Green Tree bought my loan from XXXX Bank and again I have NEVER been in any type of default status. 

IS it lawful to hold back overpayments? I want to make them apply these funds to my principal immediately instead of allowing them to have a " slush fund '' on the side for them. These " partial payments '' have been in the range of $ XXXX $ XXXX. 
