Under the rule, mortgage company payments may be redirected to pay delinquency only if permission is provided. Which statement is true?

• A. Yes, if permission is provided
• B. No, never allowed
• C. Yes, always
• D. Only for utilities

Answer: (A)

The key idea is that a mortgage servicer can redirect payments to cover delinquency only when the borrower has explicitly authorized that reallocation. This ensures funds aren’t moved to past-due amounts without the borrower’s consent, protecting the debtor’s control over where payments go. When permission is provided, directing payments toward delinquency is allowed, which is why the statement is true. The other options conflict with the need for consent or misapply the scope (unilateral action is not allowed, and utilities aren’t the focus here).