diff --git a/lnrpc/routerrpc/config.go b/lnrpc/routerrpc/config.go
new file mode 100644
index 00000000..15dd6c40
--- /dev/null
+++ b/lnrpc/routerrpc/config.go
@@ -0,0 +1,28 @@
+package routerrpc
+
+import (
+	"time"
+
+	"github.com/lightningnetwork/lnd/lnwire"
+)
+
+// RoutingConfig contains the configurable parameters that control routing.
+type RoutingConfig struct {
+	// PenaltyHalfLife defines after how much time a penalized node or
+	// channel is back at 50% probability.
+	PenaltyHalfLife time.Duration
+
+	// PaymentAttemptPenalty is the virtual cost in path finding weight
+	// units of executing a payment attempt that fails. It is used to trade
+	// off potentially better routes against their probability of
+	// succeeding.
+	PaymentAttemptPenalty lnwire.MilliSatoshi
+
+	// MinProbability defines the minimum success probability of the
+	// returned route.
+	MinRouteProbability float64
+
+	// AprioriHopProbability is the assumed success probability of a hop in
+	// a route when no other information is available.
+	AprioriHopProbability float64
+}
diff --git a/lnrpc/routerrpc/config_active.go b/lnrpc/routerrpc/config_active.go
index 36877c36..b919364e 100644
--- a/lnrpc/routerrpc/config_active.go
+++ b/lnrpc/routerrpc/config_active.go
@@ -72,10 +72,9 @@ func DefaultConfig() *Config {
 	}
 }
 
-// GetMissionControlConfig returns the mission control config based on this sub
-// server config.
-func GetMissionControlConfig(cfg *Config) *routing.MissionControlConfig {
-	return &routing.MissionControlConfig{
+// GetRoutingConfig returns the routing config based on this sub server config.
+func GetRoutingConfig(cfg *Config) *RoutingConfig {
+	return &RoutingConfig{
 		AprioriHopProbability: cfg.AprioriHopProbability,
 		MinRouteProbability:   cfg.MinRouteProbability,
 		PaymentAttemptPenalty: lnwire.NewMSatFromSatoshis(
diff --git a/lnrpc/routerrpc/config_default.go b/lnrpc/routerrpc/config_default.go
index 81c4a577..a3a95021 100644
--- a/lnrpc/routerrpc/config_default.go
+++ b/lnrpc/routerrpc/config_default.go
@@ -14,10 +14,9 @@ func DefaultConfig() *Config {
 	return &Config{}
 }
 
-// GetMissionControlConfig returns the mission control config based on this sub
-// server config.
-func GetMissionControlConfig(cfg *Config) *routing.MissionControlConfig {
-	return &routing.MissionControlConfig{
+// GetRoutingConfig returns the routing config based on this sub server config.
+func GetRoutingConfig(cfg *Config) *RoutingConfig {
+	return &RoutingConfig{
 		AprioriHopProbability: routing.DefaultAprioriHopProbability,
 		MinRouteProbability:   routing.DefaultMinRouteProbability,
 		PaymentAttemptPenalty: routing.DefaultPaymentAttemptPenalty,
diff --git a/routing/missioncontrol.go b/routing/missioncontrol.go
index 17575a72..627b1789 100644
--- a/routing/missioncontrol.go
+++ b/routing/missioncontrol.go
@@ -5,12 +5,8 @@ import (
 	"sync"
 	"time"
 
-	"github.com/btcsuite/btcd/btcec"
-	"github.com/coreos/bbolt"
-	"github.com/lightningnetwork/lnd/channeldb"
 	"github.com/lightningnetwork/lnd/lnwire"
 	"github.com/lightningnetwork/lnd/routing/route"
-	"github.com/lightningnetwork/lnd/zpay32"
 )
 
 const (
@@ -18,6 +14,30 @@ const (
 	// half-life duration defines after how much time a penalized node or
 	// channel is back at 50% probability.
 	DefaultPenaltyHalfLife = time.Hour
+
+	// minSecondChanceInterval is the minimum time required between
+	// second-chance failures.
+	//
+	// If nodes return a channel policy related failure, they may get a
+	// second chance to forward the payment. It could be that the channel
+	// policy that we are aware of is not up to date. This is especially
+	// important in case of mobile apps that are mostly offline.
+	//
+	// However, we don't want to give nodes the option to endlessly return
+	// new channel updates so that we are kept busy trying to route through
+	// that node until the payment loop times out.
+	//
+	// Therefore we only grant a second chance to a node if the previous
+	// second chance is sufficiently long ago. This is what
+	// minSecondChanceInterval defines. If a second policy failure comes in
+	// within that interval, we will apply a penalty.
+	//
+	// Second chances granted are tracked on the level of node pairs. This
+	// means that if a node has multiple channels to the same peer, they
+	// will only get a single second chance to route to that peer again.
+	// Nodes forward non-strict, so it isn't necessary to apply a less
+	// restrictive channel level tracking scheme here.
+	minSecondChanceInterval = time.Minute
 )
 
 // MissionControl contains state which summarizes the past attempts of HTLC
@@ -32,11 +52,9 @@ const (
 type MissionControl struct {
 	history map[route.Vertex]*nodeHistory
 
-	graph *channeldb.ChannelGraph
-
-	selfNode *channeldb.LightningNode
-
-	queryBandwidth func(*channeldb.ChannelEdgeInfo) lnwire.MilliSatoshi
+	// lastSecondChance tracks the last time a second chance was granted for
+	// a directed node pair.
+	lastSecondChance map[DirectedNodePair]time.Time
 
 	// now is expected to return the current time. It is supplied as an
 	// external function to enable deterministic unit tests.
@@ -52,10 +70,6 @@ type MissionControl struct {
 	// TODO(roasbeef): also add favorable metrics for nodes
 }
 
-// A compile time assertion to ensure MissionControl meets the
-// PaymentSessionSource interface.
-var _ PaymentSessionSource = (*MissionControl)(nil)
-
 // MissionControlConfig defines parameters that control mission control
 // behaviour.
 type MissionControlConfig struct {
@@ -63,16 +77,6 @@ type MissionControlConfig struct {
 	// channel is back at 50% probability.
 	PenaltyHalfLife time.Duration
 
-	// PaymentAttemptPenalty is the virtual cost in path finding weight
-	// units of executing a payment attempt that fails. It is used to trade
-	// off potentially better routes against their probability of
-	// succeeding.
-	PaymentAttemptPenalty lnwire.MilliSatoshi
-
-	// MinProbability defines the minimum success probability of the
-	// returned route.
-	MinRouteProbability float64
-
 	// AprioriHopProbability is the assumed success probability of a hop in
 	// a route when no other information is available.
 	AprioriHopProbability float64
@@ -143,164 +147,19 @@ type MissionControlChannelSnapshot struct {
 }
 
 // NewMissionControl returns a new instance of missionControl.
-//
-// TODO(roasbeef): persist memory
-func NewMissionControl(g *channeldb.ChannelGraph, selfNode *channeldb.LightningNode,
-	qb func(*channeldb.ChannelEdgeInfo) lnwire.MilliSatoshi,
-	cfg *MissionControlConfig) *MissionControl {
-
+func NewMissionControl(cfg *MissionControlConfig) *MissionControl {
 	log.Debugf("Instantiating mission control with config: "+
-		"PenaltyHalfLife=%v, PaymentAttemptPenalty=%v, "+
-		"MinRouteProbability=%v, AprioriHopProbability=%v",
-		cfg.PenaltyHalfLife,
-		int64(cfg.PaymentAttemptPenalty.ToSatoshis()),
-		cfg.MinRouteProbability, cfg.AprioriHopProbability)
+		"PenaltyHalfLife=%v, AprioriHopProbability=%v",
+		cfg.PenaltyHalfLife, cfg.AprioriHopProbability)
 
 	return &MissionControl{
-		history:        make(map[route.Vertex]*nodeHistory),
-		selfNode:       selfNode,
-		queryBandwidth: qb,
-		graph:          g,
-		now:            time.Now,
-		cfg:            cfg,
+		history:          make(map[route.Vertex]*nodeHistory),
+		lastSecondChance: make(map[DirectedNodePair]time.Time),
+		now:              time.Now,
+		cfg:              cfg,
 	}
 }
 
-// NewPaymentSession creates a new payment session backed by the latest prune
-// view from Mission Control. An optional set of routing hints can be provided
-// in order to populate additional edges to explore when finding a path to the
-// payment's destination.
-func (m *MissionControl) NewPaymentSession(routeHints [][]zpay32.HopHint,
-	target route.Vertex) (PaymentSession, error) {
-
-	edges := make(map[route.Vertex][]*channeldb.ChannelEdgePolicy)
-
-	// Traverse through all of the available hop hints and include them in
-	// our edges map, indexed by the public key of the channel's starting
-	// node.
-	for _, routeHint := range routeHints {
-		// If multiple hop hints are provided within a single route
-		// hint, we'll assume they must be chained together and sorted
-		// in forward order in order to reach the target successfully.
-		for i, hopHint := range routeHint {
-			// In order to determine the end node of this hint,
-			// we'll need to look at the next hint's start node. If
-			// we've reached the end of the hints list, we can
-			// assume we've reached the destination.
-			endNode := &channeldb.LightningNode{}
-			if i != len(routeHint)-1 {
-				endNode.AddPubKey(routeHint[i+1].NodeID)
-			} else {
-				targetPubKey, err := btcec.ParsePubKey(
-					target[:], btcec.S256(),
-				)
-				if err != nil {
-					return nil, err
-				}
-				endNode.AddPubKey(targetPubKey)
-			}
-
-			// Finally, create the channel edge from the hop hint
-			// and add it to list of edges corresponding to the node
-			// at the start of the channel.
-			edge := &channeldb.ChannelEdgePolicy{
-				Node:      endNode,
-				ChannelID: hopHint.ChannelID,
-				FeeBaseMSat: lnwire.MilliSatoshi(
-					hopHint.FeeBaseMSat,
-				),
-				FeeProportionalMillionths: lnwire.MilliSatoshi(
-					hopHint.FeeProportionalMillionths,
-				),
-				TimeLockDelta: hopHint.CLTVExpiryDelta,
-			}
-
-			v := route.NewVertex(hopHint.NodeID)
-			edges[v] = append(edges[v], edge)
-		}
-	}
-
-	// We'll also obtain a set of bandwidthHints from the lower layer for
-	// each of our outbound channels. This will allow the path finding to
-	// skip any links that aren't active or just don't have enough
-	// bandwidth to carry the payment.
-	sourceNode, err := m.graph.SourceNode()
-	if err != nil {
-		return nil, err
-	}
-	bandwidthHints, err := generateBandwidthHints(
-		sourceNode, m.queryBandwidth,
-	)
-	if err != nil {
-		return nil, err
-	}
-
-	return &paymentSession{
-		additionalEdges:      edges,
-		bandwidthHints:       bandwidthHints,
-		errFailedPolicyChans: make(map[nodeChannel]struct{}),
-		mc:                   m,
-		pathFinder:           findPath,
-	}, nil
-}
-
-// NewPaymentSessionForRoute creates a new paymentSession instance that is just
-// used for failure reporting to missioncontrol.
-func (m *MissionControl) NewPaymentSessionForRoute(preBuiltRoute *route.Route) PaymentSession {
-	return &paymentSession{
-		errFailedPolicyChans: make(map[nodeChannel]struct{}),
-		mc:                   m,
-		preBuiltRoute:        preBuiltRoute,
-	}
-}
-
-// NewPaymentSessionEmpty creates a new paymentSession instance that is empty,
-// and will be exhausted immediately. Used for failure reporting to
-// missioncontrol for resumed payment we don't want to make more attempts for.
-func (m *MissionControl) NewPaymentSessionEmpty() PaymentSession {
-	return &paymentSession{
-		errFailedPolicyChans: make(map[nodeChannel]struct{}),
-		mc:                   m,
-		preBuiltRoute:        &route.Route{},
-		preBuiltRouteTried:   true,
-	}
-}
-
-// generateBandwidthHints is a helper function that's utilized the main
-// findPath function in order to obtain hints from the lower layer w.r.t to the
-// available bandwidth of edges on the network. Currently, we'll only obtain
-// bandwidth hints for the edges we directly have open ourselves. Obtaining
-// these hints allows us to reduce the number of extraneous attempts as we can
-// skip channels that are inactive, or just don't have enough bandwidth to
-// carry the payment.
-func generateBandwidthHints(sourceNode *channeldb.LightningNode,
-	queryBandwidth func(*channeldb.ChannelEdgeInfo) lnwire.MilliSatoshi) (map[uint64]lnwire.MilliSatoshi, error) {
-
-	// First, we'll collect the set of outbound edges from the target
-	// source node.
-	var localChans []*channeldb.ChannelEdgeInfo
-	err := sourceNode.ForEachChannel(nil, func(tx *bbolt.Tx,
-		edgeInfo *channeldb.ChannelEdgeInfo,
-		_, _ *channeldb.ChannelEdgePolicy) error {
-
-		localChans = append(localChans, edgeInfo)
-		return nil
-	})
-	if err != nil {
-		return nil, err
-	}
-
-	// Now that we have all of our outbound edges, we'll populate the set
-	// of bandwidth hints, querying the lower switch layer for the most up
-	// to date values.
-	bandwidthHints := make(map[uint64]lnwire.MilliSatoshi)
-	for _, localChan := range localChans {
-		bandwidthHints[localChan.ChannelID] = queryBandwidth(localChan)
-	}
-
-	return bandwidthHints, nil
-}
-
 // ResetHistory resets the history of MissionControl returning it to a state as
 // if no payment attempts have been made.
 func (m *MissionControl) ResetHistory() {
@@ -308,13 +167,14 @@ func (m *MissionControl) ResetHistory() {
 	defer m.Unlock()
 
 	m.history = make(map[route.Vertex]*nodeHistory)
+	m.lastSecondChance = make(map[DirectedNodePair]time.Time)
 
 	log.Debugf("Mission control history cleared")
 }
 
-// getEdgeProbability is expected to return the success probability of a payment
+// GetEdgeProbability is expected to return the success probability of a payment
 // from fromNode along edge.
-func (m *MissionControl) getEdgeProbability(fromNode route.Vertex,
+func (m *MissionControl) GetEdgeProbability(fromNode route.Vertex,
 	edge EdgeLocator, amt lnwire.MilliSatoshi) float64 {
 
 	m.Lock()
@@ -376,6 +236,37 @@ func (m *MissionControl) getEdgeProbabilityForNode(nodeHistory *nodeHistory,
 	return probability
 }
 
+// requestSecondChance checks whether the node fromNode can have a second chance
+// at providing a channel update for its channel with toNode.
+func (m *MissionControl) requestSecondChance(timestamp time.Time,
+	fromNode, toNode route.Vertex) bool {
+
+	// Look up previous second chance time.
+	pair := DirectedNodePair{
+		From: fromNode,
+		To:   toNode,
+	}
+	lastSecondChance, ok := m.lastSecondChance[pair]
+
+	// If the channel hasn't already be given a second chance or its last
+	// second chance was long ago, we give it another chance.
+	if !ok || timestamp.Sub(lastSecondChance) > minSecondChanceInterval {
+		m.lastSecondChance[pair] = timestamp
+
+		log.Debugf("Second chance granted for %v->%v", fromNode, toNode)
+
+		return true
+	}
+
+	// Otherwise penalize the channel, because we don't allow channel
+	// updates that are that frequent. This is to prevent nodes from keeping
+	// us busy by continuously sending new channel updates.
+	log.Debugf("Second chance denied for %v->%v, remaining interval: %v",
+		fromNode, toNode, timestamp.Sub(lastSecondChance))
+
+	return false
+}
+
 // createHistoryIfNotExists returns the history for the given node. If the node
 // is yet unknown, it will create an empty history structure.
 func (m *MissionControl) createHistoryIfNotExists(vertex route.Vertex) *nodeHistory {
@@ -391,8 +282,8 @@ func (m *MissionControl) createHistoryIfNotExists(vertex route.Vertex) *nodeHist
 	return node
 }
 
-// reportVertexFailure reports a node level failure.
-func (m *MissionControl) reportVertexFailure(v route.Vertex) {
+// ReportVertexFailure reports a node level failure.
+func (m *MissionControl) ReportVertexFailure(v route.Vertex) {
 	log.Debugf("Reporting vertex %v failure to Mission Control", v)
 
 	now := m.now()
@@ -404,10 +295,30 @@ func (m *MissionControl) reportVertexFailure(v route.Vertex) {
 	history.lastFail = &now
 }
 
-// reportEdgeFailure reports a channel level failure.
+// ReportEdgePolicyFailure reports a policy related failure.
+func (m *MissionControl) ReportEdgePolicyFailure(failedEdge edge) {
+	now := m.now()
+
+	m.Lock()
+	defer m.Unlock()
+
+	// We may have an out of date graph. Therefore we don't always penalize
+	// immediately. If some time has passed since the last policy failure,
+	// we grant the node a second chance at forwarding the payment.
+	if m.requestSecondChance(
+		now, failedEdge.from, failedEdge.to,
+	) {
+		return
+	}
+
+	history := m.createHistoryIfNotExists(failedEdge.from)
+	history.lastFail = &now
+}
+
+// ReportEdgeFailure reports a channel level failure.
 //
 // TODO(roasbeef): also add value attempted to send and capacity of channel
-func (m *MissionControl) reportEdgeFailure(failedEdge edge,
+func (m *MissionControl) ReportEdgeFailure(failedEdge edge,
 	minPenalizeAmt lnwire.MilliSatoshi) {
 
 	log.Debugf("Reporting channel %v failure to Mission Control",
diff --git a/routing/missioncontrol_test.go b/routing/missioncontrol_test.go
index 19a28828..237f81df 100644
--- a/routing/missioncontrol_test.go
+++ b/routing/missioncontrol_test.go
@@ -8,17 +8,56 @@ import (
 	"github.com/lightningnetwork/lnd/routing/route"
 )
 
-// TestMissionControl tests mission control probability estimation.
-func TestMissionControl(t *testing.T) {
-	now := testTime
+var (
+	mcTestNode = route.Vertex{}
+	mcTestEdge = EdgeLocator{
+		ChannelID: 123,
+	}
+	mcTestTime = time.Date(2018, time.January, 9, 14, 00, 00, 0, time.UTC)
+)
+
+type mcTestContext struct {
+	t   *testing.T
+	mc  *MissionControl
+	now time.Time
+}
+
+func createMcTestContext(t *testing.T) *mcTestContext {
+	ctx := &mcTestContext{
+		t:   t,
+		now: mcTestTime,
+	}
 
 	mc := NewMissionControl(
-		nil, nil, nil, &MissionControlConfig{
+		&MissionControlConfig{
 			PenaltyHalfLife:       30 * time.Minute,
 			AprioriHopProbability: 0.8,
 		},
 	)
-	mc.now = func() time.Time { return now }
+
+	mc.now = func() time.Time { return ctx.now }
+	ctx.mc = mc
+
+	return ctx
+}
+
+// Assert that mission control returns a probability for an edge.
+func (ctx *mcTestContext) expectP(amt lnwire.MilliSatoshi,
+	expected float64) {
+
+	ctx.t.Helper()
+
+	p := ctx.mc.GetEdgeProbability(mcTestNode, mcTestEdge, amt)
+	if p != expected {
+		ctx.t.Fatalf("unexpected probability %v", p)
+	}
+}
+
+// TestMissionControl tests mission control probability estimation.
+func TestMissionControl(t *testing.T) {
+	ctx := createMcTestContext(t)
+
+	ctx.now = testTime
 
 	testTime := time.Date(2018, time.January, 9, 14, 00, 00, 0, time.UTC)
 
@@ -27,50 +66,38 @@ func TestMissionControl(t *testing.T) {
 		channel: 123,
 	}
 
-	expectP := func(amt lnwire.MilliSatoshi, expected float64) {
-		t.Helper()
-
-		p := mc.getEdgeProbability(
-			testNode, EdgeLocator{ChannelID: testEdge.channel},
-			amt,
-		)
-		if p != expected {
-			t.Fatalf("unexpected probability %v", p)
-		}
-	}
-
 	// Initial probability is expected to be 1.
-	expectP(1000, 0.8)
+	ctx.expectP(1000, 0.8)
 
 	// Expect probability to be zero after reporting the edge as failed.
-	mc.reportEdgeFailure(testEdge, 1000)
-	expectP(1000, 0)
+	ctx.mc.ReportEdgeFailure(testEdge, 1000)
+	ctx.expectP(1000, 0)
 
 	// As we reported with a min penalization amt, a lower amt than reported
 	// should be unaffected.
-	expectP(500, 0.8)
+	ctx.expectP(500, 0.8)
 
 	// Edge decay started.
-	now = testTime.Add(30 * time.Minute)
-	expectP(1000, 0.4)
+	ctx.now = testTime.Add(30 * time.Minute)
+	ctx.expectP(1000, 0.4)
 
 	// Edge fails again, this time without a min penalization amt. The edge
 	// should be penalized regardless of amount.
-	mc.reportEdgeFailure(testEdge, 0)
-	expectP(1000, 0)
-	expectP(500, 0)
+	ctx.mc.ReportEdgeFailure(testEdge, 0)
+	ctx.expectP(1000, 0)
+	ctx.expectP(500, 0)
 
 	// Edge decay started.
-	now = testTime.Add(60 * time.Minute)
-	expectP(1000, 0.4)
+	ctx.now = testTime.Add(60 * time.Minute)
+	ctx.expectP(1000, 0.4)
 
 	// A node level failure should bring probability of every channel back
 	// to zero.
-	mc.reportVertexFailure(testNode)
-	expectP(1000, 0)
+	ctx.mc.ReportVertexFailure(testNode)
+	ctx.expectP(1000, 0)
 
 	// Check whether history snapshot looks sane.
-	history := mc.GetHistorySnapshot()
+	history := ctx.mc.GetHistorySnapshot()
 	if len(history.Nodes) != 1 {
 		t.Fatal("unexpected number of nodes")
 	}
@@ -79,3 +106,25 @@ func TestMissionControl(t *testing.T) {
 		t.Fatal("unexpected number of channels")
 	}
 }
+
+// TestMissionControlChannelUpdate tests that the first channel update is not
+// penalizing the channel yet.
+func TestMissionControlChannelUpdate(t *testing.T) {
+	ctx := createMcTestContext(t)
+
+	testEdge := edge{
+		channel: 123,
+	}
+
+	// Report a policy related failure. Because it is the first, we don't
+	// expect a penalty.
+	ctx.mc.ReportEdgePolicyFailure(testEdge)
+
+	ctx.expectP(0, 0.8)
+
+	// Report another failure for the same channel. We expect it to be
+	// pruned.
+	ctx.mc.ReportEdgePolicyFailure(testEdge)
+
+	ctx.expectP(0, 0)
+}
diff --git a/routing/mock_test.go b/routing/mock_test.go
index f2f7de78..4c4f97eb 100644
--- a/routing/mock_test.go
+++ b/routing/mock_test.go
@@ -93,6 +93,25 @@ func (m *mockPaymentSessionSource) NewPaymentSessionEmpty() PaymentSession {
 	return &mockPaymentSession{}
 }
 
+type mockMissionControl struct {
+}
+
+var _ MissionController = (*mockMissionControl)(nil)
+
+func (m *mockMissionControl) ReportEdgeFailure(failedEdge edge,
+	minPenalizeAmt lnwire.MilliSatoshi) {
+}
+
+func (m *mockMissionControl) ReportEdgePolicyFailure(failedEdge edge) {}
+
+func (m *mockMissionControl) ReportVertexFailure(v route.Vertex) {}
+
+func (m *mockMissionControl) GetEdgeProbability(fromNode route.Vertex, edge EdgeLocator,
+	amt lnwire.MilliSatoshi) float64 {
+
+	return 0
+}
+
 type mockPaymentSession struct {
 	routes []*route.Route
 }
diff --git a/routing/nodepair.go b/routing/nodepair.go
new file mode 100644
index 00000000..edec8e02
--- /dev/null
+++ b/routing/nodepair.go
@@ -0,0 +1,10 @@
+package routing
+
+import (
+	"github.com/lightningnetwork/lnd/routing/route"
+)
+
+// DirectedNodePair stores a directed pair of nodes.
+type DirectedNodePair struct {
+	From, To route.Vertex
+}
diff --git a/routing/payment_lifecycle.go b/routing/payment_lifecycle.go
index 32f6883e..4de85b5d 100644
--- a/routing/payment_lifecycle.go
+++ b/routing/payment_lifecycle.go
@@ -343,7 +343,7 @@ func (p *paymentLifecycle) sendPaymentAttempt(firstHop lnwire.ShortChannelID,
 func (p *paymentLifecycle) handleSendError(sendErr error) error {
 
 	final, reason := p.router.processSendError(
-		p.paySession, &p.attempt.Route, sendErr,
+		&p.attempt.Route, sendErr,
 	)
 	if !final {
 		// Save the forwarding error so it can be returned if
diff --git a/routing/payment_session.go b/routing/payment_session.go
index 7508e30a..44abeae9 100644
--- a/routing/payment_session.go
+++ b/routing/payment_session.go
@@ -16,27 +16,6 @@ type PaymentSession interface {
 	// specified HTLC payment to the target node.
 	RequestRoute(payment *LightningPayment,
 		height uint32, finalCltvDelta uint16) (*route.Route, error)
-
-	// ReportVertexFailure reports to the PaymentSession that the passsed
-	// vertex failed to route the previous payment attempt. The
-	// PaymentSession will use this information to produce a better next
-	// route.
-	ReportVertexFailure(v route.Vertex)
-
-	// ReportEdgeFailure reports to the PaymentSession that the passed edge
-	// failed to route the previous payment attempt. A minimum penalization
-	// amount is included to attenuate the failure. This is set to a
-	// non-zero value for channel balance failures. The PaymentSession will
-	// use this information to produce a better next route.
-	ReportEdgeFailure(failedEdge edge, minPenalizeAmt lnwire.MilliSatoshi)
-
-	// ReportEdgePolicyFailure reports to the PaymentSession that we
-	// received a failure message that relates to a channel policy. For
-	// these types of failures, the PaymentSession can decide whether to to
-	// keep the edge included in the next attempted route. The
-	// PaymentSession will use this information to produce a better next
-	// route.
-	ReportEdgePolicyFailure(failedEdge edge)
 }
 
 // paymentSession is used during an HTLC routings session to prune the local
@@ -52,13 +31,7 @@ type paymentSession struct {
 
 	bandwidthHints map[uint64]lnwire.MilliSatoshi
 
-	// errFailedFeeChans is a map of the short channel IDs that were the
-	// source of policy related routing failures during this payment attempt.
-	// We'll use this map to prune out channels when the first error may not
-	// require pruning, but any subsequent ones do.
-	errFailedPolicyChans map[nodeChannel]struct{}
-
-	mc *MissionControl
+	sessionSource *SessionSource
 
 	preBuiltRoute      *route.Route
 	preBuiltRouteTried bool
@@ -66,68 +39,6 @@ type paymentSession struct {
 	pathFinder pathFinder
 }
 
-// A compile time assertion to ensure paymentSession meets the PaymentSession
-// interface.
-var _ PaymentSession = (*paymentSession)(nil)
-
-// ReportVertexFailure adds a vertex to the graph prune view after a client
-// reports a routing failure localized to the vertex. The time the vertex was
-// added is noted, as it'll be pruned from the shared view after a period of
-// vertexDecay. However, the vertex will remain pruned for the *local* session.
-// This ensures we don't retry this vertex during the payment attempt.
-//
-// NOTE: Part of the PaymentSession interface.
-func (p *paymentSession) ReportVertexFailure(v route.Vertex) {
-	p.mc.reportVertexFailure(v)
-}
-
-// ReportEdgeFailure adds a channel to the graph prune view. The time the
-// channel was added is noted, as it'll be pruned from the global view after a
-// period of edgeDecay. However, the edge will remain pruned for the duration
-// of the *local* session. This ensures that we don't flap by continually
-// retrying an edge after its pruning has expired.
-//
-// TODO(roasbeef): also add value attempted to send and capacity of channel
-//
-// NOTE: Part of the PaymentSession interface.
-func (p *paymentSession) ReportEdgeFailure(failedEdge edge,
-	minPenalizeAmt lnwire.MilliSatoshi) {
-
-	p.mc.reportEdgeFailure(failedEdge, minPenalizeAmt)
-}
-
-// ReportEdgePolicyFailure handles a failure message that relates to a
-// channel policy. For these types of failures, the policy is updated and we
-// want to keep it included during path finding. This function does mark the
-// edge as 'policy failed once'. The next time it fails, the whole node will be
-// pruned. This is to prevent nodes from keeping us busy by continuously sending
-// new channel updates.
-//
-// NOTE: Part of the PaymentSession interface.
-//
-// TODO(joostjager): Move this logic into global mission control.
-func (p *paymentSession) ReportEdgePolicyFailure(failedEdge edge) {
-	key := nodeChannel{
-		node:    failedEdge.from,
-		channel: failedEdge.channel,
-	}
-
-	// Check to see if we've already reported a policy related failure for
-	// this channel. If so, then we'll prune out the vertex.
-	_, ok := p.errFailedPolicyChans[key]
-	if ok {
-		// TODO(joostjager): is this aggressive pruning still necessary?
-		// Just pruning edges may also work unless there is a huge
-		// number of failing channels from that node?
-		p.ReportVertexFailure(key.node)
-
-		return
-	}
-
-	// Finally, we'll record a policy failure from this node and move on.
-	p.errFailedPolicyChans[key] = struct{}{}
-}
-
 // RequestRoute returns a route which is likely to be capable for successfully
 // routing the specified HTLC payment to the target node. Initially the first
 // set of paths returned from this method may encounter routing failure along
@@ -169,21 +80,24 @@ func (p *paymentSession) RequestRoute(payment *LightningPayment,
 	// Taking into account this prune view, we'll attempt to locate a path
 	// to our destination, respecting the recommendations from
 	// MissionControl.
+	ss := p.sessionSource
+
+	restrictions := &RestrictParams{
+		ProbabilitySource:     ss.MissionControl.GetEdgeProbability,
+		FeeLimit:              payment.FeeLimit,
+		OutgoingChannelID:     payment.OutgoingChannelID,
+		CltvLimit:             cltvLimit,
+		PaymentAttemptPenalty: ss.PaymentAttemptPenalty,
+		MinProbability:        ss.MinRouteProbability,
+	}
+
 	path, err := p.pathFinder(
 		&graphParams{
-			graph:           p.mc.graph,
+			graph:           ss.Graph,
 			additionalEdges: p.additionalEdges,
 			bandwidthHints:  p.bandwidthHints,
 		},
-		&RestrictParams{
-			ProbabilitySource:     p.mc.getEdgeProbability,
-			FeeLimit:              payment.FeeLimit,
-			OutgoingChannelID:     payment.OutgoingChannelID,
-			CltvLimit:             cltvLimit,
-			PaymentAttemptPenalty: p.mc.cfg.PaymentAttemptPenalty,
-			MinProbability:        p.mc.cfg.MinRouteProbability,
-		},
-		p.mc.selfNode.PubKeyBytes, payment.Target,
+		restrictions, ss.SelfNode.PubKeyBytes, payment.Target,
 		payment.Amount,
 	)
 	if err != nil {
@@ -192,7 +106,7 @@ func (p *paymentSession) RequestRoute(payment *LightningPayment,
 
 	// With the next candidate path found, we'll attempt to turn this into
 	// a route by applying the time-lock and fee requirements.
-	sourceVertex := route.Vertex(p.mc.selfNode.PubKeyBytes)
+	sourceVertex := route.Vertex(ss.SelfNode.PubKeyBytes)
 	route, err := newRoute(
 		payment.Amount, sourceVertex, path, height, finalCltvDelta,
 	)
diff --git a/routing/payment_session_source.go b/routing/payment_session_source.go
new file mode 100644
index 00000000..77dad51e
--- /dev/null
+++ b/routing/payment_session_source.go
@@ -0,0 +1,147 @@
+package routing
+
+import (
+	"github.com/btcsuite/btcd/btcec"
+	"github.com/lightningnetwork/lnd/channeldb"
+	"github.com/lightningnetwork/lnd/lnwire"
+	"github.com/lightningnetwork/lnd/routing/route"
+	"github.com/lightningnetwork/lnd/zpay32"
+)
+
+// A compile time assertion to ensure MissionControl meets the
+// PaymentSessionSource interface.
+var _ PaymentSessionSource = (*SessionSource)(nil)
+
+// SessionSource defines a source for the router to retrieve new payment
+// sessions.
+type SessionSource struct {
+	// Graph is the channel graph that will be used to gather metrics from
+	// and also to carry out path finding queries.
+	Graph *channeldb.ChannelGraph
+
+	// QueryBandwidth is a method that allows querying the lower link layer
+	// to determine the up to date available bandwidth at a prospective link
+	// to be traversed. If the link isn't available, then a value of zero
+	// should be returned. Otherwise, the current up to date knowledge of
+	// the available bandwidth of the link should be returned.
+	QueryBandwidth func(*channeldb.ChannelEdgeInfo) lnwire.MilliSatoshi
+
+	// SelfNode is our own node.
+	SelfNode *channeldb.LightningNode
+
+	// MissionControl is a shared memory of sorts that executions of payment
+	// path finding use in order to remember which vertexes/edges were
+	// pruned from prior attempts. During payment execution, errors sent by
+	// nodes are mapped into a vertex or edge to be pruned. Each run will
+	// then take into account this set of pruned vertexes/edges to reduce
+	// route failure and pass on graph information gained to the next
+	// execution.
+	MissionControl MissionController
+
+	// PaymentAttemptPenalty is the virtual cost in path finding weight
+	// units of executing a payment attempt that fails. It is used to trade
+	// off potentially better routes against their probability of
+	// succeeding.
+	PaymentAttemptPenalty lnwire.MilliSatoshi
+
+	// MinProbability defines the minimum success probability of the
+	// returned route.
+	MinRouteProbability float64
+}
+
+// NewPaymentSession creates a new payment session backed by the latest prune
+// view from Mission Control. An optional set of routing hints can be provided
+// in order to populate additional edges to explore when finding a path to the
+// payment's destination.
+func (m *SessionSource) NewPaymentSession(routeHints [][]zpay32.HopHint,
+	target route.Vertex) (PaymentSession, error) {
+
+	edges := make(map[route.Vertex][]*channeldb.ChannelEdgePolicy)
+
+	// Traverse through all of the available hop hints and include them in
+	// our edges map, indexed by the public key of the channel's starting
+	// node.
+	for _, routeHint := range routeHints {
+		// If multiple hop hints are provided within a single route
+		// hint, we'll assume they must be chained together and sorted
+		// in forward order in order to reach the target successfully.
+		for i, hopHint := range routeHint {
+			// In order to determine the end node of this hint,
+			// we'll need to look at the next hint's start node. If
+			// we've reached the end of the hints list, we can
+			// assume we've reached the destination.
+			endNode := &channeldb.LightningNode{}
+			if i != len(routeHint)-1 {
+				endNode.AddPubKey(routeHint[i+1].NodeID)
+			} else {
+				targetPubKey, err := btcec.ParsePubKey(
+					target[:], btcec.S256(),
+				)
+				if err != nil {
+					return nil, err
+				}
+				endNode.AddPubKey(targetPubKey)
+			}
+
+			// Finally, create the channel edge from the hop hint
+			// and add it to list of edges corresponding to the node
+			// at the start of the channel.
+			edge := &channeldb.ChannelEdgePolicy{
+				Node:      endNode,
+				ChannelID: hopHint.ChannelID,
+				FeeBaseMSat: lnwire.MilliSatoshi(
+					hopHint.FeeBaseMSat,
+				),
+				FeeProportionalMillionths: lnwire.MilliSatoshi(
+					hopHint.FeeProportionalMillionths,
+				),
+				TimeLockDelta: hopHint.CLTVExpiryDelta,
+			}
+
+			v := route.NewVertex(hopHint.NodeID)
+			edges[v] = append(edges[v], edge)
+		}
+	}
+
+	// We'll also obtain a set of bandwidthHints from the lower layer for
+	// each of our outbound channels. This will allow the path finding to
+	// skip any links that aren't active or just don't have enough
+	// bandwidth to carry the payment.
+	sourceNode, err := m.Graph.SourceNode()
+	if err != nil {
+		return nil, err
+	}
+	bandwidthHints, err := generateBandwidthHints(
+		sourceNode, m.QueryBandwidth,
+	)
+	if err != nil {
+		return nil, err
+	}
+
+	return &paymentSession{
+		additionalEdges: edges,
+		bandwidthHints:  bandwidthHints,
+		sessionSource:   m,
+		pathFinder:      findPath,
+	}, nil
+}
+
+// NewPaymentSessionForRoute creates a new paymentSession instance that is just
+// used for failure reporting to missioncontrol.
+func (m *SessionSource) NewPaymentSessionForRoute(preBuiltRoute *route.Route) PaymentSession {
+	return &paymentSession{
+		sessionSource: m,
+		preBuiltRoute: preBuiltRoute,
+	}
+}
+
+// NewPaymentSessionEmpty creates a new paymentSession instance that is empty,
+// and will be exhausted immediately. Used for failure reporting to
+// missioncontrol for resumed payment we don't want to make more attempts for.
+func (m *SessionSource) NewPaymentSessionEmpty() PaymentSession {
+	return &paymentSession{
+		sessionSource:      m,
+		preBuiltRoute:      &route.Route{},
+		preBuiltRouteTried: true,
+	}
+}
diff --git a/routing/payment_session_test.go b/routing/payment_session_test.go
index a5ee7889..33070fbd 100644
--- a/routing/payment_session_test.go
+++ b/routing/payment_session_test.go
@@ -32,12 +32,16 @@ func TestRequestRoute(t *testing.T) {
 		return path, nil
 	}
 
-	session := &paymentSession{
-		mc: &MissionControl{
-			selfNode: &channeldb.LightningNode{},
-			cfg:      &MissionControlConfig{},
+	sessionSource := &SessionSource{
+		SelfNode: &channeldb.LightningNode{},
+		MissionControl: &MissionControl{
+			cfg: &MissionControlConfig{},
 		},
-		pathFinder: findPath,
+	}
+
+	session := &paymentSession{
+		sessionSource: sessionSource,
+		pathFinder:    findPath,
 	}
 
 	cltvLimit := uint32(30)
diff --git a/routing/router.go b/routing/router.go
index 87bb5c75..4df236d5 100644
--- a/routing/router.go
+++ b/routing/router.go
@@ -171,6 +171,25 @@ type PaymentSessionSource interface {
 	NewPaymentSessionEmpty() PaymentSession
 }
 
+// MissionController is an interface that exposes failure reporting and
+// probability estimation.
+type MissionController interface {
+	// ReportEdgeFailure reports a channel level failure.
+	ReportEdgeFailure(failedEdge edge,
+		minPenalizeAmt lnwire.MilliSatoshi)
+
+	// ReportEdgePolicyFailure reports a policy related failure.
+	ReportEdgePolicyFailure(failedEdge edge)
+
+	// ReportVertexFailure reports a node level failure.
+	ReportVertexFailure(v route.Vertex)
+
+	// GetEdgeProbability is expected to return the success probability of a
+	// payment from fromNode along edge.
+	GetEdgeProbability(fromNode route.Vertex, edge EdgeLocator,
+		amt lnwire.MilliSatoshi) float64
+}
+
 // FeeSchema is the set fee configuration for a Lightning Node on the network.
 // Using the coefficients described within the schema, the required fee to
 // forward outgoing payments can be derived.
@@ -234,7 +253,11 @@ type Config struct {
 	// Each run will then take into account this set of pruned
 	// vertexes/edges to reduce route failure and pass on graph information
 	// gained to the next execution.
-	MissionControl PaymentSessionSource
+	MissionControl MissionController
+
+	// SessionSource defines a source for the router to retrieve new payment
+	// sessions.
+	SessionSource PaymentSessionSource
 
 	// ChannelPruneExpiry is the duration used to determine if a channel
 	// should be pruned or not. If the delta between now and when the
@@ -544,7 +567,7 @@ func (r *ChannelRouter) Start() error {
 			//
 			// PayAttemptTime doesn't need to be set, as there is
 			// only a single attempt.
-			paySession := r.cfg.MissionControl.NewPaymentSessionEmpty()
+			paySession := r.cfg.SessionSource.NewPaymentSessionEmpty()
 
 			lPayment := &LightningPayment{
 				PaymentHash: payment.Info.PaymentHash,
@@ -1651,7 +1674,7 @@ func (r *ChannelRouter) preparePayment(payment *LightningPayment) (
 	// Before starting the HTLC routing attempt, we'll create a fresh
 	// payment session which will report our errors back to mission
 	// control.
-	paySession, err := r.cfg.MissionControl.NewPaymentSession(
+	paySession, err := r.cfg.SessionSource.NewPaymentSession(
 		payment.RouteHints, payment.Target,
 	)
 	if err != nil {
@@ -1682,7 +1705,7 @@ func (r *ChannelRouter) SendToRoute(hash lntypes.Hash, route *route.Route) (
 	lntypes.Preimage, error) {
 
 	// Create a payment session for just this route.
-	paySession := r.cfg.MissionControl.NewPaymentSessionForRoute(route)
+	paySession := r.cfg.SessionSource.NewPaymentSessionForRoute(route)
 
 	// Calculate amount paid to receiver.
 	amt := route.TotalAmount - route.TotalFees()
@@ -1806,13 +1829,54 @@ func (r *ChannelRouter) sendPayment(
 
 }
 
+// tryApplyChannelUpdate tries to apply a channel update present in the failure
+// message if any.
+func (r *ChannelRouter) tryApplyChannelUpdate(rt *route.Route,
+	errorSourceIdx int, failure lnwire.FailureMessage) error {
+
+	// It makes no sense to apply our own channel updates.
+	if errorSourceIdx == 0 {
+		log.Errorf("Channel update of ourselves received")
+
+		return nil
+	}
+
+	// Extract channel update if the error contains one.
+	update := r.extractChannelUpdate(failure)
+	if update == nil {
+		return nil
+	}
+
+	// Parse pubkey to allow validation of the channel update. This should
+	// always succeed, otherwise there is something wrong in our
+	// implementation. Therefore return an error.
+	errVertex := rt.Hops[errorSourceIdx-1].PubKeyBytes
+	errSource, err := btcec.ParsePubKey(
+		errVertex[:], btcec.S256(),
+	)
+	if err != nil {
+		log.Errorf("Cannot parse pubkey: idx=%v, pubkey=%v",
+			errorSourceIdx, errVertex)
+
+		return err
+	}
+
+	// Apply channel update.
+	if !r.applyChannelUpdate(update, errSource) {
+		log.Debugf("Invalid channel update received: node=%x",
+			errVertex)
+	}
+
+	return nil
+}
+
 // processSendError analyzes the error for the payment attempt received from the
 // switch and updates mission control and/or channel policies. Depending on the
 // error type, this error is either the final outcome of the payment or we need
 // to continue with an alternative route. This is indicated by the boolean
 // return value.
-func (r *ChannelRouter) processSendError(paySession PaymentSession,
-	rt *route.Route, sendErr error) (bool, channeldb.FailureReason) {
+func (r *ChannelRouter) processSendError(rt *route.Route, sendErr error) (
+	bool, channeldb.FailureReason) {
 
 	// If the failure message could not be decrypted, attribute the failure
 	// to our own outgoing channel.
@@ -1831,32 +1895,28 @@ func (r *ChannelRouter) processSendError(paySession PaymentSession,
 		return true, channeldb.FailureReasonError
 	}
 
-	var (
-		failureSourceIdx = fErr.FailureSourceIdx
+	failureMessage := fErr.FailureMessage
+	failureSourceIdx := fErr.FailureSourceIdx
 
-		failureVertex route.Vertex
-		failureSource *btcec.PublicKey
-		err           error
-	)
+	// Apply channel update if the error contains one. For unknown
+	// failures, failureMessage is nil.
+	if failureMessage != nil {
+		err := r.tryApplyChannelUpdate(
+			rt, failureSourceIdx, failureMessage,
+		)
+		if err != nil {
+			return true, channeldb.FailureReasonError
+		}
+	}
+
+	var failureVertex route.Vertex
 
 	// For any non-self failure, look up the source pub key in the hops
 	// slice. Otherwise return the self node pubkey.
 	if failureSourceIdx > 0 {
 		failureVertex = rt.Hops[failureSourceIdx-1].PubKeyBytes
-		failureSource, err = btcec.ParsePubKey(failureVertex[:], btcec.S256())
-		if err != nil {
-			log.Errorf("Cannot parse pubkey %v: %v",
-				failureVertex, err)
-
-			return true, channeldb.FailureReasonError
-		}
 	} else {
 		failureVertex = r.selfNode.PubKeyBytes
-		failureSource, err = r.selfNode.PubKey()
-		if err != nil {
-			log.Errorf("Cannot parse self pubkey: %v", err)
-			return true, channeldb.FailureReasonError
-		}
 	}
 	log.Tracef("Node %x (index %v) reported failure when sending htlc",
 		failureVertex, failureSourceIdx)
@@ -1865,41 +1925,7 @@ func (r *ChannelRouter) processSendError(paySession PaymentSession,
 	// update with id may not be available.
 	failedEdge, failedAmt := getFailedEdge(rt, failureSourceIdx)
 
-	// processChannelUpdateAndRetry is a closure that
-	// handles a failure message containing a channel
-	// update. This function always tries to apply the
-	// channel update and passes on the result to the
-	// payment session to adjust its view on the reliability
-	// of the network.
-	//
-	// As channel id, the locally determined channel id is
-	// used. It does not rely on the channel id that is part
-	// of the channel update message, because the remote
-	// node may lie to us or the update may be corrupt.
-	processChannelUpdateAndRetry := func(
-		update *lnwire.ChannelUpdate,
-		pubKey *btcec.PublicKey) {
-
-		// Try to apply the channel update.
-		updateOk := r.applyChannelUpdate(update, pubKey)
-
-		// If the update could not be applied, prune the
-		// edge. There is no reason to continue trying
-		// this channel.
-		//
-		// TODO: Could even prune the node completely?
-		// Or is there a valid reason for the channel
-		// update to fail?
-		if !updateOk {
-			paySession.ReportEdgeFailure(
-				failedEdge, 0,
-			)
-		}
-
-		paySession.ReportEdgePolicyFailure(failedEdge)
-	}
-
-	switch onionErr := fErr.FailureMessage.(type) {
+	switch fErr.FailureMessage.(type) {
 
 	// If the end destination didn't know the payment
 	// hash or we sent the wrong payment amount to the
@@ -1955,8 +1981,7 @@ func (r *ChannelRouter) processSendError(paySession PaymentSession,
 	// that sent us this error, as it doesn't now what the
 	// correct block height is.
 	case *lnwire.FailExpiryTooSoon:
-		r.applyChannelUpdate(&onionErr.Update, failureSource)
-		paySession.ReportVertexFailure(failureVertex)
+		r.cfg.MissionControl.ReportVertexFailure(failureVertex)
 		return false, 0
 
 	// If we hit an instance of onion payload corruption or an invalid
@@ -1976,57 +2001,49 @@ func (r *ChannelRouter) processSendError(paySession PaymentSession,
 	// amount, we'll apply the new minimum amount and retry
 	// routing.
 	case *lnwire.FailAmountBelowMinimum:
-		processChannelUpdateAndRetry(
-			&onionErr.Update, failureSource,
-		)
+		r.cfg.MissionControl.ReportEdgePolicyFailure(failedEdge)
 		return false, 0
 
 	// If we get a failure due to a fee, we'll apply the
 	// new fee update, and retry our attempt using the
 	// newly updated fees.
 	case *lnwire.FailFeeInsufficient:
-		processChannelUpdateAndRetry(
-			&onionErr.Update, failureSource,
-		)
+		r.cfg.MissionControl.ReportEdgePolicyFailure(failedEdge)
 		return false, 0
 
 	// If we get the failure for an intermediate node that
 	// disagrees with our time lock values, then we'll
 	// apply the new delta value and try it once more.
 	case *lnwire.FailIncorrectCltvExpiry:
-		processChannelUpdateAndRetry(
-			&onionErr.Update, failureSource,
-		)
+		r.cfg.MissionControl.ReportEdgePolicyFailure(failedEdge)
 		return false, 0
 
 	// The outgoing channel that this node was meant to
 	// forward one is currently disabled, so we'll apply
 	// the update and continue.
 	case *lnwire.FailChannelDisabled:
-		r.applyChannelUpdate(&onionErr.Update, failureSource)
-		paySession.ReportEdgeFailure(failedEdge, 0)
+		r.cfg.MissionControl.ReportEdgeFailure(failedEdge, 0)
 		return false, 0
 
 	// It's likely that the outgoing channel didn't have
 	// sufficient capacity, so we'll prune this edge for
 	// now, and continue onwards with our path finding.
 	case *lnwire.FailTemporaryChannelFailure:
-		r.applyChannelUpdate(onionErr.Update, failureSource)
-		paySession.ReportEdgeFailure(failedEdge, failedAmt)
+		r.cfg.MissionControl.ReportEdgeFailure(failedEdge, failedAmt)
 		return false, 0
 
 	// If the send fail due to a node not having the
 	// required features, then we'll note this error and
 	// continue.
 	case *lnwire.FailRequiredNodeFeatureMissing:
-		paySession.ReportVertexFailure(failureVertex)
+		r.cfg.MissionControl.ReportVertexFailure(failureVertex)
 		return false, 0
 
 	// If the send fail due to a node not having the
 	// required features, then we'll note this error and
 	// continue.
 	case *lnwire.FailRequiredChannelFeatureMissing:
-		paySession.ReportVertexFailure(failureVertex)
+		r.cfg.MissionControl.ReportVertexFailure(failureVertex)
 		return false, 0
 
 	// If the next hop in the route wasn't known or
@@ -2037,18 +2054,18 @@ func (r *ChannelRouter) processSendError(paySession PaymentSession,
 	// returning errors in order to attempt to black list
 	// another node.
 	case *lnwire.FailUnknownNextPeer:
-		paySession.ReportEdgeFailure(failedEdge, 0)
+		r.cfg.MissionControl.ReportEdgeFailure(failedEdge, 0)
 		return false, 0
 
 	// If the node wasn't able to forward for which ever
 	// reason, then we'll note this and continue with the
 	// routes.
 	case *lnwire.FailTemporaryNodeFailure:
-		paySession.ReportVertexFailure(failureVertex)
+		r.cfg.MissionControl.ReportVertexFailure(failureVertex)
 		return false, 0
 
 	case *lnwire.FailPermanentNodeFailure:
-		paySession.ReportVertexFailure(failureVertex)
+		r.cfg.MissionControl.ReportVertexFailure(failureVertex)
 		return false, 0
 
 	// If we crafted a route that contains a too long time
@@ -2061,15 +2078,15 @@ func (r *ChannelRouter) processSendError(paySession PaymentSession,
 	// that as a hint during future path finding through
 	// that node.
 	case *lnwire.FailExpiryTooFar:
-		paySession.ReportVertexFailure(failureVertex)
+		r.cfg.MissionControl.ReportVertexFailure(failureVertex)
 		return false, 0
 
 	// If we get a permanent channel or node failure, then
 	// we'll prune the channel in both directions and
 	// continue with the rest of the routes.
 	case *lnwire.FailPermanentChannelFailure:
-		paySession.ReportEdgeFailure(failedEdge, 0)
-		paySession.ReportEdgeFailure(edge{
+		r.cfg.MissionControl.ReportEdgeFailure(failedEdge, 0)
+		r.cfg.MissionControl.ReportEdgeFailure(edge{
 			from:    failedEdge.to,
 			to:      failedEdge.from,
 			channel: failedEdge.channel,
@@ -2078,11 +2095,34 @@ func (r *ChannelRouter) processSendError(paySession PaymentSession,
 
 	// Any other failure or an empty failure will get the node pruned.
 	default:
-		paySession.ReportVertexFailure(failureVertex)
+		r.cfg.MissionControl.ReportVertexFailure(failureVertex)
 		return false, 0
 	}
 }
 
+// extractChannelUpdate examines the error and extracts the channel update.
+func (r *ChannelRouter) extractChannelUpdate(
+	failure lnwire.FailureMessage) *lnwire.ChannelUpdate {
+
+	var update *lnwire.ChannelUpdate
+	switch onionErr := failure.(type) {
+	case *lnwire.FailExpiryTooSoon:
+		update = &onionErr.Update
+	case *lnwire.FailAmountBelowMinimum:
+		update = &onionErr.Update
+	case *lnwire.FailFeeInsufficient:
+		update = &onionErr.Update
+	case *lnwire.FailIncorrectCltvExpiry:
+		update = &onionErr.Update
+	case *lnwire.FailChannelDisabled:
+		update = &onionErr.Update
+	case *lnwire.FailTemporaryChannelFailure:
+		update = onionErr.Update
+	}
+
+	return update
+}
+
 // getFailedEdge tries to locate the failing channel given a route and the
 // pubkey of the node that sent the failure. It will assume that the failure is
 // associated with the outgoing channel of the failing node. As a second result,
@@ -2127,11 +2167,6 @@ func getFailedEdge(route *route.Route, failureSource int) (edge,
 // database. It returns a bool indicating whether the updates was successful.
 func (r *ChannelRouter) applyChannelUpdate(msg *lnwire.ChannelUpdate,
 	pubKey *btcec.PublicKey) bool {
-	// If we get passed a nil channel update (as it's optional with some
-	// onion errors), then we'll exit early with a success result.
-	if msg == nil {
-		return true
-	}
 
 	ch, _, _, err := r.GetChannelByID(msg.ShortChannelID)
 	if err != nil {
@@ -2410,3 +2445,38 @@ func (r *ChannelRouter) IsStaleEdgePolicy(chanID lnwire.ShortChannelID,
 func (r *ChannelRouter) MarkEdgeLive(chanID lnwire.ShortChannelID) error {
 	return r.cfg.Graph.MarkEdgeLive(chanID.ToUint64())
 }
+
+// generateBandwidthHints is a helper function that's utilized the main
+// findPath function in order to obtain hints from the lower layer w.r.t to the
+// available bandwidth of edges on the network. Currently, we'll only obtain
+// bandwidth hints for the edges we directly have open ourselves. Obtaining
+// these hints allows us to reduce the number of extraneous attempts as we can
+// skip channels that are inactive, or just don't have enough bandwidth to
+// carry the payment.
+func generateBandwidthHints(sourceNode *channeldb.LightningNode,
+	queryBandwidth func(*channeldb.ChannelEdgeInfo) lnwire.MilliSatoshi) (map[uint64]lnwire.MilliSatoshi, error) {
+
+	// First, we'll collect the set of outbound edges from the target
+	// source node.
+	var localChans []*channeldb.ChannelEdgeInfo
+	err := sourceNode.ForEachChannel(nil, func(tx *bbolt.Tx,
+		edgeInfo *channeldb.ChannelEdgeInfo,
+		_, _ *channeldb.ChannelEdgePolicy) error {
+
+		localChans = append(localChans, edgeInfo)
+		return nil
+	})
+	if err != nil {
+		return nil, err
+	}
+
+	// Now that we have all of our outbound edges, we'll populate the set
+	// of bandwidth hints, querying the lower switch layer for the most up
+	// to date values.
+	bandwidthHints := make(map[uint64]lnwire.MilliSatoshi)
+	for _, localChan := range localChans {
+		bandwidthHints[localChan.ChannelID] = queryBandwidth(localChan)
+	}
+
+	return bandwidthHints, nil
+}
diff --git a/routing/router_test.go b/routing/router_test.go
index c50dba1c..bc71cfc9 100644
--- a/routing/router_test.go
+++ b/routing/router_test.go
@@ -91,17 +91,23 @@ func createTestCtxFromGraphInstance(startingHeight uint32, graphInstance *testGr
 	}
 
 	mc := NewMissionControl(
-		graphInstance.graph, selfNode,
-		func(e *channeldb.ChannelEdgeInfo) lnwire.MilliSatoshi {
-			return lnwire.NewMSatFromSatoshis(e.Capacity)
-		},
 		&MissionControlConfig{
-			MinRouteProbability:   0.01,
-			PaymentAttemptPenalty: 100,
 			PenaltyHalfLife:       time.Hour,
 			AprioriHopProbability: 0.9,
 		},
 	)
+
+	sessionSource := &SessionSource{
+		Graph:    graphInstance.graph,
+		SelfNode: selfNode,
+		QueryBandwidth: func(e *channeldb.ChannelEdgeInfo) lnwire.MilliSatoshi {
+			return lnwire.NewMSatFromSatoshis(e.Capacity)
+		},
+		MinRouteProbability:   0.01,
+		PaymentAttemptPenalty: 100,
+		MissionControl:        mc,
+	}
+
 	router, err := New(Config{
 		Graph:              graphInstance.graph,
 		Chain:              chain,
@@ -109,6 +115,7 @@ func createTestCtxFromGraphInstance(startingHeight uint32, graphInstance *testGr
 		Payer:              &mockPaymentAttemptDispatcher{},
 		Control:            makeMockControlTower(),
 		MissionControl:     mc,
+		SessionSource:      sessionSource,
 		ChannelPruneExpiry: time.Hour * 24,
 		GraphPruneInterval: time.Hour * 2,
 		QueryBandwidth: func(e *channeldb.ChannelEdgeInfo) lnwire.MilliSatoshi {
@@ -2940,7 +2947,7 @@ func TestRouterPaymentStateMachine(t *testing.T) {
 			Chain:              chain,
 			ChainView:          chainView,
 			Control:            control,
-			MissionControl:     &mockPaymentSessionSource{},
+			SessionSource:      &mockPaymentSessionSource{},
 			Payer:              payer,
 			ChannelPruneExpiry: time.Hour * 24,
 			GraphPruneInterval: time.Hour * 2,
@@ -3004,10 +3011,12 @@ func TestRouterPaymentStateMachine(t *testing.T) {
 
 		copy(preImage[:], bytes.Repeat([]byte{9}, 32))
 
-		router.cfg.MissionControl = &mockPaymentSessionSource{
+		router.cfg.SessionSource = &mockPaymentSessionSource{
 			routes: test.routes,
 		}
 
+		router.cfg.MissionControl = &mockMissionControl{}
+
 		// Send the payment. Since this is new payment hash, the
 		// information should be registered with the ControlTower.
 		paymentResult := make(chan error)
diff --git a/server.go b/server.go
index 88204d81..64b37666 100644
--- a/server.go
+++ b/server.go
@@ -652,11 +652,29 @@ func newServer(listenAddrs []net.Addr, chanDB *channeldb.DB,
 	//
 	// TODO(joostjager): When we are further in the process of moving to sub
 	// servers, the mission control instance itself can be moved there too.
+	routingConfig := routerrpc.GetRoutingConfig(cfg.SubRPCServers.RouterRPC)
+
 	s.missionControl = routing.NewMissionControl(
-		chanGraph, selfNode, queryBandwidth,
-		routerrpc.GetMissionControlConfig(cfg.SubRPCServers.RouterRPC),
+		&routing.MissionControlConfig{
+			AprioriHopProbability: routingConfig.AprioriHopProbability,
+			PenaltyHalfLife:       routingConfig.PenaltyHalfLife,
+		},
 	)
 
+	srvrLog.Debugf("Instantiating payment session source with config: "+
+		"PaymentAttemptPenalty=%v, MinRouteProbability=%v",
+		int64(routingConfig.PaymentAttemptPenalty.ToSatoshis()),
+		routingConfig.MinRouteProbability)
+
+	paymentSessionSource := &routing.SessionSource{
+		Graph:                 chanGraph,
+		MissionControl:        s.missionControl,
+		QueryBandwidth:        queryBandwidth,
+		SelfNode:              selfNode,
+		PaymentAttemptPenalty: routingConfig.PaymentAttemptPenalty,
+		MinRouteProbability:   routingConfig.MinRouteProbability,
+	}
+
 	paymentControl := channeldb.NewPaymentControl(chanDB)
 
 	s.controlTower = routing.NewControlTower(paymentControl)
@@ -668,6 +686,7 @@ func newServer(listenAddrs []net.Addr, chanDB *channeldb.DB,
 		Payer:              s.htlcSwitch,
 		Control:            s.controlTower,
 		MissionControl:     s.missionControl,
+		SessionSource:      paymentSessionSource,
 		ChannelPruneExpiry: routing.DefaultChannelPruneExpiry,
 		GraphPruneInterval: time.Duration(time.Hour),
 		QueryBandwidth:     queryBandwidth,