Here’s what’s in the new CFPB FAQ on Escrow Rules

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The FAQ clarifies that if the shortfall is equal to or greater than the borrower’s usual monthly escrow payment, it can be addressed with a lump sum, unsolicited lump sum. It also states that since the Real Estate Settlement Procedures Act does not regulate whether a borrower can make an unsolicited payment, this would not be considered a violation of the applicable provision.

“However, the service staff cannot require or provide the option of a lump sum on an annual escrow statement,” the FAQ says. “An annual escrow statement that reflects an analysis of the escrow account may indicate that a deficit may exist or that the borrower may pay the deficit in equal monthly installments over a period of at least 12 months.”



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