{"id":1660,"date":"2019-04-18T18:02:18","date_gmt":"2019-04-18T18:02:18","guid":{"rendered":"https:\/\/albanknews.com\/?p=1660"},"modified":"2019-04-18T18:03:05","modified_gmt":"2019-04-18T18:03:05","slug":"compliance-qa-escrow-considerations","status":"publish","type":"post","link":"https:\/\/albanknews.com\/?p=1660","title":{"rendered":"Compliance Q&A: Escrow Considerations"},"content":{"rendered":"

Question:<\/strong><\/p>\n

We escrow for taxes and insurance. This is not an HPML loan nor is flood insurance required in this situation. The taxes, with respect to this loan, are subject to a continual homestead credit that exceeds the tax charge. So, year after year, the amount via escrow that is owed is $0.00. The bank would like to collect a small amount as a cushion in case the taxes increase over the established credit. We don\u2019t necessarily anticipate the taxes to increase, though. Can we do this?<\/p>\n

Answer:<\/strong><\/p>\n

12 CFR 1024.17(c)(ii): https:\/\/www.consumerfinance.gov\/policy-compliance\/rulemaking\/regulations\/1024\/17\/#c-1-ii <\/a>\u00a0– (1) A lender or servicer (hereafter servicer) shall not require a borrower to deposit into any escrow account, created in connection with a federally related mortgage loan, more than the following amounts:<\/em><\/p>\n

(ii) Charges during the life of the escrow account. Throughout the life of an escrow account, the servicer may charge the borrower a monthly sum equal to one-twelfth (1\/12) of the total annual escrow payments which the servicer reasonably anticipates paying from the account. In addition, the servicer may add an amount to maintain a cushion no greater than one-sixth (1\/6) of the estimated total annual payments from the account.<\/em><\/p>\n

\n

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call (888) 353-3933 or email info@compliancealliance.com<\/a>.<\/u><\/strong><\/p>\n

Not a member? <\/u><\/strong>Learn more about membership with Compliance Alliance by attending one of our live demos:<\/p>\n