Latest Compliance - Escrow Topics

Flood Insurance Premium New Rule (Escrow)

02/07/2016

With the escrow ruling becoming effective January 1, 2016, does anybody have any sample correspondence that they are sending to their borrowers explaining this new rule and the requirement to escrow their flood insurance premium?

Sample Correspondence: Flood Insurance Premium

01/10/2016

Borrower Consistently Past Due on Taxes (Escrow)

12/06/2015

We have a borrower who is consistently past due on the taxes for the collateral on our loan. In the past we have advanced the amounts due on the principal balance and re-amortized the payments. Now we are discussing setting up an escrow account on this loan. Are we prohibited from advancing the initial deposit for the escrow account on the loan?

Model Letter for Extending Offer to Escrow (Flood)

10/11/2015

Is there a model letter that is available to send to borrowers to extend the offer to escrow for flood insurance on their loans, if the loan is still outstanding on 12/31/15?

Escrow on 2nd Property if Not Part of Collateral

04/27/2015

We have a mortgage on a certain property with borrower and escrow. We have an equity on a different property with the same borrower. Question: can we set up escrow for the 2nd property on the 1st loan even though it is not part of the collateral?

Escrow Increase But Monthly Payment Does Not

08/18/2014

We viewed the webinar All About Escrows the other day and today a rare question was asked. An escrow analysis was done in 2013 and escrows increased but the total monthly payment did not. There was glitch in our system and because the system recognized the increase of escrow it took a portion of the total monthly payment and applied it into the escrow account so that the correct amount was going in; however the amount being taken was being taken from what should have been going towards the principal. Can we take the amount out of the escrow account now almost a year later and put it towards the principal as it should have been and charge the shortage that would result in the escrow account to the customer over 24 month or does the bank take a loss?