We have noticed that there is no verbiage on our note outlining the Escrow terms. A further investigation uncovered that the Deed of Trust has a line item which states:

ESCROW FOR TAXES AND INSURANCE - Unless otherwise provided in a separate agreement, Grantor will not be required to pay to Lender funds for taxes and insurance in escrow.

This is a Tennessee Deed. Does anyone else have this issue? If so, did you create a separate disclosure or simply use another Deed of Trust?

Any guidance will be appreciated!

In this case you would want to use an escrow agreement, sometimes referred to as an impound agreement. IMO, it is advisable to use such an agreement in all cases where an escrow account is established, whether mandatory or voluntarily.

Contact your forms vendor, they should be able to provide you with one.

Thanks Dan, I appreciate your help! I will contact our loan platform vendor.