Answer:
Answer by David Dickinson:One is required by TIL and one is required by RESPA. You can do them at the same time by issuing a short year statement that allows you to change the timing of the RESPA computation year to match the ARM loan changes. Then you can send both at the same time.
Answer:
Answer by Dan Persfull:You have to send an annual escrow analysis as long as the account is not more than thirty days past due. If your rate adjusts on an annual basis, you could do a short year analysis to adjust the annual escrow analysis computation year to coincide with the annual rate adjustment. However, if the rate does not adjust for three years, then you must send the annual escrow analysis.
The rate adjustment and the annual escrow analysis both have specific language and disclosure requirements. You will need to make sure both are met. I know you can include the escrow analysis with other material, but you will need to double check 3500.17 to see if it can be combined with another disclosure. Due to the required disclosure requirements for both statements, it may be more confusing for your borrowers to send them together rather than separately.
First published on BankersOnline.com 5/03/10
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