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Max Escrow Cushion

Answered by: 

Question: 
How do we know when a cushion is allowed?
Answer: 

Your loan documents will indicate if a cushion is to be kept, and in what amount. RESPA tells us a 1/6th of anticipated payments cushion is permitted, but your documents should also provide for the cushion. And don’t forget state laws, which could be more restrictive than RESPA.

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Learn more about Andy Zavoina’s webinar Escrows, Yes, it’s that time again

First published on 10/18/2020

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