Answer:
by Randy Carey:
1024.17(f)(2) Surpluses. (i) If an escrow account analysis discloses a surplus, the servicer shall, within 30 days from the date of the analysis, refund the surplus to the borrower if the surplus is greater than or equal to 50 dollars ($50). If the surplus is less than 50 dollars ($50), the servicer may refund such amount to the borrower, or credit such amount against the next year's escrow payments.
If you are not sending them a check, then how are you planning to refund the funds. I suppose, if the consumer specifically designated an account to credit, you might be able to do a direct deposit.
Answer:
by Andy Zavoina:
The cleanest and most transparent way to show the overage was paid is with a check from the bank to the borrower. This also avoids potential issues in the future. Say he and she had a joint deposit and a joint loan. Post divorce, the bank deposits the surplus from a now single loan into a now single deposit account and the two are not the same. I know this couldn't happen in your bank because you don't remove a deposit owner, but it happens in some banks.
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