Deducting Escrow Balance from the Principal
Answer by Randy Carey, BOL Guru Guru Bio
Question: Are creditors allowed to deduct escrow balance from the principal when the loan pays off? The outside auditors we use for Compliance review is saying it is acceptable but when I went to Bankers online I get a different response. Which is correct?
Answer: You are back to the BOL gurus that answered your question in the general forums where you asked the same question.
David Dickinson provided you the proper answer. I suggest that you find a new consultant or have them give you the regulatory basis for their statement, as was suggested in that thread. David already gave you his basis for his opinion and it was straight out of RESPA.
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