we are starting to escrow for taxes during the construction phase. For a closing on Friday we will be collecting 12 months of tax escrow, this will be disclosed on the HUD.

Do we have to include this in the finance charge as well? And if so, do we show it on the construction TIL’s (we disclose for construction and permanent separately).

or do we just simply disclose this on the initial escrow notice?

RE Taxes would not be considered finance charges.

A full year seems a little much - depending on how your taxes are paid - quarterly, semi-annually, or annually will make a difference on what you are allowed to escrow.

If you do not have an Escrow Analysis tool, David Dickinson has a very good one that can be downloaded from here .