Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network



October 22
Advanced Visa Error Resolution;
Biran Crow

October 23
Advanced MasterCard Error Resolution;
Brian Crow

October 24
How to Audit Advertising - Compliance Issues Here, There, Everywhere!;
Patricia Cashman

October 29
Documenting an Applicant's Intent to be a Joint Applicant;
David Dickinson

November 4
Issues with Deceased Customers;
Mary Beth Guard and John Burnett

November 5
Vault Burglaries, Floods, Fires & Other Disasters;
Dave McGuinn



Topic Options
#1078528 - 11/07/08 09:19 AM Escrow Shortage
Rosebud123 Offline
Platinum Poster

Registered: 10/09/03
Posts: 645
Loc: Florida
If a client has an escrow shortage can we give them a loan for the shortage and charge interest. Commercial or Residential?

I am thinking that residential we cannot.

Top
Lending Compliance
#1078568 - 11/07/08 09:41 AM Re: Escrow Shortage [Re: Rosebud123]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
You have to follow the escrow rules in RESPA for residential loans subject to RESPA.

Commercial is wide open unless prohibited by State law. I guess if someone can't pay thier escrows, I would question why you would make them another loan?
_________________________
The opinions expressed are my own, take them or leave them.

Top
#1078577 - 11/07/08 09:46 AM Re: Escrow Shortage [Re: rlcarey]
Rosebud123 Offline
Platinum Poster

Registered: 10/09/03
Posts: 645
Loc: Florida
good point. What the lender wanted to do is increase the loan amount if the bank pays for the taxes.

Top
#1078622 - 11/07/08 10:07 AM Re: Escrow Shortage [Re: Rosebud123]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 50412
Loc: Galveston, TX
If you are talking about a commercial loan, you would have to look to your loan contract or escrow agreement for guidance.

It would be prohibited under RESPA.
_________________________
The opinions expressed are my own, take them or leave them.

Top


Moderator:  Andy Z