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April 24
BSA/AML Compliance: Writing the SAR Narrative
Ken Golliher

April 29
HSA Basics
Whitney Johnson

April 29
Required Training for Loan Originators
Mary Beth Guard and Jack Holzknecht

May 13
Overdraft Practices in Today's Regulatory Environment
John Burnett

May 14
Reg E Claims - Allocating Liability Correctly
Andy Zavoina

May 15
Managing Electronic Information - From A to Zettabyte
Fred Menge



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.

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

Registered: 07/16/01
Posts: 48565
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.

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#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.

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

Registered: 07/16/01
Posts: 48565
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.

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