Click to return to BOL home page



July 29
W-9, W-8BEN and W-8 BENE: IRS issues new forms and new rules;
Deborah Crawford

July 31
ACH Security Framework Rule - Small Rule, Big Implications;
Rayleen Pirnie

August 6
Part I
Flood Insurance: Requirements and Best Practices
A Two-Part Companion Webinar Series;
David Dickinson and Jerod Moyer

August 12
A to Z of Reg E;
Andy Zavoina

August 13
Part II
Flood Insurance: Requirements and Best Practices
A Two-Part Companion Webinar Series;
David Dickinson and Jerod Moyer



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: 49444
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: 49444
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