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#1355492 - 03/10/10 10:06 PM Escrow Set-Up Fee
Nanee Offline
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Joined: Jan 2004
Posts: 12
Does anyone collect an escrow set-up fee? If so, do you mind to share the amount you collect?

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#1365823 - 03/29/10 09:23 PM Re: Escrow Set-Up Fee Nanee
2Confused2go on Offline
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Joined: Apr 2003
Posts: 148
Texas
No one seems to be answering questions about escrow fees, either set-up or annual. With the increased cost to the bank, we would like to charge for the service. Does anyone know if it is not allowed for some reason?
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#1365915 - 03/30/10 12:00 AM Re: Escrow Set-Up Fee 2Confused2go on
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,164
Galveston, TX
Whether a fee is allowed or not will all depend on State law. If State law allows, it will be a finance charge and have to be calculated into the APR whether it is a one-time fee or an annual fee.
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#1366492 - 03/30/10 07:10 PM Re: Escrow Set-Up Fee rlcarey
CQ1 Offline
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Joined: Sep 2009
Posts: 21
GA
We are a Georgia Bank and the GA Dept of Banking and Finance has issued no regulations regarding escrow accounts. I can find nothing in RESPA that refers specifically to a Tax Service Fee or any other "escrow" type one time fee.

Since we are not outsourcing the escrow function, we are considering charging a one-time Tax Service Fee of $75.00 which we know will be included in the APR Calculations and will also affect HOEPA calculations. If we were to outsource the service it would cost us anywhere from $85 - $130 per month, per loan.

Can anyone tell me this type of fee is specifically prohibited?

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#1366641 - 03/30/10 09:09 PM Re: Escrow Set-Up Fee CQ1
JobSecurity Offline
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Joined: Oct 2009
Posts: 604
I would like to know if anyone is aware of the rules for the State of Arkansas charging a setup fee.

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#1366773 - 03/31/10 02:39 AM Re: Escrow Set-Up Fee JobSecurity
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,164
Galveston, TX
CQ1 - if not prohibited by State law - then it is not prohibited.

Deb G - you might want to seek guidance for your State banking association.
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