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



June 11, 2015
New Tech Advances to Improve Info Security
Susan Orr

June 22, 2015
50 Key Considerations for Integrated Disclosure Rules Readiness
Mary Beth Guard and Jack Holzkechnt

June 23, 2015
The IRS and TINs: The High Cost of Name Mismatches
Deborah Crawford

July 15, 2015
All About Escrows
David Dickinson



Topic Options
#1355492 - 03/10/10 05:06 PM Escrow Set-Up Fee
Nanee Offline
New Poster

Registered: 01/27/04
Posts: 12
Does anyone collect an escrow set-up fee? If so, do you mind to share the amount you collect?

Top
Lending Compliance
#1365823 - 03/29/10 05:23 PM Re: Escrow Set-Up Fee [Re: Nanee]
2Confused2go on Offline
100 Club

Registered: 04/24/03
Posts: 146
Loc: 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?
_________________________
- please send any lottery winnings to me!

Top
#1365915 - 03/29/10 08:00 PM Re: Escrow Set-Up Fee [Re: 2Confused2go on]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 52975
Loc: 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.
_________________________
The opinions expressed are my own, take them or leave them.

Top
#1366492 - 03/30/10 03:10 PM Re: Escrow Set-Up Fee [Re: rlcarey]
CQ1 Offline
New Poster

Registered: 09/21/09
Posts: 16
Loc: 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?

Top
#1366641 - 03/30/10 05:09 PM Re: Escrow Set-Up Fee [Re: CQ1]
JobSecurity Offline
Gold Star

Registered: 10/16/09
Posts: 361
I would like to know if anyone is aware of the rules for the State of Arkansas charging a setup fee.

Top
#1366773 - 03/30/10 10:39 PM Re: Escrow Set-Up Fee [Re: JobSecurity]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 52975
Loc: 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.
_________________________
The opinions expressed are my own, take them or leave them.

Top

Moderator:  Andy Z