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#1670079 - 02/27/12 04:32 PM Escrow
MSMITH10 Offline
100 Club
Joined: Sep 2010
Posts: 160
If we have a 6 M loan with 15 year amortization, would we excrow?

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Lending Compliance
#1670090 - 02/27/12 04:24 PM Re: Escrow MSMITH10
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
If it's a HPML secured by a first lien, yes.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1670095 - 02/27/12 04:42 PM Re: Escrow MSMITH10
MSMITH10 Offline
100 Club
Joined: Sep 2010
Posts: 160
Regardless of the term? Is this because of the amortization or does the term never make a difference? We normally do not escrow if term is less than 1 year.

What if we have a 6 M interest only HPML secured by first lien?

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#1670104 - 02/27/12 04:35 PM Re: Escrow MSMITH10
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
There is no exemption in 1026.35 for short term financing.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1670111 - 02/27/12 04:53 PM Re: Escrow MSMITH10
MSMITH10 Offline
100 Club
Joined: Sep 2010
Posts: 160
How would you calculate the excrow payment on a 6 month term? Take the 12 month premium and divide by 6?

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#1670131 - 02/27/12 04:56 PM Re: Escrow MSMITH10
Dan Persfull Online
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
You would still calculate based on the guidance in 1024.17.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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