If we know a borrower's taxes will be much higher in the second year, are we allowed to use the higher tax amount when we establish an escrow account.........OR..........are we required to estimate the tax payment based on the amount the taxes will likely be the first year and depend on the borrower to VOLUNTARILY add escrow monies to the escrow account to prevent payment shock the following year?
After a loan has been processed, what does a loan servicing specialist do?
We are working with a consumer mortgage customer and their escrow account for their insurance and taxes. They have a hardship case due to advanced age and declining health issues, and we are looking at ways to keep their payments as low as possible. I know that it is required by regulation to keep payment reserves in the escrow account, but if we reduce or waive those requirements could we still be cited for not following the letter of the regulation?
Would escrow estimates be reflected on the LE/CD on a junior mortgage if those are being covered by the first?
We are a commercial bank in New York. Do we need to report interest that is paid on our real estate escrow accounts to the IRS?
When a loan moves from "interim servicing," to "servicing," is a short year statement required under RESPA?
As an example, say a loan closed and was purchased by an investor 15 days later. The investor takes entire escrow balance with the deal, so would short year end escrow statement be required?
In another example, if we as the original lender collect first payment and the investor leaves one month of mortgage insurance to pay from escrow balance, are we required to send a short year escrow statement to the borrower?
Is there a specific regulations that clearly states interim servicing vs servicing?
On an HPML, can the customer cancel their escrow account if the loan has been on the books for more than 5 years?
Occasionally, the secondary market makes us collect too much at closing (13th month example). Just to clarify, at closing we can collect a 2-month cushion, the balance determined by the aggregate analysis and anything due before the start of the escrow account computation year. Correct?
Are there regs limiting when an annual escrow analysis may be done?
We have a borrower that closed in January, first payment due in March, and they received an Annual Escrow Disclosure from our sub-servicer for their payment to change in April. The payment is going up less than $40. Shouldn't this only be conducted at the end of the escrow cycle to determine the shortage/surplus?
With the escrow ruling becoming effective January 1, 2016, does anybody have any sample correspondence that they are sending to their borrowers explaining this new rule and the requirement to escrow their flood insurance premium?