While most new revisions to Reg. Z go into effect 10/1/2009, don't the escrow provisions go into place on 4/1/2010?
We are looking into allowing voluntary escrow, and see that we have to adhere to the provisions of 3500.17 of RESPA. Are there any other concerns about which we should be aware?
We require that our members have an escrow account to pay their real estate taxes, homeowners insurance and PMI bills. When a member pays off his first mortgage, are we allowed to deduct the escrow balance from the payoff amount or do we have to refund the balance of the escrow account to the member? We have attended compliance seminars that advise us to refund the balance to the member however, our system is set up to deduct the escrow balance from the payoff amount.
Our bank currently does not escrow taxes and insurance. In a third party review it was stated that we should still give an estimate on the GFEs. Does the servicing disclosure have to be signed (RESPA)?
We have a customer who is refusing to pay the increase in her taxes which has made her escrow negative. We have asked her several times to catch up, giving her several opportunities. We would now like her to pay her own escrow. Because of her refusal to catch up, are we allowed to discontinue paying her escrow for her? I have looked in the Consumer Compliance Manual and have not noticed anything about discontinuing the escrow payments.
I understand that costs associated with no fee loans are to be shown as POC on the HUD. It is our practice to include the cost of the title, escrow and recording fees to the escrow company with our funding wire (over fund the loan). I have an escrow officer that refuses to show the fees as POC unless we send her a separate check and she won't even accept a separate wire for these fees. Her belief is that the items are not truly POC and this would constitute a RESPA violation. Therefore, she will only show it as a lender credit. I cannot find any information that suggests that over funding a loan constitutes a RESPA violation. Is this a RESPA violation, and if so, can you please guide me to the appropriate Reg?
Does the annual PMI Notice need to be mailed or provided by January 31st each year?
On HELOCs and fixed HEs, if the property is in a flood zone, are there any special exemptions from tracking flood insurance for these customers? Do you assume the first mortgage holder will monitor and escrow for insurance coverage? Since we do not escrow for second mortgage loans, how can I effectively guarantee that the customer or first mortgage holder is keeping insurance in force?
We are trying to comply with the FDIC SCANS bulletin # Chiro-04-2001 however we are having difficulty finding clarification as to exactly what is required. The FDIC is citing violations for the lack of disclosure of hazard insurance and taxes on GFEs and HUD-1 in a second lien and/or refinance transactions where adequate coverage is already in place and the bank does not require additional coverage or escrow for these items. The bulletin states that if the bank requires these items to be in place, they must be disclosed on both the GFE and the HUD-1 as paid outside of closing (POC). My first question is does the requirement apply to both hazard insurance and taxes? And secondly how are these items disclosed on the GFE and HUD-1, (i.e., are estimates based on current year totals divided by 12 months acceptable)?
Besides the annual privacy disclosure are there any other disclosures required to be provided to customers annually?