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#1101357 - 12/23/08 03:27 PM Escrow Surplus - $.03
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
On one of our accounts the escrow surplus is $50.03 - i understand we are required to refund anything in excess of $50 to the customer - but $.03 - the stamp costs more. Is there a "under $1 rule" or something that we can keep this in the account rather than sending a check for .03.

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#1101369 - 12/23/08 03:34 PM Re: Escrow Surplus - $.03 Tryin-2-Comply
ahanna Offline
Gold Star
Joined: Aug 2008
Posts: 380
Texas
The amount of the surplus is $50.03, not $0.03. The rule requires you to refund the entire surplus if it is in excess of $50 - not just the amount that exceeds $50 (assuming the borrower is current on their payments). You need to send the borrower a check for $50.03.

See 3500.17(f)(2)
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#1101396 - 12/23/08 04:05 PM Re: Escrow Surplus - $.03 ahanna
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
The refund threshold is >= $50.

(2) Surpluses. (i) If an escrow account analysis discloses a surplus, the servicer shall, within 30 days from the date of the analysis, refund the surplus to the borrower if the surplus is greater than or equal to 50 dollars ($50). If the surplus is less than 50 dollars ($50), the servicer may refund such amount to the borrower, or credit such amount against the next year's escrow payments.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1101412 - 12/23/08 04:14 PM Re: Escrow Surplus - $.03 Dan Persfull
ahanna Offline
Gold Star
Joined: Aug 2008
Posts: 380
Texas
Thanks for the clarification.
Last edited by ahanna; 12/23/08 04:15 PM.
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#1101861 - 12/23/08 11:01 PM Re: Escrow Surplus - $.03 ahanna
Tryin-2-Comply Offline
100 Club
Joined: Apr 2003
Posts: 202
Hills of TN
so, the surplus is $50.03 - therefore, we are required to refund the entire amount and send a check in the amount of $50.03.

Correct?

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#1101884 - 12/24/08 12:09 AM Re: Escrow Surplus - $.03 Tryin-2-Comply
Cowboys Fan Offline
Power Poster
Joined: Dec 2002
Posts: 4,598
SC
Correct.
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#1101955 - 12/24/08 01:49 PM Re: Escrow Surplus - $.03 Cowboys Fan
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
FWIW, Correct.
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#1101968 - 12/24/08 02:13 PM Re: Escrow Surplus - $.03 David Dickinson
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
I will third that, but also add if the surplus is $50.00 even then you would need to also refund the $50.00. If the surplus is $49.99 then you have the option to refund it or apply it to the next computation year.
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The opinions expressed are mine and they are not to be taken as legal advice.

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