Thread Options
#1264171 - 10/08/09 09:39 PM Escrow Disbursement
pitterpat Offline
Junior Member
Joined: May 2007
Posts: 29
Can excess Escrow funds be applied to a loan payoff directly rather than be refunded to the customer?

Return to Top
Lending Compliance
#1264208 - 10/08/09 10:04 PM Re: Escrow Disbursement pitterpat
Cowboys Fan Offline
Power Poster
Joined: Dec 2002
Posts: 4,597
SC
We stopped netting the positive escrow a few years ago based, in part, on info found in the threads. If you search on +escrow +payoff you'll find a fair amt of info and opinions. Here's one to get you started.
_________________________

Return to Top
#1264239 - 10/09/09 12:15 AM Re: Escrow Disbursement Cowboys Fan
David Dickinson Offline
10K Club
David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
The escrow funds are not yours. With the borrower's permission, you could apply it to the payoff, but you can't assume or automatically do so. The new RESPA rules clarify this by requiring escrow payoffs to be shows in the 200 series of a new loan. See the Q&As.
_________________________
David Dickinson
http://www.bankerscompliance.com

Return to Top

Moderator:  Andy_Z