I guess this the right forum for this question. Our bank is a small(less than $200 Million in Assets). Our President is wanting to starting escrowing mortgage loans. I am trying to start gathering info on how to begin setting up policies and procedures. Do any of you do this already and would have anything to share with me. If you do I would appreciate any help.

We don't have a policy. We don't require the customer to escrow (only when required such as HPML). All of ours are voluntary and usually only taxes and insurance. I think most of your procedures will depend on how your processor handles escrow.

I would start with reading 1024.17 to learn about all the different aspects of escrowing.

Crash, I have the same questions as well. We do not currently escrow, but I have been tasked with researching what it will take for our bank to do so. It seems to be a little daunting!

Start by talking with your core providers.