Can we collect escrow cushion on PMI when it is paid monthly?
I found some 2009 guidance that states:
"Overcharges in the collection of initial escrow deposits generally result when errors are made in the initial analysis. Other calculation or system entry errors can result in errors in the escrow deposit amounts. Some examples include:
-Including mortgage insurance (MI) premiums in cushion amounts when MI premiums are paid monthly."
Does this mean that you cannot collect an escrow cushion for PMI that is paid monthly?
Here's the link:http://www.philadelphiafed.org/bank-reso...arter/q2_03.cfm
I appreciate your help.