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#2043051 - 10/07/15 02:42 PM Escrow Balance Transfer
Here4Life Offline
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On an in-house Refinance, can you show an Escrow Balance Transfer on the Loan Estimate? The only thing I can find references Other Credits on page 3 of the Closing Disclosure.

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#2043054 - 10/07/15 02:45 PM Re: Escrow Balance Transfer Here4Life
JWills, CRCM Offline
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JWills, CRCM
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The Mitten State
I didn't think of that. I can't think of anywhere else you could fill in the balance to be transferred.
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#2043876 - 10/13/15 03:13 PM Re: Escrow Balance Transfer Here4Life
Here4Life Offline
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Posts: 119
Now I am lost.....on an in-house refi, if we elect to use the Payoffs & Payments alternative table where do we put the Escrow Balance Transfer? I don't see a Other Credits section.

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#2047927 - 11/04/15 02:40 PM Re: Escrow Balance Transfer Here4Life
BSAguy Offline
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Joined: Aug 2007
Posts: 285
Kansas
We have the same question. Anyone have any thoughts?

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#2047933 - 11/04/15 02:44 PM Re: Escrow Balance Transfer Here4Life
John Burnett Offline
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John Burnett
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Cape Cod
Handle it a different way. Net the escrow balance on the old loan out of the payoff figure for that loan. Then you collect those funds back to fund the escrow for the new loan. See 1024.34(b)(1), comment 34(b)(1)-1.
Last edited by John Burnett; 11/04/15 02:55 PM. Reason: ETA citation and remove borrower OK.
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#2047941 - 11/04/15 03:09 PM Re: Escrow Balance Transfer Here4Life
Truffle Royale Offline

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Just make sure you get it in writing from the borrower that they agree to you netting the balance from the old loan lest you get dinged by examiners for 'assuming' this. (true story)

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#2047946 - 11/04/15 03:21 PM Re: Escrow Balance Transfer Here4Life
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
The borrower needs to agree to the crediting of the balance to the new escrow account but the cite John provided does not require the borrower's consent to net the escrow balance from the loan balance.

Netting the balance is in essence providing a refund to the borrower within the 20 days required by .34(b)(1).
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#2048030 - 11/04/15 06:04 PM Re: Escrow Balance Transfer Here4Life
BSAguy Offline
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Joined: Aug 2007
Posts: 285
Kansas
I appreciate the help everyone.

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#2053049 - 12/08/15 05:41 PM Re: Escrow Balance Transfer Here4Life
Ivore Garza Offline
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Joined: May 2014
Posts: 6
If we show an escrow balance transfer in Section L "Other Credits" as the regulation states in 1026.38(j)(2)(vii), this credit counts towards all settlement costs and not only to the escrow account. So it is permissible to apply the escrow balance to all settlement costs when the balance in the account is more than the new initial deposit? The balances almost will never align, there will be either a surplus that will go towards the other settlement fees or a deficit that will need to be collected. Does anyone have any additional input on this topic?

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#2053056 - 12/08/15 05:52 PM Re: Escrow Balance Transfer Here4Life
rlcarey Offline
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rlcarey
Joined: Jul 2001
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Galveston, TX
I'm not sure what any other option might be??
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#2081569 - 06/02/16 06:51 PM Re: Escrow Balance Transfer rlcarey
purllow182 Offline
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purllow182
Joined: Apr 2014
Posts: 69
So on the CD - where do we show the amount they currently have in escrow, say $6k, which will go towards the new escrow account (same lender).
Do I show a lender credit (Paid by Others) in section G. Homeowner's insurance line (-$1k) as well as the property tax line (-$5k)?
Or, (Borrower-Paid) under H. Other, can we use "Escrow Transfer" and plug in the -6k escrow credit.
Or, less our mtg payoff by the 6k. Which means it's will not appear in section G or H on the CD?

Thanks in advance!

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