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#2140745 - 08/03/17 09:43 PM Escrow interest paid monthly to annually
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Currently we pay interest from escrow annually. We are acquiring a bank that pays the interest out monthly. We would like to have things be consistent and change the acquired banks interest payout to annually. Anything that would prohibit us from doing that? Would it require advance notification of any type? I don't see where interest credited is addressed in the note so we wouldn't have to do modifications or anything.
Anyone have an opinion, or experience with this?
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#2140771 - 08/04/17 01:20 PM Re: Escrow interest paid monthly to annually Bec
DoS Offline
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DoS
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one state over
I perused ยง 138.052 and I don't see anywhere in there where the customer is to receive notification for anything like this.

Honestly, when was the last time a customer looked at an escrow statement ....
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#2140819 - 08/04/17 03:35 PM Re: Escrow interest paid monthly to annually Bec
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Thanks for scrubbing the statutes for me. I didn't find anything either. But a second set of eyes on it gives me a degree of comfort.
As far as your second statement, LOL, unfortunately that does not mean we don't have to get it right. But I get what you are saying.
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#2140829 - 08/04/17 04:06 PM Re: Escrow interest paid monthly to annually Bec
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one state over
Originally Posted By Bec
unfortunately that does not mean we don't have to get it right.


I agree

I would probably put a statement message on the escrow statement pointing out the change, but nothing in advance of the change
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#2140853 - 08/04/17 05:13 PM Re: Escrow interest paid monthly to annually Bec
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Or you could put something outlining when the account will be analyzed and interest paid on the change of servicer letter that you have to send out.

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