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#2144430 - 08/31/17 01:27 PM Can a payoff quote net out escrow funds?
TNB Offline
Member
Joined: Mar 2008
Posts: 77
Texas
For escrowed loans we quote the full principal and interest due. The escrow is refunded to the borrower when the payoff is received. It is NOT netted out of the payoff quote. I'm not sure why it's done this way as I can't find anything in RESPA so I thought it might be Texas law that the escrow cannot be netted out of the payoff? What do other Texas lenders do?

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#2144515 - 08/31/17 04:43 PM Re: Can a payoff quote net out escrow funds? TNB
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,651
Galveston, TX
If you get the payoff quote from a title company, you have to use this form which excludes escrows:

http://www.sml.texas.gov/ResidentialMort...payoff_form.pdf
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2144541 - 08/31/17 05:41 PM Re: Can a payoff quote net out escrow funds? TNB
TNB Offline
Member
Joined: Mar 2008
Posts: 77
Texas
Thank you, Randy. Our payoff form has the same information that we use for all payoff quotes so maybe that's why we don't net it out. Thank you.

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#2153015 - 11/10/17 04:03 PM Re: Can a payoff quote net out escrow funds? TNB
Always In Training Offline
Diamond Poster
Joined: Jul 2006
Posts: 1,111
Where the Green Grass Grows
If you aren't using the Texas Mortgage Servicers Payoff Form (7 TAC section 155.2) form for payoff requests from title companies, you aren't in compliance with the law.

Because there's a bunch of stuff on the form that has nothing to do with non-real estate loans, I can't imagine that you are giving that form on all your payoffs.

My core initially didn't have the Mortgage servicers payoff form programmed in, and we had to manually complete a pdf copy, but it wasn't difficult.

The link Randy gave is out of bounds on my firewall -- but this is a fillable pdf from TBA that we used to complete. You can net out the payoff in reductions in amount due. (or not).
http://www.texasbankers.com/docs/section_155_2_c_6_payoff_form.pdf

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#2153024 - 11/10/17 04:16 PM Re: Can a payoff quote net out escrow funds? TNB
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,651
Galveston, TX
Interesting that the Texas Department of Savings and Mortgage Lending is out of bounds for you shocked
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2154656 - 11/22/17 06:24 PM Re: Can a payoff quote net out escrow funds? TNB
Always In Training Offline
Diamond Poster
Joined: Jul 2006
Posts: 1,111
Where the Green Grass Grows
I'm under the Texas Department of Banking. I could probably get my firewall tweaked. Typically, its some wording in the wording in the coding that gets things blocked in my firewall.

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