Skip to content
BOL Conferences
Thread Options
#2184800 - 07/10/18 07:53 PM Initial Escrow Deposit
George Offline
Gold Star
Joined: Apr 2016
Posts: 364
Is there a cutoff as to when we can collect the initial escrow deposit? My situation: our borrower wanted set up an escrow account for a loan that is not required, and requested we set it up after we had already closed the loan. However, the LO never collected the deposit, but an account was still set up. This was a year ago and I am getting ready to do their annual analysis. There is a significant difference in the analysis when comparing as if we had collected. Is it too late to request the deposit?

Return to Top
Lending Compliance
#2184860 - 07/11/18 01:07 PM Re: Initial Escrow Deposit George
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
Review 1024.17(f) for collecting shortages determined at the annual analysis.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2184877 - 07/11/18 02:31 PM Re: Initial Escrow Deposit George
George Offline
Gold Star
Joined: Apr 2016
Posts: 364
Ok, that is what I am trying to figure out, if I just run the analysis as normal sans deposit? Or if we are able to still collect the initial deposit? This is the first analysis since opening the escrow, so I just want to make sure before we jack their payment up $1,300.

Return to Top
#2184889 - 07/11/18 03:11 PM Re: Initial Escrow Deposit George
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
jack their payment up $1,300

Are you saying their monthly payment will increase $1300? That must have been one heck of an initial deposit and I would hate to be the loan officer when their customer calls them and wants to know what the heck happened.

Your options are outlined in 1024.17. Keep in mind you are not limited to the 12 month period. That is the minimum allowable time.

(C) The servicer may require the borrower to repay the shortage amount in equal monthly payments over at least a 12-month period.

Since the loan officer messed up you may want to consider a separate reduced cost loan to repay the shortage.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top
#2184891 - 07/11/18 03:26 PM Re: Initial Escrow Deposit George
George Offline
Gold Star
Joined: Apr 2016
Posts: 364
Yes sir, it was a hefty deposit; which really hurts because it also creates a deficiency. I will run our analysis and present our options to the LO and let him run with it. I appreciate your help!

Return to Top

Moderator:  Andy_Z