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#2185495 - 07/16/18 04:44 PM Discontinue Hz Insurance in Escrow Account
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
We have a customer that at this time cannot obtain insurance because of an aggressive dog. The mortgage loan amount is so very small that the bank is willing to take the risk of no hazard insurance. At this time we do not require escrow on our loans. Can we exempt this escrow account from including the hz insurance? If so, would you refund the current collected premiums? Apply them to the loan? Thanks in advance
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#2185496 - 07/16/18 04:54 PM Re: Discontinue Hz Insurance in Escrow Account HRH Okie Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
If you are not required to escrow and you are no longer going to require that they maintain hazard insurance as a condition of the loan, then you can release them from that portion of the escrow account. To refund, you would have to perform a short year escrow analysis.
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#2185506 - 07/16/18 05:13 PM Re: Discontinue Hz Insurance in Escrow Account HRH Okie Banker
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Thank you,
_________________________
Just working here until I get my letter from Hogwarts.

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