Have a customer who is now deceased and has a low mortgage loan balance. No successor of interest. Individual who had durable power of attorney wants the balance in the escrow account to be applied to the loan balance and then will pay off the loan. Amount in escrow account is over the $50. Can we do this or do we have to cut a check payable to the estate of the deceased? Everything I have read, reads we have to cut a check unless the owner (who is deceased) wants to originate a new loan and apply it to the new escrow account (which will not happen). Any advice is welcome. Thanks!

A POA dies with the person. They have no right to give you any instructions nor do you any longer have the right to disclose any information regarding the deceased person. An executor needs to appointed to handle all of this.

That is the conclusion I had, but wanted to make sure I wasn't missing anything. I appreciate the help. Thanks!

But to answer your question:

Official Interpretation

Paragraph 34(b)(1).

1. Netting of funds. Section 1024.34(b)(1) does not prohibit a servicer from netting any remaining funds in an escrow account against the outstanding balance of the borrower's mortgage loan.