I should have clarified; I'm referencing instances when the customer's payments would have increased due to an increase in taxes or insurance, thus increasing their monthly payment.
For example, a customer's payments went up and made their base payment change from $100 to $120 a month. They also had a shortage which resulted in an increase of $20 a month to their new escrow base payment. Their new monthly escrow payment would be $140 and their cushion would be $280. They don't want their monthly loan payment to change, so they request to pay the shortage of $240 plus an additional $240 so that their monthly escrow portion of the payment will stay $100.
I realize that per 1024.17(f)(3) there are guidelines for making up a shortage, but when the taxes or insurance increase year to year and increase their monthly payment, can we allow them to pay the overage in order to keep their payments the same?
Or is our only option to increase their monthly payment? If this is something we can allow them to do, should we have the customer provide us with a signed statement that they requested to do this?