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#2245784 - 11/23/20 07:11 PM HPML and Escrowing Taxes
Komisu Offline
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If the borrower is paying the current years taxes at closing on a purchase loan and next years taxes fall outside the 12 month calendar for escrow, can we exclude it from escrow even if it is a HPML?

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Escrows on Higher-Priced Mortgages
#2245785 - 11/23/20 07:15 PM Re: HPML and Escrowing Taxes Komisu
rlcarey Offline
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rlcarey
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Galveston, TX
You could, but if you do not voluntarily escrow for the property taxes, they are going to be in for one heck of an escrow payment shock.
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#2245787 - 11/23/20 07:21 PM Re: HPML and Escrowing Taxes Komisu
Komisu Offline
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Awesome, thank you!

Yeah, we have dealt with Voluntarily Escrow items like this before, usually the borrowers opt for it once they see what the projected payment after the first year.

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#2246860 - 12/23/20 02:04 PM Re: HPML and Escrowing Taxes Komisu
Andy_Z Offline
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I would also say that if a borrower didn't want to make voluntary payments or could demonstrate the ability to handle that escrow issue, I might do a short year statement one or two payments in and start collecting the taxes.
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