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#2259409 - 09/08/21 11:28 PM CA Impound Disclosure and Waiver Form - HELOCS
Tarhe Offline
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Joined: Nov 2006
Posts: 1,234
California
Does the California Impound Disclosure and Waiver form (Pursuant to California Civil Code 2954(a)) pertain to HELOCs, too?

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#2259411 - 09/09/21 11:03 AM Re: CA Impound Disclosure and Waiver Form - HELOCS Tarhe
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,901
Galveston, TX
Well, allowing a customer to establish an escrow account in conjunction with a HELOC is highly unusual. But if you allow setting up escrow accounts in conjunction with HELOCs, then it would have to be a voluntary action by the applicants as there are no State or Federal laws or other required escrow account provisions tripped that would require it. In that case, you would need an acknowledgement that it was voluntarily established by the applicant. If you do not offer escrows with HELOCs, then the document becomes a moot point.
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#2259445 - 09/09/21 03:07 PM Re: CA Impound Disclosure and Waiver Form - HELOCS Tarhe
Reg Warrior Offline
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Joined: Jan 2017
Posts: 191
I'm with CA regulated FI, and we have designed our HELOC program to avoid the triggers in Civil Code 2954(a) for newly originated HELOCs. If we happen to have a HELOC in first lien position and the borrower doesn't pay their taxes or insurance, then we set up an involuntary escrow but we also restrict the HELOC at time.

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#2259458 - 09/09/21 04:32 PM Re: CA Impound Disclosure and Waiver Form - HELOCS Tarhe
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,234
California
Thank you both for the feedback - very helpful!!

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