If one of the borrower recently past away prior to the loan paying off and a check is being cut to for the remaining escrow balance how should the check be made payable. We typically would issue a check made out to both borrowers but the remaining borrower wants it just to them.

The dead person can no longer make payments - I am not sure why they would be entitled to any refunds. It cannot be for a large sum - can it?

In this case it is about $2,000. Given the account is still jointly held I assumed it would still be considered held by the remaining borrower and the estate.

That could be - but is the remaining borrower the SII? Do you think that other heirs are going to raise a stink? It is a risk call, but why make a widow or widower jump throw more hoops than they have too if they just lost their spouse. It really is going to depend on the facts at hand.