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#2269312 - 04/19/22 01:10 PM Illinois Mortgage Escrow Documents
KevKop Offline
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Joined: Feb 2022
Posts: 9
We are going to start offering escrow soon. I have been researching what additional documents will be required and I have come up with the list below. Are there any other documents, specifically, documents required for the state of Illinois, that I may be overlooking? Also, does anyone know of any model forms (I have the federal closing notice model form) available or would anyone be willing to share the forms that they use? Thank you!

- Initial Escrow Statement

- Annual Escrow Account Statements

- Escrow Closing Notice

- Illinois Mortgage Escrow Account Document

- Illinois Escrow Election Letter

- Illinois Escrow Disclosure Agreement

- Illinois Notice of Right to Terminate Escrow

- Illinois Notice of Tax Payments

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#2269317 - 04/19/22 01:31 PM Re: Illinois Mortgage Escrow Documents KevKop
rlcarey Online
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rlcarey
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Galveston, TX
Are you a bank or a licensed lender?
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#2269318 - 04/19/22 01:38 PM Re: Illinois Mortgage Escrow Documents rlcarey
KevKop Offline
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Posts: 9
A bank.

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#2269320 - 04/19/22 01:56 PM Re: Illinois Mortgage Escrow Documents KevKop
rlcarey Online
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rlcarey
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Galveston, TX
Then I believe you are exempt from the State specific disclosures as those are required under Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 of which a bank would be exempt.
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#2269322 - 04/19/22 02:14 PM Re: Illinois Mortgage Escrow Documents rlcarey
KevKop Offline
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Thank you! We would still have to comply with the Illinois Mortgage Escrow Account Act though, correct?

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#2269324 - 04/19/22 02:37 PM Re: Illinois Mortgage Escrow Documents KevKop
rlcarey Online
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rlcarey
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Galveston, TX
Yes
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#2283960 - 04/28/23 09:27 PM Re: Illinois Mortgage Escrow Documents KevKop
CountryBanker Online
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Joined: Mar 2013
Posts: 266
Northern IL
This question came up recently, and I'm researching an answer for the future. Right now, there is no collateral requiring Flood Insurance.

Does the IL Escrow Act cover flood insurance escrow? I understand that Property Taxes and Homeowners/Hazard Insurance is covered, released at 65%, but the word 'flood' isn't in the statute. Would the bank be able to escrow for flood insurance at all times? I'm thinking YES, the IL law must accommodate Reg. Z HPML mandatory escrow, so why not federal flood insurance.
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#2283967 - 04/29/23 11:47 AM Re: Illinois Mortgage Escrow Documents KevKop
rlcarey Online
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rlcarey
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Galveston, TX
As I read the act, only property taxes are mentioned. Is says nothing about covering escrows for insurance coverages, standard hazard or flood insurance.
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#2284187 - 05/05/23 03:02 PM Re: Illinois Mortgage Escrow Documents KevKop
CountryBanker Online
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Northern IL
Been busy, but appreciate the insight, thank you.
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