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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