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#879499 - 12/27/07 10:22 PM Discontinuing escrows
Ninky Offline
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Ninky
Joined: Nov 2002
Posts: 357
Is any written requirement or notification timeframe required to discontinue collecting for taxes and insurance with the P&I payment on a mortgage loan? The Deed of Trust does not require the collection of escrows. This a "onesy" loan from a bank acquisition. We don't want to continue collecting and paying the T&I. Does RESPA have any disclosure notification or notice timeframe to discontinue collecting escrows?

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Lending Compliance
#879507 - 12/27/07 10:28 PM Re: Discontinuing escrows Ninky
Andy_Z Offline
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I don't recall any requirement or notification. If anything, it is perhaps a change addressed under your loan docs. If it is silent, I would give the customer a 30 day notification of what you'll be doing, and ESPECIALLY what their responsibility will now be. They need to provide you proof of this, by that time.

I'd also offer to open a separate savings account for them to use if they want to move your proceeds check there and contribute to it on their own. You'll need to close it out with an annual or short year statement as well, reflecting the complete disbursement.
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