These are your options under 1024.17(f)
(3) Shortages. (i) If an escrow account analysis discloses a shortage of less than one month’s escrow account payment, then the servicer has three possible courses of action:
(A) The servicer may allow a shortage to exist and do nothing to change it;
(B) The servicer may require the borrower to repay the shortage amount within 30 days; or
(C) The servicer may require the borrower to repay the shortage amount in equal monthly payments over at least a 12-month period.
(ii) If an escrow account analysis discloses a shortage that is greater than or equal to one month’s escrow account payment, then the servicer has two possible courses of action:
(A) The servicer may allow a shortage to exist and do nothing to change it; or
(B) The servicer may require the borrower to repay the shortage in equal monthly payments over at least a 12-month period.
(4) Deficiency. If the escrow account analysis confirms a deficiency, then the servicer may require the borrower to pay additional monthly deposits to the account to eliminate the deficiency.
(i) If the deficiency is less than one month’s escrow account payment, then the servicer:
(A) May allow the deficiency to exist and do nothing to change it;
(B) May require the borrower to repay the deficiency within 30 days; or
(C) May require the borrower to repay the deficiency in 2 or more equal monthly payments.
(ii) If the deficiency is greater than or equal to 1 month’s escrow payment, the servicer may allow the deficiency to exist and do nothing to change it or may require the borrower to repay the deficiency in two or more equal monthly payments.
(iii) These provisions regarding deficiencies apply if the borrower is current at the time of the escrow account analysis. A borrower is current if the servicer receives the borrower’s payments within 30 days of the payment due date. If the servicer does not receive the borrower’s payment within 30 days of the payment due date, then the servicer may recover the deficiency pursuant to the terms of the federally related mortgage loan documents.
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Opinion expressed are my own and not necessarily those of my employer.