Have a loan that we are renewing that already has escrow set up on it. We are extending the term and adding new money. This is an investment property, so trying to figure out what all we need to do on the escrow side (if anything)?

Investment property means nothing. Is it a consumer or business purpose loan and what type of property are we talking about, i.e., exempt from RESPA.

The property is a residential dwelling that is being rented out.

That covers the collateral, but not the purpose of the loan.

Purpose is for improvements to the property

Official Interpretation

1026.3(a) Business, Commercial, Agricultural, or Organizational Credit

4. Non-owner-occupied rental property. Credit extended to acquire, improve, or maintain rental property (regardless of the number of housing units) that is not owner-occupied is deemed to be for business purposes.

The loan is exempt from Z and X

Improvements to the rental property would make it a business purpose loan therefore exempt from Reg. Z & RESPA.

How you handle the escrow will be determined by the escrow agreement between the FI and the borrower.

Thank you Randy and Dan, I appreciate it! Any "best course of action" suggestions?

"best course of action" is based on whether you want to continue to escrow. If you do, have them sign a new escrow agreement when you renew the loan.

That's kind of what I was thinking. I appreciate it!