Is there suggested text for a letter concerning an escrow overage?
We are in the middle of completing a transfer of servicing on a Fannie Mae loan in our portfolio. Fannie Mae owns this loan, and we are just transferring the servicing and the escrow account that we hold.
Since we are closing the escrow account here, it's my understanding that we need to send the Escrow Closing Notice required in 1026.20. I am getting some push back on this from Fannie Mae - saying that they have never heard of this
and they do not agree due to the model language in the letter. I agree that it seems confusing - but we do not transfer mortgages ever so I want to make sure that we have everything correct.
Can you provide any clarity on this situation? Should we be sending the Escrow Account Closing Letter?
If the seller is paying all the closing costs, does the aggregate adjust for the escrow show as a credit to the seller or buyer on the closing disclosure?
Does a bank have to continue to make escrow taxes and insurance on behalf of borrower when they have stopped making their monthly payments? In other words, they are about to be in default?
Can someone clarify for me what description goes on the annual escrow analysis - the term "Taxes" or "Insurance" - or should it be the actual payee such as "State Farm" and where I can find that in the regulation? What I have found implies you could use either.
Can a bank choose to close an escrow because they no longer want to routinely escrow?
If a customer has an escrow account set up for taxes and insurance and they call and request to remove the insurance portion but keep the taxes do you need to send an escrow closing notice for the insurance portion that is being removed?
If we are lowering an escrow payment due to a reduction in the monthly PMI payment or say the flood insurance is no longer required and the customer no longer want to escrow for it. Do we need to run a short year analysis or can we just lower the payment by the amount of the monthly decrease and notify the customer in writing?
For a loan with escrow, what should the standard payment posting order be, and should the loan docs specify which escrow items get contributions in what order?
When a borrower is deceased, family members continue to make payment and the account has an escrow account:
1. Is the bank still obligated to continue paying taxes and insurance from the escrow account?
2. If the loan has PMI does the company need to be notified?
If the loan does not have an escrow account:
1. If the loan payments are still being paid by a family member and the insurance is being paid but left in the deceased person's name, what avenue should the bank take?