We paid escrow into a negative for insurance knowing that escrow would be even by the end of the year. The client cancelled the insurance and
received the refund check. Are insurance companies required to send the refund check back to the consumer or is there a way we can ensure going
forward that the refund checks come to the bank?
We are doing a second mortgage where the first mortgage is already in escrow.
1.) Should we disclose the estimated escrow on page 1 of the Loan Estimate with No for being in escrow or should we completely leave them off since the borrower is already in escrow.
2.) On Page 4 of the Closing Disclosure how should we disclose here as well, and if we select no escrow, our only options are because the customer declined it or your lender does not offer one. Neither of these fit our situation because the customer is already in escrow with us, so they didn't decline it nor did we not offer one.
Can a servicer use a borrower's escrow surplus to pay delinquent taxes? Mortgage payments are up to date, and the escrow includes taxes and insurance.
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?