Regarding the Loan Estimate under Estimated Taxes, Insurance and Assessments: We were told that we had to estimate taxes, insurance including flood and other assessments In order to complete the monthly payment. How are we going to know if they are in a flood zone within 3 days of application with out running a determination? I would like to not incur that expense until we get back the intent to proceed.
Is there a model letter that is available to send to borrowers to extend the offer to escrow for flood insurance on their loans, if the loan is still outstanding on 12/31/15?
For secondary market is it required to collect a full year hazard insurance premium on a refinance if escrow is being waived?
We are an Illinois national bank with a consumer home mortgage loan made in July 2010. The loan has an escrow account and the balance in now paid down 65% of the original note amount. Do we need to send the Illinois Escrow Decline Notice (IED) now or wait until it is 5 years old? Previously we sent IED notices after one year - now its 5 years. BTW, the account does not have any other defaults.
We have a customer's home mortgage that is cross-collateralized with the their commercial building. The mortgage is now going to require escrowing for hazard insurance and property taxes. Do we also have to escrow for the insurance and taxes on the commercial building?
We have a first-lien HELOC at 80% LTV. We want to offer a second-lien closed-end home equity loan at 20% LTV. Since the two add up to 100% LTV, are we required to escrow? Neither loan is a higher-priced mortgage. The first is below 1.5% APR over APOR and the second is below 3.5%. Do I need to escrow?
Can you please tell me if there is any guidance on whether or not you can remove escrow from a delinquent loan? I understand reasons not to, but is it permitted if you deem it best?
If a customer does not have 20% down payment, do we need to obtain PMI and escrow?
Escrow Question: If the customer currently has force placed insurance and in a loan rework cannot get homeowner's insurance, can the force placed insurance be escrowed?
We viewed the webinar All About Escrows the other day and today a rare question was asked. An escrow analysis was done in 2013 and escrows increased but the total monthly payment did not. There was glitch in our system and because the system recognized the increase of escrow it took a portion of the total monthly payment and applied it into the escrow account so that the correct amount was going in; however the amount being taken was being taken from what should have been going towards the principal. Can we take the amount out of the escrow account now almost a year later and put it towards the principal as it should have been and charge the shortage that would result in the escrow account to the customer over 24 month or does the bank take a loss?