Disclosing Escrow Estimates

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Question:

Would escrow estimates be reflected on the LE/CD on a junior mortgage if those are being covered by the first?

Answer:

You still have to include those estimates in the first page "Estimated Taxes, Insurance & Assessments" portion of the Projected Payments table.

On the closing disclosure, page 4, you will check the "will not have an escrow account" and "your lender does not offer one" boxes in the Escrow Account section. You will also complete the estimate of property costs (taxes, insurance, assessments) the borrower will pay for the first year, if known to the bank, directly to the taxing authority, insurance agency, etc.

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