Estimated Taxes, Insurance & Assessments on Loan Estimate

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Question:

I am doing a 6 month interest only loan to a customer to make home improvements. I am not escrowing for taxes or insurance for this loan. Do I still need to disclose the "Estimated Taxes, Insurance, and Assessments" on page 1 of the new Loan Estimate?

Answer:

Yes. Those estimates are required on loans subject to the TRID requirements whether or not the lender will escrow for those payments. Note that the disclosure includes an indicator showing whether the funds are to be paid into an escrow account.