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Letter Concerning an Escrow Overage?

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Question: 
Is there suggested text for a letter concerning an escrow overage?
Answer: 

1024.17(i)(1) requires you provide the following in your annual escrow statement:

a. An account history, reflecting the activity in the escrow account during the account computation year;

b. A projection of the activity in the account for the next year;

c. The amount of the borrower’s current monthly mortgage payment and the portion of the monthly payment going into the escrow account;

d. The amount of the past year’s monthly mortgage payment and the portion of the monthly payment that went into the escrow account;

e. The total amount paid into the escrow account during the past computation year;

f. The total amount paid out of the escrow account during the same period for taxes, insurance, and other charges (as separately identified);

g. The balance in the escrow account at the end of the period;

h. An explanation of how any surplus is being handled by the servicer;

i. An explanation of how any shortage or deficiency is to be paid by the borrower; and,

j. If applicable, the reason(s) why the estimated low monthly balance was not reached, as indicated by noting differences between the most recent account history and last year’s projection.

HUD used to have models available on the internet, but pulled them down. The 2/15/1995 Federal Register (Vol 60, No 31) has models in it that you might find helpful. The RESPA portion begins on page 8812.
https://www.gpo.gov/fdsys/pkg/FR-1995-02-15/pdf/95-3683.pdf

First published on 11/04/2018

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