Skip to content

Max Escrow Cushion

Answered by: 

Question: 
How do we know when a cushion is allowed?
Answer: 

Your loan documents will indicate if a cushion is to be kept, and in what amount. RESPA tells us a 1/6th of anticipated payments cushion is permitted, but your documents should also provide for the cushion. And don’t forget state laws, which could be more restrictive than RESPA.
--------------------------
Learn more about Andy Zavoina’s Escrow Rules
webinar.

First published on 10/24/2021

Search Topics