Skip to content

New Escrow on Existing Loan

Answered by: 

We had a customer ask to start a voluntary escrow account on an existing loan. Do we need a new agreement?

Neither RESPA nor Reg Z require a formal agreement, but having any request signed by the borrower is not a bad idea to document how the increased payment came about. RESPA does require the initial statement be completed within 45 days of the account’s establishment. I recommend doing the analysis and explaining it to the borrower, then collecting the funds and getting Loan Admin to change the billing from P&I to PITI for tax and insurance, assuming those are now included.


Learn more about Andy Zavoina’s Escrow Rules

First published on 10/17/2021

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics