Answer, Dan: Have the outside vendor quote you the section of RESPA that requires such an affidavit. They won't be able to because it does not exist.
Answer, Andy: Whether you want the account to have an escrow is up to you, and potentially any investor you may want to sell the loan to. The exception would be that if you have an escrow account and flood insurance is required, that must be escrowed.
First published on BankersOnline.com 3/13/06