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Escrow account statements under RESPA in latest Compliance Blog
NAFCU Regulatory Compliance Counsel Reggie Watson breaks down the Real Estate Settlement Procedures Act's (RESPA) annual escrow account analysis requirements in the latest Compliance Blog post. RESPA is implemented by Regulation X, a regulation which requires credit unions to conduct an initial escrow account analysis before establishing a new escrow account.
Watson advises that escrow accounts are typically set up on behalf of borrowers to collect and pay taxes, insurance premiums or any other voluntary charges that are associated with a federally-related mortgage loan. Under current regulation, credit unions must conduct subsequent escrow account analyses and disclose the results to the member at the end of each escrow account computation year.
Watson's blog also includes counsel on what a credit union must do under RESPA if the escrow analysis determines that a deficiency, shortage or surplus exists on the account.
For more including information on statutory penalties if the annual statement is not submitted to the borrower, read Watson's blog post. Those interested can sign up to receive new blog posts in their inbox every Monday, Wednesday and Friday by clicking here.