There are several rules, such as certain provisions within Regulation Z (for Higher-Priced Mortgage Loan transactions) and the flood insurance rules, that require a lender to escrow for various items in certain instances. Then there are requirements under Reg. Z’s TRID rules that mandate how the initial escrow payments should be disclosed. And lastly, RESPA has specific requirements around how to maintain the escrow account, as well as limitations on how much can be maintained in the account.
Keeping these requirements straight can be a hassle – lenders must know which of the requirements applies in what circumstance, meaning the loan type. Not all the requirements apply to all real estate transactions, for instance.
It is clear that the regulatory agencies (and Congress) favor escrows, as they even note a borrower’s payment responsibilities, therefore lessening the likelihood of default. It’s important to get the rules right.
This webinar will provide you with the information you need to understand the requirements and all the laws and regulations that deal with escrow accounting. We’ll discuss disclosure requirements and where escrow information will appear on disclosure forms, as well as general escrow mandates, among other information.
What You’ll Learn
- What loans require escrows under Reg. Z’s HPML rule, and what fees must be escrowed
- Disclosure requirements of escrow information on TRID forms (Loan Estimate and Closing Disclosure)
- RESPA’s escrow requirements, including disclosures, accounting rules, and limitations
- RESPA’s aggregate accounting method, including examples
- Disclosures: initial, annual, and short-year account statements
- Dealing with surpluses, shortages, and deficiencies
- What to do about payment shock
- When escrowing for flood insurance premiums is required
Who Should Attend
This session is ideal for mortgage lenders, originators, compliance professionals, auditors, senior management, and anyone else involved in the mortgage or escrow process.