Q Must the annual escrow account analysis required under § 1024.17(c)(3) of RESPA/Regulation X still be completed when the related mortgage loan is over 60 days past due?
A Yes. The servicer must conduct the annual escrow account under § 1024.17(c)(3), but the servicer does not need to provide the statement until the borrower becomes current.
Section 1024.17(i)(2) states that, “If at the time the servicer conducts the escrow account analysis the borrower is more than 30 days overdue, then the servicer is exempt from the requirements of submitting an annual escrow account statement to the borrower under § 1024.17(i).” However, the regulation does not provide a similar exception relative to completing the analysis. Note, though, that the general provisions under § 1024.17(f)(2) for refunding a surplus do not apply if the borrower is not current at the time of the escrow account analysis.
For more information, contact ABA’s Terry Hollinger.
Please note that this section is not a substitute for professional legal advice.
