If your financial institution requires escrow accounts subject to §1024.17 of RESPA, you know that there are a lot of detailed requirements to follow. One such requirement is to provide a loan payoff statement. If a borrower pays off a mortgage loan during the escrow account computation year, the servicer must provide a loan payoff statement, which is essentially a modified short-year statement that reflects the history of the account since the last annual escrow account statement. The loan payoff statement must be provided within 60 days after the payoff funds are received. So what are you required to do with any money remaining in the escrow account? There are actually a few options.
Jerod explains more in the video.
Video Highlights:
- A Loan Payoff Statement is a short-year statement; however, a projection for the next escrow account computation year is not required to be disclosed.
- Escrow refunds must be provided within 20 days of loan payoff but the Loan Payoff Statement doesn’t have to be provided until 60 days after the loan is paid off.
- Money left in an escrow account can be provided via check, netted against the payoff balance, or moved to a new loan under certain conditions.
Published
2023/12/15
