Escrow accounts are complicated! They aren’t always easy for customers to understand, and they can be just as confusing for a financial institution to administer. There are a lot of rules to follow and calculations that need to be accurate. In some cases, despite all of this, an escrow account can experience a surplus, which means the account has too much money. So, what are you required to do in those situations?
Jerod explains more in the video.
Video Highlights:
- A surplus occurs when there is too much money in an escrow account.
- If the surplus amount is greater than or equal to $50, it must be refunded within 30 days of the analysis date.
- If the surplus amount is less than $50, it can either be refunded to the borrower or credited against next year's escrow payments.
Published
2023/01/10
