Escrow Closing Notice
When an escrow account is canceled during the term of a loan, the Truth in Lending Act generally requires an “Escrow Closing Notice” be provided to the consumer. If the consumer has requested the cancellation, the Notice must be in their hands at least three business days before closing the escrow account. Otherwise, the Notice must be in the consumer’s hands at least 30 business days prior to closing the escrow account. The Regulation provides a model notice, which we recommend using, as there are specific font size and other formatting requirements.
Keep in mind, there are some restrictions on canceling certain escrow accounts, including those created in connection with Higher-Priced Mortgage Loans (HPMLs) and, for certain creditors, escrow accounts that include flood insurance.
Jerod explains more in the video.
2025/01/16
Jerod Moyer
Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru. Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports-related!