Mortgage Servicing Escrow Accts General 8 – What is a short year statement?

Compliance > Regulation X and Z - Servicing
Q:   What is a short year statement?
 
A:   (UPDATED 6/2/2021): A servicer may issue a short year statement to change one escrow account computation year to another. 12 CFR § 1024.17(i)(4).
 
For example, if the servicer transfers servicing to another servicer, then the old servicer must submit a short year statement to the borrower within 60 days of the effective date of the transfer. 12 CFR § 1024.17(i)(4)(ii).
 
Another example is when the borrower pays off the mortgage loan during the escrow account computation year, then the servicer must submit the short year statement within 60 days after the servicer receives the payoff funds. 12 CFR § 1024.17(i)(4)(iii).
 
 
This Q&A was contained in the CFPB’s Mortgage Servicing FAQs – version 3, as of June 2, 2021 (which may be updated from time to time).  This may be found on the CFPB’s website here:  https://files.consumerfinance.gov/f/documents/cfpb_mortgage-servicing_frequently-asked-questions.pdf

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