Mortgage Servicing Escrow Accts Analysis 1– What is an escrow account analysis?

Compliance > Regulation X and Z - Servicing
Q:   What is an escrow account analysis?
 
A:   (UPDATED 6/2/2021): An escrow account analysis is the accounting a servicer conducts in the form of a trial running balance for an escrow account to:
  • Determine the appropriate target balances;
  • Compute the borrower’s monthly payments for the next escrow account computation year and any deposits needed to establish or maintain the account; and
  • Determine whether a shortage, surplus, or deficiency exists.
12 CFR § 1024.17(b).
 
 
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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