(i) If the default is less than the payment of the escrow account of less than one month, then the Service Provider: (2) No annual settlement in case of default, seizure or bankruptcy. This subsection (i)(2) contains an exception to the provisions of § 1024.17(i)(1). If the Borrower is more than 30 days overdue at the time of the escrow account analysis, the Service Provider is exempt from the obligation to provide the Borrower with an annual escrow account statement in accordance with § 1024.17 (i). This exemption also applies in situations where the service provider has brought an enforcement action under the underlying federal mortgage or where the borrower is subject to bankruptcy proceedings. If the service provider does not issue an annual statement in accordance with this exemption and the loan is subsequently reinstated or comes into effect, the service provider must provide an account history since the last annual statement (which may be greater than 1 year) within 90 days of the date the account became current. Escrow account analysis refers to the accounting that a service provider makes in the form of a pro balance for an escrow account at: (A) The service provider first projects a test balance for the account as a whole in the following calculation year (a test series balance). In doing so, the service provider assumes that it will make estimated payments no later than the earlier of the deadline in order to take advantage of the discounts, if any, or the deadline to avoid a penalty. The Servicer does not use a pre-release limit on these payment days. The service provider also assumes that the borrower will make monthly payments equal to one-twelfth of the estimated annual payments in the escrow account. (1) The format and a complete example of an initial escrow account statement are set out in the public guidance documents entitled « Initial Statement of Escrow Account Disclosure – Format » and « Initial Statement of Disclosure of Escrow Account – Example » available in accordance with the instructions in the definition of public guidance documents in § 1024.2. (i) The original escrow statement includes the amount of the borrower`s monthly mortgage payment and the portion of the monthly payment that passes to the escrow account, and includes the estimated taxes, insurance premiums and other fees that the service provider reasonably expects to pay from the escrow account during the year in which the escrow account is calculated, and the expected payment dates of these fees. The original escrow statement shall indicate the amount that the service provider chooses as the buffer. The bank statement contains a pro balance for the account.
(1) If the terms of a federal mortgage require the borrower to make payments to an escrow account, the service provider shall pay the payments on time, that is, no later than the deadline to avoid a penalty, as long as the borrower`s payment is not more than 30 days overdue. (ii) Lowest monthly balance. According to the aggregate analysis, the lowest monthly target balance for the account must be less than or equal to one-sixth of the estimated annual payments in the escrow account or a lower amount determined by state law or mortgage document. The target balances that the repairer deducts with these steps result in the maximum limit for the escrow account. Appendix E to this part illustrates these steps. (i) If an escrow account analysis reveals a surplus, the service provider will refund the excess to the borrower within 30 days of the date of the analysis if the excess is greater than or equal to $50 ($50). If the excess is less than $50 ($50), the service provider can repay that amount to the borrower or offset that amount with the following year`s escrow payments. Escrow account means any account that a service provider creates or controls on behalf of a borrower to pay taxes, insurance premiums (including flood insurance) or other fees related to a federal mortgage, including fees that the borrower and service provider have voluntarily agreed that the service provider should collect and pay. The definition includes any account created for this purpose, including an « escrow account », a « reserve account », a « garnishment account » or any other term in different locations. An « escrow account » includes any agreement in which the service provider adds a portion of the borrower`s payments to the principal and then deducts the payments for the items in the escrow account from the principal. For the purposes of this section, the term « escrow account » excludes any account that is under the full control of the borrower. Kil A service provider will receive notice of termination or non-renewal from the borrower`s insurance company before payment of the borrower`s risk insurance is due.
1. Examples of reasonable grounds to assume that a policy has been terminated or not renewed. Examples where a service provider has reasonable grounds to believe that a borrower`s risk insurance has been terminated or has not been renewed for reasons other than non-payment of premium fees: (iii) The total amount paid into the escrow account in the last year of calculation; (i) If an escrow account analysis reveals that there is no less than one monthly escrow payment, the service provider has three possible action plans: Instalment payment means one of two or more payments payable in an escrow account in an escrow account in an escrow account during a billing year. An example of a instalment payment is when a jurisdiction charges taxes quarterly. (1) Analysis of escrow accounts. For each escrow account, the service provider performs an escrow account analysis to determine if there is a surplus, default or default. (iii) After an initial or annual fiduciary analysis has been conducted, the service provider and the borrower may enter into a voluntary agreement for the upcoming escrow year under which the borrower may deposit funds into the escrow account for that year that are greater than the limits set out in paragraph c of this Division. Such an agreement only extends to one fiduciary year, but a new voluntary agreement can be concluded after the next fiduciary analysis. The voluntary arrangement does not change the way surpluses are to be treated when the next fiduciary analysis is conducted at the end of the trust year covered by the voluntary agreement. (2) Fiduciary analysis when creating an escrow account. Before establishing an escrow account, the service provider must conduct an analysis of the escrow account to determine the amount that the borrower must deposit into the escrow account (subject to the restrictions of subsection (c) (1) (i) of this Section) and the amount of the borrower`s regular payments to the escrow account (subject to the restrictions of subsection (c) (1) (ii) of this Section).
When analyzing the escrow account, the service provider estimates the payment amounts in accordance with subsection (c) (7) of this section. In accordance with paragraph (k) of this Section, the Service Provider must use a date no later than the deadline to avoid a penalty as a receiver payment date and to comply with any other requirements of paragraph (k) of this Section. Once the initial escrow account analysis is complete, the service provider must prepare an initial escrow statement and provide it to the borrower as set out in paragraph (g) of this section. The Service Provider will use the escrow account analysis to determine if there is a surplus, deficiency or default and will make any adjustments to the Account in accordance with paragraph (f) of this Section. (i) In general. Except as provided in paragraph (k)(5)(iii) of this Division, a service provider may not take out compulsory insurance in respect of a borrower whose mortgage payment is more than 30 days overdue but who has established an escrow account for the payment of risk insurance within the meaning of section 1024.31, as that term is defined in section 1024.37(a). unless a service provider is unable to disburse funds from the borrower`s escrow account to ensure that the borrower`s risk insurance premium fees are paid on time. (A) In case of incapacity. A service provider is considered unable to disburse funds from a borrower`s escrow account to ensure that the borrower`s risk insurance premiums are paid on time only if the service provider has reasonable grounds to believe that the borrower`s risk insurance has been terminated (or not renewed) for reasons other than non-payment of premium fees, or that the borrower`s property is empty. East.. .
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