Bureau updates FAQs on mortgage servicing with focus on escrow accounts

Frequently asked questions (FAQs) about escrow accounts in mortgage servicing were made public Thursday by the federal consumer financial protection agency, concerning compliance under Regulations X and Z (Real Estate Settlement Procedures Act [RESPA] and Truth in Lending Act [TILA], respectively).

The new questions added 11 pages to the Consumer Financial Protection Bureau’s (CFPB) list of mortgage servicing FAQs with 24 separate questions. The new queries cover such escrow account topics as: definition of escrow accounts under Reg X; escrow account computation year under Reg X; when a servicer needs to send the annual statement; charges a servicer may require a borrower to deposit into an account; disbursement dates; information to include in an initial statement (and an annual statement); and definition of a “short-year statement.”

Other topics addressed include account analysis; deficiencies, shortages and surpluses; and public guidance documents.

Mortgage servicing FAQs, last updated June 2, 2021