What You Need to Know About Escrows

Register by December 1st and take advantage of our Early Bird Pricing!

All registrations to Compliance Resource webinars include five live connections AND the recording of the webinar (guaranteed for one year).

What You Need to Know About Escrows has been submitted to ABA Professional Certifications for CE credit review and is pending approval. Once we receive notification of the credit approval, we will notify attendees.

WHAT?

The Real Estate Settlement Procedures Act (Regulation X) has contained rules for administering escrow accounts for many years. Both the Truth in Lending Act (Regulation Z) and the interagency flood regulations contain provisions that require escrows in connection with certain loans. The Real Estate Settlement Procedures Act and Regulation X have requirements for establishing and maintaining escrow accounts. Some of those rules are changing

Higher-Priced Mortgage Loans – On January 19, 2021, the Consumer Financial Protection Bureau (CFPB) issued a final rule amending section 1026.35 of Regulation Z to implement a requirement of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The final rule exempts certain insured depository institutions and insured credit unions from the requirement to establish escrow accounts for certain higher-priced mortgage loans (HPMLs).

It exempts from the HPML escrow requirement any loan made by an insured depository institution or insured credit union and secured by a first lien on the principal dwelling of a consumer if

• The institution has assets of $10 billion or less;
• The institution and its affiliates originated 1,000 or fewer loans secured by a first lien on a principal dwelling during the preceding calendar year; and
• Certain of the existing HPML escrow exemption criteria are met.

Flood Insurance Frequently Asked Questions – On June 26, 2020 the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration released proposed new and revised Interagency Questions and Answers Regarding Flood Insurance (FAQs). The updates include, but are not limited to, escrow requirements. The comment period ended on September 4, 2020. Final FAQs are expected soon.

This webinar covers all of the escrow rules, including the long standing and the recently revised requirements of the flood regulations, Regulation X and Regulation Z.

WHY?

This program provides comprehensive coverage of the flood regulations, Regulation X and Regulation Z escrow rules. We explain, step-by-step, how to establish, maintain, and cancel escrow accounts under the amended requirements. In addition, suggestions for avoiding violations and penalties are provided.

Program participants receive a detailed manual that provides a thorough explanation of all the escrow rules. Both the program and the program materials are updated for the revisions resulting from the final rule

PROGRAM CONTENT

Upon completion of the program participants understand:

• Which loans are required by Regulation Z and the flood regulations to have escrow accounts, and which are exempt;
• The limitations on the amount of the required escrow payments at origination and over the life of the loan;
• How to conduct an escrow analysis;
• How to determine an escrow account computation year;
• The calculation of the amount of the allowed cushion;
• The rules for preparing the initial escrow account disclosure statement;
• The TRID rules regarding the escrow notices required in the Closing Disclosure;
• The expanded Flood Hazard Notice for Escrow information;
• The flood insurance option to escrow notice;
• How to prepare the annual escrow account statement;
• How to resolve a surplus, a deficiency or a shortage;
• Regulation X rules for timely escrow payments and treatment of escrow balances;
• Regulation Z rules regarding escrow cancellation notices;
• The recordkeeping rules for escrow accounts;
• The penalties for the failure to submit an initial or annual escrow account statement; and
• The proposed revisions to the Regulation Z rules made by the EGRRCPA.

WHO?

The program is designed for compliance officers, operations personnel, mortgage loan officers, loan originators and others involved in opening and maintaining escrow accounts for mortgage loans.

*This program will start at 2:00 PM EST, 1:00 PM CST, 12:00 PM MST, or 11:00 AM PST

**Recording Included

This webinar will be recorded and sent to all registrants. You will receive links to the recording following the program. These recordings have unlimited viewings and are available for up to one year.

Register by December 1st and take advantage of our Early Bird Pricing!