What You Need To Know About Escrows

Escrow compliance is tough!  Not many rules cover such a broad scope over the full life of the loan.  Escrowing touches nearly every element of loan compliance in some way:  RESPA, TILA, TRID, HPMLs, Flood, and Fair Lending.  That’s an intimidating list! Moreover, it is a high-stakes endeavor.  Getting it wrong causes consumer harm and potential reputational damage.  Failing to accurately pay taxes when due will cause fines and penalties, and make your bank look inept in its fiduciary capacity.  Failing to accurately disclose escrow items or properly analyze escrow accounts will bring regulatory violations and upset borrowers.  There is a lot on the line!

Many people are involved in the escrow process, and each one of their touch points invites opportunity for error.  Are staff members getting the right tax and insurance figures?  Are lenders explaining it correctly to borrowers (especially if there will be a “shock” to come)?  Are servicing staff disbursing correctly and on time?  Are operations systems producing accurate statements?  And overwhelmed compliance staff, do you understand how it all works, to help everyone else get their part right?  Can you confirm the accuracy of the whole spectrum of escrow compliance – even the aggregate analysis?!

No? You are in good company.  Join this two-hour webinar to gain the knowledge and confidence to come out on top!  It will be time well spent covering:

• RESPA:
  • Big picture: The difficulty of applying escrowing rules to taxes paid in arrears
  • Escrow analysis:  Why, when, and how
    • The escrow account computation year – very important!
    • Allowable figures to use
    • Cushions
    • Calculations
    • Pre-accrual is a big no-no
  • Payment shock:  why it happens and what can be done about it
  • Escrow statements: why, when, and how
  • Escrow balances:  The Goldilocks test:
    • Too much
    • Too little
    • Just right
  • Timely escrow payments

• TRID
  • Escrow’s impact on the LE and CD
    • Sometimes you use math prescribed by TRID rules
    • Sometimes you use math prescribed by RESPA
  • Aggregate adjustments

• Reg Z
  • Escrow Closing Notice
  • HPML Escrow rules

• Flood Insurance
  • Mandatory escrow rules
  • Exceptions and exemptions

All topics will be presented clearly and concisely, from the perspective and real-life experience of a veteran compliance pro (25 years!) who, like you, is currently working in the trenches of her bank as the voice of compliance.