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I was looking for some guidance on completing the Escrow Account section of the CD on P4 of the CD. In particular when a customer does NOT have Escrow. This section is addressed in 12 CFR 1026.38(l)(7)(i)(A)(5) but I’m finding very little detail about when to mark “you declined it” or “your lender does not offer on” as I’m not finding any definition or directive as to what constitutes “offer”.
In my mind, if we would escrow then we should mark “you declined it” even if we are not actively offering that feature to a borrower.
For example, in my opinion, on a RAW land loan we might not actively seek out for them to escrow but if they wanted we would…that would mean we would need to mark “you declined it”. If we had a 9-month construction loan then we would not escrow that type of loan due to the short timeframe of the loan and thus we would need to mark “your lender does not offer one.”
What are your thoughts and do you have anything that would give any directives?
Escrow on TRID disclosures is tricky as it was not really addressed by the CFPB when the rules were released or with any subsequent updates. The only guidance is that if there is no required Escrow you still have to show payments. If you are a FI that does not offer (meaning you are exempt from Escrow requirements) to Escrow you select that option on the form.
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