[April]

We are doing a second mortgage where the first mortgage is already in escrow.
1.) Should we disclose the estimated escrow on page 1 of the Loan Estimate with No for being in escrow or should we completely leave them off since the borrower is already in escrow.
2.) On Page 4 of the Closing Disclosure how should we disclose here as well, and if we select no escrow, our only options are because the customer declined it or your lender does not offer one. Neither of these fit our situation because the customer is already in escrow with us, so they didn’t decline it nor did we not offer one.

[rcooper]

There isn’t clear guidance on this. We have placed a call with the CFPB for their interpretation. In the meantime, the safest approach is to disclose the estimates and indicate “No” for the escrow. Hopefully we’ll get a response from the CFPB soon.

[Author]

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