Reply To: Annual escrow analysis and past due loan


RESPA does not authorize you take money from the escrow and apply it for other purposes. The customer’s money in the escrow account is placed there for a very specific purpose, such as paying taxes or insurance. If there is an overage, a short cycle statement can be run to determine the exact amount of the escrow, then the surplus must be sent to the customer (check or credit to a deposit account). Then, if the customer chooses, they could apply the surplus to resolve the past due status.