RC_LA_EA_300.1 Escrow Analysis
Escrow Analysis examines the process lenders use to determine whether monthly escrow deposits will provide sufficient funds to pay taxes, insurance, and other bills when due. The course begins with a description of the two basics types of escrow analysis: the initial escrow analysis and the annual escrow analysis. Next, the course reviews some of the laws that affect the handling of escrow accounts, including the Real Estate Settlement Procedures Act, the Truth in Lending Act, the Homeowners Protection Act or The PMI Act, and bankruptcy laws. It then provides an overview of Real Estate Settlement Procedures Act (RESPA) regulations and RESPA's impact on escrow analysis. Next, the required method of escrow analysis - the aggregate method - is described. The course goes on to define escrow shortages, surpluses, and deficiencies and how these are handled. It then provides an overview of initial and annual escrow analysis statements. Finally, the course lays out the steps involved in an escrow analysis.
This is a single-family/residential course.
Seat time approximately 1.5 hours.