N.Y. Comp. Codes R. & Regs. tit. 3 § 419.2

Current through Register Vol. 46, No. 43, October 23, 2024

Section 419.2 - Escrow accounts

(a) A shortage, surplus or deficiency in a borrower's escrow account shall be addressed by a servicer in accordance with the provisions of RESPA, 12 C.F.R. section 1024.17(f). Alternatively, with the consent of the borrower, an escrow account surplus may be applied to the principal balance.

(b) If a servicer advances funds in paying a disbursement, which is not the result of a borrower's payment default under the underlying mortgage document, then the servicer shall conduct an escrow account analysis to determine the extent of the deficiency and shall provide a written explanation to the borrower. The servicer shall wait 30 calendar days after providing the written explanation to the borrower before seeking payment of the funds necessary to correct the deficiency from the borrower.

N.Y. Comp. Codes R. & Regs. Tit. 3 § 419.2

Amended New York State Register December 18, 2019/Volume XLI, Issue 51, eff. 12/18/2019