Escrow: Your borrowers either want it or don’t. Your bank may or may not require it on all consumer real estate loans, and some regulations require it but provide an exception!
Escrow accounting and disclosure rules are complex and addressed by multiple regulations which include RESPA, Regulation Z, and the Flood Disaster Protection Act. This session will give you the tools needed to nail down the numerous accounting and disclosure requirements.
The escrow discussion includes properly disclosing taxes, insurance, and other items on the required TRID documents, how to generate the initial escrow account statement, and numerous components of managing the escrow account after origination. The escrow analysis process, including how to resolve shortages, surpluses, and deficiencies, will be explained. Lastly, examiner-identified escrow accounting rule violations will be reviewed to ensure that these weaknesses don’t exist in your processes.
If you are looking to dive into escrow compliance, this session will contain the checklists and tools needed to ensure your institution has a solid foundation of the regulatory requirements, but most importantly, knowing where to look to resolve questions.
What You’ll Learn
- Properly disclose escrow items on the LE and CD utilizing TRID rules
- Generate an accurate initial escrow account statement
- Understand the differences between single-item and aggregate analysis
- Determine if the cushion limits comply with either the contractual or regulatory requirements
- Resolve shortages, surpluses, or deficiencies resulting from escrow analysis
- Perform system testing to ensure software systems are accurately conducting escrow account analysis
- Identify escrow requirements under RESPA, TILA, and the Flood Disaster Protection Act
- Review escrow statements for required content
- Test for examiner-identified escrow accounting rule issues
Who Should Attend
This informative session is designed for compliance officers, auditors, and lending personnel that disclose, calculate, and analyze escrow information for mortgage loans.