Escrow 101 – Part 3 of 3

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By Michael J. McCormick, Esq., McCalla Raymer Leibert Pierce, LLC (Roswell, GA)

Frequently Asked Questions

1) Is a servicer required to have a borrower maintain a reserve or cushion? NO. See Regulation X Section (c)(1)(ii).1

A lender or servicer (hereafter servicer) shall not require a borrower to deposit into any escrow account, created in connection with a federally related mortgage loan, more than the following amounts:

(ii) Charges during the life of the escrow account . . .

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