A lender discovers an escrow account shortage of $480 during the annual analysis. What is the maximum monthly increase the lender can impose to collect this shortage?
Correct Answer
B) $40 per month
Under RESPA, escrow shortages must be collected over at least 12 months unless the borrower agrees to a shorter period. $480 ÷ 12 months = $40 per month maximum increase.
Why This Is the Correct Answer
Under RESPA, escrow shortages must be collected over at least 12 months unless the borrower agrees to a shorter period. $480 ÷ 12 months = $40 per month maximum increase.
More Mortgage Knowledge Questions
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