For a RESPA-covered escrow account, the ordinary annual computation year ends March 31. No default, foreclosure or bankruptcy exemption applies, and this is not a short-year statement. The servicer first submits the annual statement to the borrower on May 8. Was it timely?
Correct Answer
A) Late: the statement was due within 30 days of the computation year
A. It is late; the ordinary deadline was April 30. Count 30 days after March 31 to reach April 30. The first submission on May 8 is eight days after that deadline. Scope and exceptions: Section 1024.17(i)(2) contains exemptions and (i)(4) addresses short-year statements. The revised facts exclude these different situations. Source: 1024.17(i) introductory paragraph; (i)(2), (i)(4) — https://www.consumerfinance.gov/rules-policy/regulations/1024/17/
Why This Is the Correct Answer
A. It is late; the ordinary deadline was April 30. Count 30 days after March 31 to reach April 30. The first submission on May 8 is eight days after that deadline. Scope and exceptions: Section 1024.17(i)(2) contains exemptions and (i)(4) addresses short-year statements. The revised facts exclude these different situations.
Why the Other Options Are Wrong
Option B: On time: the statement is due within 60 days of the computation year
It substitutes 60 days for the ordinary 30-day rule.
Option C: On time: annual statements are due by 30 June whatever the year end
The rule is tied to this account’s computation year, not a universal June date.
Option D: Late: the statement was due within 15 days of the computation year
It uses a 15-day period that is not the stated rule.
Exam Tip
Identify the statement type before counting its deadline.
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