Under HPML rules, an escrow account must be established for the payment of property taxes and insurance. For how long must this escrow account be maintained?
Correct Answer
C) 5 years
Under TILA Section 1026.35(b)(3), the escrow account requirement for HPMLs must be maintained for a minimum of 5 years from the date of consummation.
Why This Is the Correct Answer
Under TILA Section 1026.35(b)(3), the escrow account requirement for HPMLs must be maintained for a minimum of 5 years from the date of consummation.
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A servicer mistakenly applies a borrower's payment to principal instead of escrow, causing the escrow account to become deficient. The servicer discovers the error 45 days later. Under RESPA servicing rules, the servicer must:
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A lender receives a mortgage application where the applicant lists 'homemaker' as their occupation but provides no income information. The spouse works and will be a co-borrower. The lender requests income documentation from the homemaker applicant. This request: