A Virginia commitment agreement in 2026 is silent on whether any funds will be escrowed. Must the commitment disclose whether and why funds will be escrowed?
Correct Answer
B) Deficient: whether funds are escrowed and why is a required item
The commitment agreement must state whether or not funds are to be escrowed and for what purpose, alongside whether private mortgage insurance is required. Other choices: the rule puts it at commitment stage; a borrower preference does not remove the disclosure; and no institution is named by the rule. Source: 10VAC5-160-30(A)(6)
Why This Is the Correct Answer
The commitment agreement must state whether or not funds are to be escrowed and for what purpose, alongside whether private mortgage insurance is required. Other choices: the rule puts it at commitment stage; a borrower preference does not remove the disclosure; and no institution is named by the rule. Source: 10VAC5-160-30(A)(6)
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