source:
  type: guide
  id: fnma-sel-b2-1.5-04
  authority: Fannie Mae Selling Guide B2-1.5-04 — Escrow Accounts
  description: Fannie Mae Selling Guide B2-1.5-04 — Escrow Accounts.
  coverage_tier: operative
obligations:
- id: fnma-sel-b2-1.5-04-full
  canonical_id: fnma-sel-b2-1.5-04-full
  section: Fannie Mae Selling Guide B2-1.5-04 — Escrow Accounts
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B2-1.5-04 — Escrow Accounts
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B2-1.5-04, Escrow Accounts (04/01/2020) Introduction This topic
      contains information on escrow accounts, including: Escrow Accounts Escrow Waivers
      Escrow Accounts First mortgages generally must provide for the deposit of escrow
      funds to pay as they come due, including taxes, ground rents, premiums for property
      insurance, and premiums for ﬂood insurance. However, escrow deposits for the
      payment of premiums for borrower-purchased mortgage insurance (if applicable)
      are mandatory. For the calculation of the monthly real estate tax payment lenders
      must comply with all federal and state regulations in calculating the amount
      to be collected for any established escrow account. Fannie Mae does not require
      an escrow deposit for property or ﬂood insurance premiums for an individual
      unit in a condo, co-op, or PUD when the project in which the unit is located
      is covered by a blanket insurance policy purchased by the homeowners’ association
      or co-op corporation. If a special assessment levied against the property was
      not paid at loan closing, the borrower’s payment must include appropriate accruals
      to ensure that any estimated annual payment toward the assessment will be accumulated
      by the time it comes due. For certain reﬁnance transactions where the borrower
      is ﬁnancing real estate taxes in the loan amount, an escrow account is required,
      subject to applicable laws or regulations. See B2-1.3-03, Cash-Out Reﬁnance
      Transactions for more information. Escrow Waivers Fannie Mae advocates the establishment
      of an escrow account for the payment of taxes and insurance, particularly for
      borrowers with blemished credit histories or ﬁrst-time homeowners. Unless required
      by law, lenders may waive escrow account requirements for an individual ﬁrst
      mortgage, provided the standard escrow provision remains in the mortgage loan
      legal documents. Lenders cannot waive Published May 6, 2026 221 an escrow account
      for certain reﬁnance transactions (see above) or for the payment of premiums
      for borrower- purchased mortgage insurance (if applicable). When the requirement
      for an escrow account is waived, the lender must retain Fannie Mae’s right to
      enforce the requirement in appropriate circumstances. Lenders must have a written
      policy governing the circumstances under which escrow accounts may be waived.
      When a lender permits escrow waivers, subject to the mortgage documents and
      applicable law, the lender’s written policies must provide that the waiver not
      be based solely on the LTV ratio of a loan, but also on whether the borrower
      has the ﬁnancial ability to handle the lump sum payments of taxes, insurance,
      and other items described above. Recent Related Announcements The table below
      provides references to recently issued Announcements that are related to this
      topic. Announcements Issue Date Announcement SEL-2020-02 April 01, 2020 Announcement
      SEL-2019-09 December 04, 2019 Announcement SEL-2019-07 August 07, 2019'
  judgment: false
