source:
  type: regulation
  id: reg-x-1024.17
  authority: 12 CFR §1024.17 — Escrow accounts
  description: 'Regulation X §1024.17 governs escrow accounts: 1/12 monthly + 1/6

    cushion payment limit, aggregate accounting, no pre-accrual, initial

    escrow account statement at settlement or within 45 days, annual

    escrow account statement within 30 days of computation-year end,

    $50/30-day surplus refund rule, timely disbursements on or before

    the deadline to avoid a penalty.

    '
obligations:
- id: reg-x-1024.17-a
  canonical_id: reg-x-1024.17-a
  section: 12 CFR §1024.17(a)
  description: '(a): (a) General. This section sets out the requirements for an escrow account that a
    lender establishes in connection with a federally related mortgage loan . It sets limits for escrow
    accounts using calculations based on monthly payments and disbursements within a calendar year. If
    an escrow account in…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (a) General. This section sets out the requirements for an escrow account that a
      lender establishes in connection with a federally related mortgage loan . It sets limits for escrow
      accounts using calculations based on monthly payments and disbursements within a calendar year.
      If an escrow account involves biweekly or any other payment period, the requirements in this section
      shall be modified accordingly. A Public Guidance Document entitled “Biweekly Payments—Example” provides
      examples of biweekly accounting and a Public Guidance Document entitled “Annual Escrow Account Disclosure
      Statement—Example” provides examples of a 3-year accounting cycle that may be used in accordance
      with paragraph (c)(9) of this section. A Public Guidance Document entitled “Consumer Disclosure
      for Voluntary Escrow Account Payments” provides a model disclosure format that originators and servicers
      are encouraged, but not required, to provide to consumers when the originator or servicer anticipates
      a substantial increase in disbursements from the escrow account after the first year of the loan.
      The disclosures in that model format may be combined with or included in the Initial Escrow Account
      Statement required in § 1024.17(g).
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-b
  canonical_id: reg-x-1024.17-b
  section: 12 CFR §1024.17(b)
  description: '(b): (b) Definitions. As used in this section: Aggregate (or) composite analysis, hereafter
    called aggregate analysis, means an accounting method a servicer uses in conducting an escrow account
    analysis by computing the sufficiency of escrow account funds by analyzing the account as a whole.
    Appendix E t…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: '(b) Definitions. As used in this section: Aggregate (or) composite analysis, hereafter
      called aggregate analysis, means an accounting method a servicer uses in conducting an escrow account
      analysis by computing the sufficiency of escrow account funds by analyzing the account as a whole.
      Appendix E to this part sets forth examples of aggregate escrow account analyses. Annual escrow
      account statement means a statement containing all of the information set forth in § 1024.17(i)
      . As noted in § 1024.17(i) , a servicer shall submit an annual escrow account statement to the borrower
      within 30 calendar days of the end of the escrow account computation year , after conducting an
      escrow account analysis . Cushion or reserve (hereafter cushion) means funds that a servicer may
      require a borrower to pay into an escrow account to cover unanticipated disbursements or disbursements
      made before the borrower''s payments are available in the account, as limited by § 1024.17(c) .
      Deficiency is the amount of a negative balance in an escrow account . As noted in § 1024.17(f) ,
      if a servicer advances funds for a borrower, then the servicer must perform an escrow account analysis
      before seeking repayment of the deficiency. Delivery means the placing of a document in the United
      States mail, first-class postage paid, addressed to the last known address of the recipient. Hand
      delivery also constitutes delivery . Disbursement date means the date on which the servicer actually
      pays an escrow item from the escrow account . Escrow account means any account that a servicer establishes
      or controls on behalf of a borrower to pay taxes, insurance premiums (including flood insurance),
      or other charges with respect to a federally related mortgage loan , including charges that the
      borrower and servicer have voluntarily agreed that the servicer should collect and pay. The definition
      encompasses any account established for this purpose, including a “trust account”, “reserve account”,
      “impound account”, or other term in different localities. An “escrow account” includes any arrangement
      where the servicer adds a portion of the borrower''s payments to principal and subsequently deducts
      from principal the disbursements for escrow account items. For purposes of this section, the term
      “escrow account” excludes any account that is under the borrower''s total control . Escrow account
      analysis means the accounting that a servicer conducts in the form of a trial running balance for
      an escrow account to: (1) Determine the appropriate target balances; (2) Compute the borrower''s
      monthly payments for the next escrow account computation year and any deposits needed to establish
      or maintain the account; and (3) Determine whether shortages, surpluses or deficiencies exist. Escrow
      account computation year is a 12-month period that a servicer establishes for the escrow account
      beginning with the borrower''s initial payment date. The term includes each 12-month period thereafter,
      unless a servicer chooses to issue a short year statement under the conditions stated in § 1024.17(i)(4)
      . Escrow account item or separate item means any separate expenditure category, such as “taxes”
      or “insurance”, for which funds are collected in the escrow account for disbursement. An escrow
      account item with installment payments, such as local property taxes, remains one escrow account
      item regardless of multiple disbursement dates to the tax authority. Initial escrow account statement
      means the first disclosure statement that the servicer delivers to the borrower concerning the borrower''s
      escrow account . The initial escrow account statement shall meet the requirements of § 1024.17(g)
      and be in substantially the format set forth in § 1024.17(h) . Installment payment means one of
      two or more payments payable on an escrow account item during an escrow account computation year
      . An example of an installment payment is where a jurisdiction bills quarterly for taxes. Payment
      due date means the date each month when the borrower''s monthly payment to an escrow account is
      due to the servicer . The initial payment date is the borrower''s first payment due date to an escrow
      account . Penalty means a late charge imposed by the payee for paying after the disbursement is
      due. It does not include any additional charge or fee imposed by the payee associated with choosing
      installment payments as opposed to annual payments or for choosing one installment plan over another.
      Pre-accrual is a practice some servicers use to require borrowers to deposit funds, needed for disbursement
      and maintenance of a cushion, in the escrow account some period before the disbursement date . Pre-accrual
      is subject to the limitations of § 1024.17(c) . Shortage means an amount by which a current escrow
      account balance falls short of the target balance at the time of escrow analysis. Single-item analysis
      means an accounting method servicers use in conducting an escrow account analysis by computing the
      sufficiency of escrow account funds by considering each escrow item separately. Appendix E to this
      part sets forth examples of single-item analysis . Submission (of an escrow account statement) means
      the delivery of the statement. Surplus means an amount by which the current escrow account balance
      exceeds the target balance for the account. System of recordkeeping means the servicer ''s method
      of keeping information that reflects the facts relating to that servicer ''s handling of the borrower''s
      escrow account , including, but not limited to, the payment of amounts from the escrow account and
      the submission of initial and annual escrow account statements to borrowers. Target balance means
      the estimated month end balance in an escrow account that is just sufficient to cover the remaining
      disbursements from the escrow account in the escrow account computation year , taking into account
      the remaining scheduled periodic payments, and a cushion, if any. Trial running balance means the
      accounting process that derives the target balances over the course of an escrow account computation
      year . Section 1024.17(d) provides a description of the steps involved in performing a trial running
      balance .'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-c
  canonical_id: reg-x-1024.17-c
  section: 12 CFR §1024.17(c)
  description: '(c): (c) Limits on payments to escrow accounts. (1) A lender or servicer (hereafter servicer)
    shall not require a borrower to deposit into any escrow account , created in connection with a federally
    related mortgage loan , more than the following amounts:'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: '(c) Limits on payments to escrow accounts. (1) A lender or servicer (hereafter servicer)
      shall not require a borrower to deposit into any escrow account , created in connection with a federally
      related mortgage loan , more than the following amounts:'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) Charges at settlement or upon creation of an escrow account. At the time a servicer
    creates an escrow account for a borrower, the servicer may charge the borrower an amount sufficient
    to pay the charges respecting the mortgaged property , such as taxes and insurance, which are attributable
    to th…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (i) Charges at settlement or upon creation of an escrow account. At the time a servicer
      creates an escrow account for a borrower, the servicer may charge the borrower an amount sufficient
      to pay the charges respecting the mortgaged property , such as taxes and insurance, which are attributable
      to the period from the date such payment(s) were last paid until the initial payment date. The “amount
      sufficient to pay” is computed so that the lowest month end target balance projected for the escrow
      account computation year is zero (-0-) (see Step 2 in appendix E to this part). In addition, the
      servicer may charge the borrower a cushion that shall be no greater than one-sixth ( 1/6 ) of the
      estimated total annual payments from the escrow account . (ii) Charges during the life of the escrow
      account. Throughout the life of an escrow account , the servicer may charge the borrower a monthly
      sum equal to one-twelfth ( 1/12 ) of the total annual escrow payments which the servicer reasonably
      anticipates paying from the account. In addition, the servicer may add an amount to maintain a cushion
      no greater than one-sixth ( 1/6 ) of the estimated total annual payments from the account. However,
      if a servicer determines through an escrow account analysis that there is a shortage or deficiency,
      the servicer may require the borrower to pay additional deposits to make up the shortage or eliminate
      the deficiency, subject to the limitations set forth in § 1024.17(f) . (2) Escrow analysis at creation
      of escrow account. Before establishing an escrow account , the servicer must conduct an escrow account
      analysis to determine the amount the borrower must deposit into the escrow account (subject to the
      limitations of paragraph (c)(1)(i) of this section), and the amount of the borrower's periodic payments
      into the escrow account (subject to the limitations of paragraph (c)(1)(ii) of this section). In
      conducting the escrow account analysis , the servicer must estimate the disbursement amounts according
      to paragraph (c)(7) of this section. Pursuant to paragraph (k) of this section, the servicer must
      use a date on or before the deadline to avoid a penalty as the disbursement date for the escrow
      item and comply with any other requirements of paragraph (k) of this section. Upon completing the
      initial escrow account analysis , the servicer must prepare and deliver an initial escrow account
      statement to the borrower, as set forth in paragraph (g) of this section. The servicer must use
      the escrow account analysis to determine whether a surplus , shortage , or deficiency exists and
      must make any adjustments to the account pursuant to paragraph (f) of this section. (3) Subsequent
      escrow account analyses. For each escrow account , the servicer must conduct an escrow account analysis
      at the completion of the escrow account computation year to determine the borrower's monthly escrow
      account payments for the next computation year, subject to the limitations of paragraph (c)(1)(ii)
      of this section. In conducting the escrow account analysis , the servicer must estimate the disbursement
      amounts according to paragraph (c)(7) of this section. Pursuant to paragraph (k) of this section,
      the servicer must use a date on or before the deadline to avoid a penalty as the disbursement date
      for the escrow item and comply with any other requirements of paragraph (k) of this section. The
      servicer must use the escrow account analysis to determine whether a surplus , shortage , or deficiency
      exists, and must make any adjustments to the account pursuant to paragraph (f) of this section.
      Upon completing an escrow account analysis , the servicer must prepare and submit an annual escrow
      account statement to the borrower, as set forth in paragraph (i) of this section. (4) Aggregate
      accounting required. All servicers must use the aggregate accounting method in conducting escrow
      account analyses. (5) Cushion. The cushion must be no greater than one-sixth ( 1/6 ) of the estimated
      total annual disbursements from the escrow account . (6) Restrictions on pre-accrual. A servicer
      must not practice pre-accrual . (7) Servicer estimates of disbursement amounts. To conduct an escrow
      account analysis , the servicer shall estimate the amount of escrow account items to be disbursed.
      If the servicer knows the charge for an escrow item in the next computation year, then the servicer
      shall use that amount in estimating disbursement amounts. If the charge is unknown to the servicer
      , the servicer may base the estimate on the preceding year's charge, or the preceding year's charge
      as modified by an amount not exceeding the most recent year's change in the national Consumer Price
      Index for all urban consumers (CPI, all items). In cases of unassessed new construction, the servicer
      may base an estimate on the assessment of comparable residential property in the market area. (8)
      Provisions in federally related mortgage documents. The servicer must examine the federally related
      mortgage loan documents to determine the applicable cushion for each escrow account . If any such
      documents provide for lower cushion limits, then the terms of the loan documents apply. Where the
      terms of any such documents allow greater payments to an escrow account than allowed by this section,
      then this section controls the applicable limits. Where such documents do not specifically establish
      an escrow account , whether a servicer may establish an escrow account for the loan is a matter
      for determination by other Federal or State law. If such documents are silent on the escrow account
      limits and a servicer establishes an escrow account under other Federal or State law, then the limitations
      of this section apply unless applicable Federal or State law provides for a lower amount. If such
      documents provide for escrow accounts up to the RESPA limits, then the servicer may require the
      maximum amounts consistent with this section, unless an applicable Federal or State law sets a lesser
      amount. (9) Assessments for periods longer than one year. Some escrow account items may be billed
      for periods longer than one year. For example, servicers may need to collect flood insurance or
      water purification escrow funds for payment every three years. In such cases, the servicer shall
      estimate the borrower's payments for a full cycle of disbursements. For a flood insurance premium
      payable every 3 years, the servicer shall collect the payments reflecting 36 equal monthly amounts.
      For two out of the three years, however, the account balance may not reach its low monthly balance
      because the low point will be on a three-year cycle, as compared to an annual one. The annual escrow
      account statement shall explain this situation (see example in the Public Guidance Document entitled
      “Annual Escrow Account Disclosure Statement—Example”, available in accordance with § 1024.3 ).
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-d
  canonical_id: reg-x-1024.17-d
  section: 12 CFR §1024.17(d)
  description: '(d): (d) Methods of escrow account analysis. (1) The following sets forth the steps servicers
    must use to determine whether their use of aggregate analysis conforms with the limitations in § 1024.17(c)(1)
    . The steps set forth in this section result in maximum limits. Servicers may use accounting procedu…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (d) Methods of escrow account analysis. (1) The following sets forth the steps servicers
      must use to determine whether their use of aggregate analysis conforms with the limitations in §
      1024.17(c)(1) . The steps set forth in this section result in maximum limits. Servicers may use
      accounting procedures that result in lower target balances. In particular, servicers may use a cushion
      less than the permissible cushion or no cushion at all. This section does not require the use of
      a cushion. (2) Aggregate analysis.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) In conducting the escrow account analysis using aggregate analysis, the target
    balances may not exceed the balances computed according to the following arithmetic operations: (A)
    The servicer first projects a trial balance for the account as a whole over the next computation year
    (a trial runnin…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: '(i) In conducting the escrow account analysis using aggregate analysis, the target
      balances may not exceed the balances computed according to the following arithmetic operations:
      (A) The servicer first projects a trial balance for the account as a whole over the next computation
      year (a trial running balance). In doing so the servicer assumes that it will make estimated disbursements
      on or before the earlier of the deadline to take advantage of discounts, if available, or the deadline
      to avoid a penalty . The servicer does not use pre-accrual on these disbursement dates. The servicer
      also assumes that the borrower will make monthly payments equal to one-twelfth of the estimated
      total annual escrow account disbursements. (B) The servicer then examines the monthly trial balances
      and adds to the first monthly balance an amount just sufficient to bring the lowest monthly trial
      balance to zero, and adjusts all other monthly balances accordingly. (C) The servicer then adds
      to the monthly balances the permissible cushion. The cushion is two months of the borrower''s escrow
      payments to the servicer or a lesser amount specified by state law or the mortgage document (net
      of any increases or decreases because of prior year shortages or surpluses, respectively). (ii)
      Lowest monthly balance. Under aggregate analysis, the lowest monthly target balance for the account
      shall be less than or equal to one-sixth of the estimated total annual escrow account disbursements
      or a lesser amount specified by state law or the mortgage document. The target balances that the
      servicer derives using these steps yield the maximum limit for the escrow account . Appendix E to
      this part illustrates these steps.'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-e
  canonical_id: reg-x-1024.17-e
  section: 12 CFR §1024.17(e)
  description: '(e): (e) Transfer of servicing. (1) If the new servicer changes either the monthly payment
    amount or the accounting method used by the transferor (old) servicer , then the new servicer shall
    provide the borrower with an initial escrow account statement within 60 days of the date of servicing
    transfer.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (e) Transfer of servicing. (1) If the new servicer changes either the monthly payment
      amount or the accounting method used by the transferor (old) servicer , then the new servicer shall
      provide the borrower with an initial escrow account statement within 60 days of the date of servicing
      transfer.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) Where a new servicer provides an initial escrow account statement upon the transfer
    of servicing , the new servicer shall use the effective date of the transfer of servicing to establish
    the new escrow account computation year . (ii) Where the new servicer retains the monthly payments
    and accoun…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (i) Where a new servicer provides an initial escrow account statement upon the transfer
      of servicing , the new servicer shall use the effective date of the transfer of servicing to establish
      the new escrow account computation year . (ii) Where the new servicer retains the monthly payments
      and accounting method used by the transferor servicer , then the new servicer may continue to use
      the escrow account computation year established by the transferor servicer or may choose to establish
      a different computation year using a short-year statement. At the completion of the escrow account
      computation year or any short year, the new servicer shall perform an escrow analysis and provide
      the borrower with an annual escrow account statement . (2) The new servicer shall treat shortages,
      surpluses and deficiencies in the transferred escrow account according to the procedures set forth
      in § 1024.17(f) .
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-f
  canonical_id: reg-x-1024.17-f
  section: 12 CFR §1024.17(f)
  description: '(f): (f) Shortages, surpluses, and deficiencies requirements —(1) Escrow account analysis.
    For each escrow account , the servicer shall conduct an escrow account analysis to determine whether
    a surplus , shortage or deficiency exists.'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (f) Shortages, surpluses, and deficiencies requirements —(1) Escrow account analysis.
      For each escrow account , the servicer shall conduct an escrow account analysis to determine whether
      a surplus , shortage or deficiency exists.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) As noted in § 1024.17(c)(2) and (3) , the servicer shall conduct an escrow account
    analysis upon establishing an escrow account and at completion of the escrow account computation year
    . (ii) The servicer may conduct an escrow account analysis at other times during the escrow computation
    year. I…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (i) As noted in § 1024.17(c)(2) and (3) , the servicer shall conduct an escrow account
      analysis upon establishing an escrow account and at completion of the escrow account computation
      year . (ii) The servicer may conduct an escrow account analysis at other times during the escrow
      computation year. If a servicer advances funds in paying a disbursement, which is not the result
      of a borrower's payment default under the underlying mortgage document, then the servicer shall
      conduct an escrow account analysis to determine the extent of the deficiency before seeking repayment
      of the funds from the borrower under this paragraph (f). (2) Surpluses.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) If an escrow account analysis discloses a surplus , the servicer shall, within
    30 days from the date of the analysis, refund the surplus to the borrower if the surplus is greater
    than or equal to 50 dollars ($50). If the surplus is less than 50 dollars ($50), the servicer may
    refund such amount …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (i) If an escrow account analysis discloses a surplus , the servicer shall, within
      30 days from the date of the analysis, refund the surplus to the borrower if the surplus is greater
      than or equal to 50 dollars ($50). If the surplus is less than 50 dollars ($50), the servicer may
      refund such amount to the borrower, or credit such amount against the next year's escrow payments.
      (ii) These provisions regarding surpluses apply if the borrower is current at the time of the escrow
      account analysis . A borrower is current if the servicer receives the borrower's payments within
      30 days of the payment due date . If the servicer does not receive the borrower's payment within
      30 days of the payment due date , then the servicer may retain the surplus in the escrow account
      pursuant to the terms of the federally related mortgage loan documents. (iii) After an initial or
      annual escrow analysis has been performed, the servicer and the borrower may enter into a voluntary
      agreement for the forthcoming escrow accounting year for the borrower to deposit funds into the
      escrow account for that year greater than the limits established under paragraph (c) of this section.
      Such an agreement shall cover only one escrow accounting year, but a new voluntary agreement may
      be entered into after the next escrow analysis is performed. The voluntary agreement may not alter
      how surpluses are to be treated when the next escrow analysis is performed at the end of the escrow
      accounting year covered by the voluntary agreement. (3) Shortages.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) If an escrow account analysis discloses a shortage of less than one month''s
    escrow account payment, then the servicer has three possible courses of action: (A) The servicer may
    allow a shortage to exist and do nothing to change it; (B) The servicer may require the borrower to
    repay the shortage …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: '(i) If an escrow account analysis discloses a shortage of less than one month''s
      escrow account payment, then the servicer has three possible courses of action: (A) The servicer
      may allow a shortage to exist and do nothing to change it; (B) The servicer may require the borrower
      to repay the shortage amount within 30 days; or (C) The servicer may require the borrower to repay
      the shortage amount in equal monthly payments over at least a 12-month period. (ii) If an escrow
      account analysis discloses a shortage that is greater than or equal to one month''s escrow account
      payment, then the servicer has two possible courses of action: (A) The servicer may allow a shortage
      to exist and do nothing to change it; or (B) The servicer may require the borrower to repay the
      shortage in equal monthly payments over at least a 12-month period. (4) Deficiency. If the escrow
      account analysis confirms a deficiency, then the servicer may require the borrower to pay additional
      monthly deposits to the account to eliminate the deficiency.'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) If the deficiency is less than one month''s escrow account payment, then the
    servicer: (A) May allow the deficiency to exist and do nothing to change it; (B) May require the borrower
    to repay the deficiency within 30 days; or (C) May require the borrower to repay the deficiency in
    2 or more equal…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: '(i) If the deficiency is less than one month''s escrow account payment, then the
      servicer: (A) May allow the deficiency to exist and do nothing to change it; (B) May require the
      borrower to repay the deficiency within 30 days; or (C) May require the borrower to repay the deficiency
      in 2 or more equal monthly payments. (ii) If the deficiency is greater than or equal to 1 month''s
      escrow payment, the servicer may allow the deficiency to exist and do nothing to change it or may
      require the borrower to repay the deficiency in two or more equal monthly payments. (iii) These
      provisions regarding deficiencies apply if the borrower is current at the time of the escrow account
      analysis . A borrower is current if the servicer receives the borrower''s payments within 30 days
      of the payment due date . If the servicer does not receive the borrower''s payment within 30 days
      of the payment due date , then the servicer may recover the deficiency pursuant to the terms of
      the federally related mortgage loan documents. (5) Notice of shortage or deficiency in escrow account.
      The servicer shall notify the borrower at least once during the escrow account computation year
      if there is a shortage or deficiency in the escrow account . The notice may be part of the annual
      escrow account statement or it may be a separate document.'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-g
  canonical_id: reg-x-1024.17-g
  section: 12 CFR §1024.17(g)
  description: '(g): (g) Initial escrow account statement —(1) Submission at settlement, or within 45
    calendar days of settlement. As noted in § 1024.17(c)(2) , the servicer shall conduct an escrow account
    analysis before establishing an escrow account to determine the amount the borrower shall deposit
    into the escrow a…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (g) Initial escrow account statement —(1) Submission at settlement, or within 45
      calendar days of settlement. As noted in § 1024.17(c)(2) , the servicer shall conduct an escrow
      account analysis before establishing an escrow account to determine the amount the borrower shall
      deposit into the escrow account , subject to the limitations of § 1024.17(c)(1)(i) . After conducting
      the escrow account analysis for each escrow account , the servicer shall submit an initial escrow
      account statement to the borrower at settlement or within 45 calendar days of settlement for escrow
      accounts that are established as a condition of the loan.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) The initial escrow account statement shall include the amount of the borrower''s
    monthly mortgage payment and the portion of the monthly payment going into the escrow account and
    shall itemize the estimated taxes, insurance premiums, and other charges that the servicer reasonably
    anticipates to b…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (i) The initial escrow account statement shall include the amount of the borrower's
      monthly mortgage payment and the portion of the monthly payment going into the escrow account and
      shall itemize the estimated taxes, insurance premiums, and other charges that the servicer reasonably
      anticipates to be paid from the escrow account during the escrow account computation year and the
      anticipated disbursement dates of those charges. The initial escrow account statement shall indicate
      the amount that the servicer selects as a cushion. The statement shall include a trial running balance
      for the account. (ii) Pursuant to § 1024.17(h)(2) , the servicer may incorporate the initial escrow
      account statement into the HUD -1 or HUD -1A settlement statement. If the servicer does not incorporate
      the initial escrow account statement into the HUD -1 or HUD -1A settlement statement, then the servicer
      shall submit the initial escrow account statement to the borrower as a separate document. (2) Time
      of submission of initial escrow account statement for an escrow account established after settlement.
      For escrow accounts established after settlement (and which are not a condition of the loan), a
      servicer shall submit an initial escrow account statement to a borrower within 45 calendar days
      of the date of establishment of the escrow account .
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-h
  canonical_id: reg-x-1024.17-h
  section: 12 CFR §1024.17(h)
  description: '(h): (h) Format for initial escrow account statement. (1) The format and a completed example
    for an initial escrow account statement are set out in Public Guidance Documents entitled “Initial
    Escrow Account Disclosure Statement—Format” and “Initial Escrow Account Disclosure Statement—Example,”
    available …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: '(h) Format for initial escrow account statement. (1) The format and a completed
      example for an initial escrow account statement are set out in Public Guidance Documents entitled
      “Initial Escrow Account Disclosure Statement—Format” and “Initial Escrow Account Disclosure Statement—Example,”
      available in accordance with the direction in the definition of Public Guidance Documents in § 1024.2
      . (2) Incorporation of initial escrow account statement into HUD-1 or HUD-1A settlement statement.
      Pursuant to § 1024.9(a)(11) , a servicer may add the initial escrow account statement to the HUD
      -1 or HUD -1A settlement statement. The servicer may include the initial escrow account statement
      in the basic text or may attach the initial escrow account statement as an additional page to the
      HUD -1 or HUD -1A settlement statement. (3) Identification of payees. The initial escrow account
      statement need not identify a specific payee by name if it provides sufficient information to identify
      the use of the funds. For example, appropriate entries include: county taxes, hazard insurance,
      condominium dues, etc. If a particular payee, such as a taxing body, receives more than one payment
      during the escrow account computation year , the statement shall indicate each payment and disbursement
      date . If there are several taxing authorities or insurers, the statement shall identify each taxing
      body or insurer ( e.g., “City Taxes”, “School Taxes”, “Hazard Insurance”, or “Flood Insurance,”
      etc. ).'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) Annual escrow account statements. For each escrow account , a servicer shall
    submit an annual escrow account statement to the borrower within 30 days of the completion of the
    escrow account computation year . The servicer shall also submit to the borrower the previous year''s
    projection or initia…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: '(i) Annual escrow account statements. For each escrow account , a servicer shall
      submit an annual escrow account statement to the borrower within 30 days of the completion of the
      escrow account computation year . The servicer shall also submit to the borrower the previous year''s
      projection or initial escrow account statement . The servicer shall conduct an escrow account analysis
      before submitting an annual escrow account statement to the borrower. (1) Contents of annual escrow
      account statement. The annual escrow account statement shall provide an account history, reflecting
      the activity in the escrow account during the escrow account computation year , and a projection
      of the activity in the account for the next year. In preparing the statement, the servicer may assume
      scheduled payments and disbursements will be made for the final 2 months of the escrow account computation
      year . The annual escrow account statement must include, at a minimum, the following (the items
      in paragraphs (i)(1)(i) through (i)(1)(iv) must be clearly itemized):'
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) The amount of the borrower''s current monthly mortgage payment and the portion
    of the monthly payment going into the escrow account ; (ii) The amount of the past year''s monthly
    mortgage payment and the portion of the monthly payment that went into the escrow account ; (iii)
    The total amount paid …'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (i) The amount of the borrower's current monthly mortgage payment and the portion
      of the monthly payment going into the escrow account ; (ii) The amount of the past year's monthly
      mortgage payment and the portion of the monthly payment that went into the escrow account ; (iii)
      The total amount paid into the escrow account during the past computation year; (iv) The total amount
      paid out of the escrow account during the same period for taxes, insurance premiums, and other charges
      (as separately identified);
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-v
  canonical_id: reg-x-1024.17-v
  section: 12 CFR §1024.17(v)
  description: '(v): (v) The balance in the escrow account at the end of the period; (vi) An explanation
    of how any surplus is being handled by the servicer ; (vii) An explanation of how any shortage or
    deficiency is to be paid by the borrower; and (viii) If applicable, the reason(s) why the estimated
    low monthly balanc…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (v) The balance in the escrow account at the end of the period; (vi) An explanation
      of how any surplus is being handled by the servicer ; (vii) An explanation of how any shortage or
      deficiency is to be paid by the borrower; and (viii) If applicable, the reason(s) why the estimated
      low monthly balance was not reached, as indicated by noting differences between the most recent
      account history and last year's projection. Public Guidance Documents entitled “Annual Escrow Account
      Disclosure Statement—Format” and “Annual Escrow Account Disclosure Statement—Example” set forth
      an acceptable format and methodology for conveying this information. (2) No annual statements in
      the case of default, foreclosure, or bankruptcy. This paragraph (i)(2) contains an exemption from
      the provisions of § 1024.17(i)(1) . If at the time the servicer conducts the escrow account analysis
      the borrower is more than 30 days overdue, then the servicer is exempt from the requirements of
      submitting an annual escrow account statement to the borrower under § 1024.17(i) . This exemption
      also applies in situations where the servicer has brought an action for foreclosure under the underlying
      federally related mortgage loan , or where the borrower is in bankruptcy proceedings. If the servicer
      does not issue an annual statement pursuant to this exemption and the loan subsequently is reinstated
      or otherwise becomes current, the servicer shall provide a history of the account since the last
      annual statement (which may be longer than 1 year) within 90 days of the date the account became
      current. (3) Delivery with other material. The servicer may deliver the annual escrow account statement
      to the borrower with other statements or materials, including the Substitute 1098, which is provided
      for Federal income tax purposes. (4) Short year statements. A servicer may issue a short year annual
      escrow account statement (“short year statement”) to change one escrow account computation year
      to another. By using a short year statement a servicer may adjust its production schedule or alter
      the escrow account computation year for the escrow account .
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-i
  canonical_id: reg-x-1024.17-i
  section: 12 CFR §1024.17(i)
  description: '(i): (i) Effect of short year statement. The short year statement shall end the “escrow
    account computation year” for the escrow account and establish the beginning date of the new escrow
    account computation year . The servicer shall deliver the short year statement to the borrower within
    60 days from th…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (i) Effect of short year statement. The short year statement shall end the “escrow
      account computation year” for the escrow account and establish the beginning date of the new escrow
      account computation year . The servicer shall deliver the short year statement to the borrower within
      60 days from the end of the short year. (ii) Short year statement upon servicing transfer. Upon
      the transfer of servicing , the transferor (old) servicer shall submit a short year statement to
      the borrower within 60 days of the effective date of transfer . (iii) Short year statement upon
      loan payoff. If a borrower pays off a federally related mortgage loan during the escrow account
      computation year , the servicer shall submit a short year statement to the borrower within 60 days
      after receiving the payoff funds.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-j
  canonical_id: reg-x-1024.17-j
  section: 12 CFR §1024.17(j)
  description: '(j): (j) Formats for annual escrow account statement. The formats and completed examples
    for annual escrow account statements using single-item analysis (pre-rule accounts) and aggregate
    analysis are set out in Public Guidance Documents entitled “Annual Escrow Account Disclosure Statement—Format”
    and “An…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (j) Formats for annual escrow account statement. The formats and completed examples
      for annual escrow account statements using single-item analysis (pre-rule accounts) and aggregate
      analysis are set out in Public Guidance Documents entitled “Annual Escrow Account Disclosure Statement—Format”
      and “Annual Escrow Account Disclosure Statement—Example”.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-k
  canonical_id: reg-x-1024.17-k
  section: 12 CFR §1024.17(k)
  description: '(k): (k) Timely payments. (1) If the terms of any federally related mortgage loan require
    the borrower to make payments to an escrow account , the servicer must pay the disbursements in a
    timely manner, that is, on or before the deadline to avoid a penalty , as long as the borrower''s
    payment is not more …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (k) Timely payments. (1) If the terms of any federally related mortgage loan require
      the borrower to make payments to an escrow account , the servicer must pay the disbursements in
      a timely manner, that is, on or before the deadline to avoid a penalty , as long as the borrower's
      payment is not more than 30 days overdue. (2) The servicer must advance funds to make disbursements
      in a timely manner as long as the borrower's payment is not more than 30 days overdue. Upon advancing
      funds to pay a disbursement, the servicer may seek repayment from the borrower for the deficiency
      pursuant to paragraph (f) of this section. (3) For the payment of property taxes from the escrow
      account , if a taxing jurisdiction offers a servicer a choice between annual and installment disbursements,
      the servicer must also comply with this paragraph (k)(3). If the taxing jurisdiction neither offers
      a discount for disbursements on a lump sum annual basis nor imposes any additional charge or fee
      for installment disbursements, the servicer must make disbursements on an installment basis. If,
      however, the taxing jurisdiction offers a discount for disbursements on a lump sum annual basis
      or imposes any additional charge or fee for installment disbursements, the servicer may, at the
      servicer 's discretion (but is not required by RESPA to), make lump sum annual disbursements in
      order to take advantage of the discount for the borrower or avoid the additional charge or fee for
      installments, as long as such method of disbursement complies with paragraphs (k)(1) and (k)(2)
      of this section. The Bureau encourages, but does not require, the servicer to follow the preference
      of the borrower, if such preference is known to the servicer . (4) Notwithstanding paragraph (k)(3)
      of this section, a servicer and borrower may mutually agree, on an individual case basis, to a different
      disbursement basis (installment or annual) or disbursement date for property taxes from that required
      under paragraph (k)(3) of this section, so long as the agreement meets the requirements of paragraphs
      (k)(1) and (k)(2) of this section. The borrower must voluntarily agree; neither loan approval nor
      any term of the loan may be conditioned on the borrower's agreeing to a different disbursement basis
      or disbursement date . (5) Timely payment of hazard insurance —(i) In general. Except as provided
      in paragraph (k)(5)(iii) of this section, with respect to a borrower whose mortgage payment is more
      than 30 days overdue, but who has established an escrow account for the payment for hazard insurance,
      as defined in § 1024.31, a servicer may not purchase force-placed insurance, as that term is defined
      in § 1024.37(a), unless a servicer is unable to disburse funds from the borrower's escrow account
      to ensure that the borrower's hazard insurance premium charges are paid in a timely manner. (ii)
      Inability to disburse funds —(A) When inability exists. A servicer is considered unable to disburse
      funds from a borrower's escrow account to ensure that the borrower's hazard insurance premiums are
      paid in a timely manner only if the servicer has a reasonable basis to believe either that the borrower's
      hazard insurance has been canceled (or was not renewed) for reasons other than nonpayment of premium
      charges or that the borrower's property is vacant. (B) When inability does not exist. A servicer
      shall not be considered unable to disburse funds from the borrower's escrow account because the
      escrow account contains insufficient funds for paying hazard insurance premium charges. (C) Recoupment
      of advances. If a servicer advances funds to an escrow account to ensure that the borrower's hazard
      insurance premium charges are paid in a timely manner, a servicer may seek repayment from the borrower
      for the funds the servicer advanced, unless otherwise prohibited by applicable law. (iii) Small
      servicers. Notwithstanding paragraphs (k)(5)(i) and (k)(5)(ii)(B) of this section and subject to
      the requirements in § 1024.37 , a servicer that qualifies as a small servicer pursuant to 12 CFR
      1026.41 (e)(4) may purchase force-placed insurance and charge the cost of that insurance to the
      borrower if the cost to the borrower of the force-placed insurance is less than the amount the small
      servicer would need to disburse from the borrower's escrow account to ensure that the borrower's
      hazard insurance premium charges were paid in a timely manner.
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: reg-x-1024.17-l
  canonical_id: reg-x-1024.17-l
  section: 12 CFR §1024.17(l)
  description: '(l): (l) Discretionary payments. Any borrower''s discretionary payment (such as credit
    life or disability insurance) made as part of a monthly mortgage payment is to be noted on the initial
    and annual statements. If a discretionary payment is established or terminated during the escrow account
    computation…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - cfpb-regulation
  primary_source:
    tier: 1
    authority: 12 CFR §1024.17(c)(1)(ii)
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1024.17
    snapshot_id: 04a6a051fa8cbc09
    fetched_at: '2026-05-22T18:23:12Z'
    content_hash: sha256:a035627a1c7b2f4947dc97865f064e5959ae5b284d3388a4884aa102f816817e
    paragraph_quote: (l) Discretionary payments. Any borrower's discretionary payment (such as credit
      life or disability insurance) made as part of a monthly mortgage payment is to be noted on the initial
      and annual statements. If a discretionary payment is established or terminated during the escrow
      account computation year , this change should be noted on the next annual statement. A discretionary
      payment is not part of the escrow account unless the payment is required by the lender , in accordance
      with the definition of “settlement service” in § 1024.2 , or the servicer chooses to place the discretionary
      payment in the escrow account . If a servicer has not established an escrow account for a federally
      related mortgage loan and only receives payments for discretionary items, this section is not applicable.
      [ 76 FR 78981 , Dec. 20, 2011, as amended at 78 FR 10875 , Feb. 14, 2013; 81 FR 72370 , Oct. 19,
      2016] CFR Toolbox Law about... Articles from Wex Table of Popular Names Parallel Table of Authorities
      Accessibility About LII Contact us Advertise here Help Terms of use Privacy
    drafter_attestation: Verbatim subsection of 12 CFR §1024.17 from Cornell LII snapshot 04a6a051fa8cbc09;
      body isolated between nav and notes; substring-verified.
  judgment: false
