source:
  type: regulation
  id: respa-12usc-2609
  authority: 12 U.S.C. §2609 — Limitation on requirement of advance deposits in escrow accounts
  description: 'RESPA escrow-account statute. Imposes (a) limits on the aggregate

    deposit a lender may require at settlement and the monthly deposit

    afterward, plus the one-sixth cushion ceiling; (b) at-least-annual

    shortage notification by the servicer; (c) initial escrow statement

    (closing or 45 days after account established) and annual escrow

    statement (within 30 days after each 12-month cycle); and (d) civil

    penalties for non-delivery of subsec (c) statements.

    '
obligations:
- id: respa-12usc-2609-a
  canonical_id: respa-12usc-2609-a
  section: 12 U.S.C. §2609(a)
  description: '(a): (a) In general A lender, in connection with a federally related mortgage loan , may
    not require the borrower or prospective borrower— (1) to deposit in any escrow account which may be
    established in connection with such loan for the purpose of assuring payment of taxes, insurance premiums,
    or other …'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §2609(a)(1)
    source_class: respa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/2609
    snapshot_id: 09ceaca989134106
    fetched_at: '2026-05-24T16:52:41Z'
    content_hash: sha256:5d56f1d52f9768a797a7b6865fdcb9e9a2eed3d4332f6e7f278ac6cdc436a759
    paragraph_quote: '(a) In general A lender, in connection with a federally related mortgage loan ,
      may not require the borrower or prospective borrower— (1) to deposit in any escrow account which
      may be established in connection with such loan for the purpose of assuring payment of taxes, insurance
      premiums, or other charges with respect to the property, in connection with the settlement, an aggregate
      sum (for such purpose) in excess of a sum that will be sufficient to pay such taxes, insurance premiums
      and other charges attributable to the period beginning on the last date on which each such charge
      would have been paid under the normal lending practice of the lender and local custom, provided
      that the selection of each such date constitutes prudent lending practice, and ending on the due
      date of its first full installment payment under the mortgage, plus one-sixth of the estimated total
      amount of such taxes, insurance premiums and other charges to be paid on dates, as provided above,
      during the ensuing twelve-month period; or (2) to deposit in any such escrow account in any month
      beginning with the first full installment payment under the mortgage a sum (for the purpose of assuring
      payment of taxes, insurance premiums and other charges with respect to the property) in excess of
      the sum of (A) one-twelfth of the total amount of the estimated taxes, insurance premiums and other
      charges which are reasonably anticipated to be paid on dates during the ensuing twelve months which
      dates are in accordance with the normal lending practice of the lender and local custom, provided
      that the selection of each such date constitutes prudent lending practice, plus (B) such amount
      as is necessary to maintain an additional balance in such escrow account not to exceed one-sixth
      of the estimated total amount of such taxes, insurance premiums and other charges to be paid on
      dates, as provided above, during the ensuing twelve-month period: Provided, however, That in the
      event the lender determines there will be or is a deficiency he shall not be prohibited from requiring
      additional monthly deposits in such escrow account to avoid or eliminate such deficiency.'
    drafter_attestation: Verbatim subsection of 12 U.S.C. §2609 from Cornell LII snapshot 09ceaca989134106;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: respa-12usc-2609-b
  canonical_id: respa-12usc-2609-b
  section: 12 U.S.C. §2609(b)
  description: '(b): (b) Notification of shortage in escrow account If the terms of any federally related
    mortgage loan require the borrower to make payments to the servicer (as the term is defined in section
    2605(i) of this title ) of the loan for deposit into an escrow account for the purpose of assuring
    payment of ta…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §2609(a)(1)
    source_class: respa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/2609
    snapshot_id: 09ceaca989134106
    fetched_at: '2026-05-24T16:52:41Z'
    content_hash: sha256:5d56f1d52f9768a797a7b6865fdcb9e9a2eed3d4332f6e7f278ac6cdc436a759
    paragraph_quote: (b) Notification of shortage in escrow account If the terms of any federally related
      mortgage loan require the borrower to make payments to the servicer (as the term is defined in section
      2605(i) of this title ) of the loan for deposit into an escrow account for the purpose of assuring
      payment of taxes, insurance premiums, and other charges with respect to the property, the servicer
      shall notify the borrower not less than annually of any shortage of funds in the escrow account.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §2609 from Cornell LII snapshot 09ceaca989134106;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: respa-12usc-2609-c
  canonical_id: respa-12usc-2609-c
  section: 12 U.S.C. §2609(c)
  description: '(c): (c) Escrow account statements (1) Initial statement (A) In general Any servicer that
    has established an escrow account in connection with a federally related mortgage loan shall submit
    to the borrower for which the escrow account has been established a statement clearly itemizing the
    estimated taxes…'
  type: do
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §2609(a)(1)
    source_class: respa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/2609
    snapshot_id: 09ceaca989134106
    fetched_at: '2026-05-24T16:52:41Z'
    content_hash: sha256:5d56f1d52f9768a797a7b6865fdcb9e9a2eed3d4332f6e7f278ac6cdc436a759
    paragraph_quote: (c) Escrow account statements (1) Initial statement (A) In general Any servicer that
      has established an escrow account in connection with a federally related mortgage loan shall submit
      to the borrower for which the escrow account has been established a statement clearly itemizing
      the estimated taxes, insurance premiums, and other charges that are reasonably anticipated to be
      paid from the escrow account during the first 12 months after the establishment of the account and
      the anticipated dates of such payments. (B) Time of submission The statement required under subparagraph
      (A) shall be submitted to the borrower at closing with respect to the property for which the mortgage
      loan is made or not later than the expiration of the 45-day period beginning on the date of the
      establishment of the escrow account. (C) Initial statement at closing Any servicer may submit the
      statement required under subparagraph (A) to the borrower at closing and may incorporate such statement
      in the uniform settlement statement required under section 2603 of this title . The Bureau shall
      issue regulations prescribing any changes necessary to the uniform settlement statement under section
      2603 of this title that specify how the statement required under subparagraph (A) of this section
      shall be incorporated in the uniform settlement statement. (2) Annual statement (A) In general Any
      servicer that has established or continued an escrow account in connection with a federally related
      mortgage loan shall submit to the borrower for which the escrow account has been established or
      continued a statement clearly itemizing, for each period described in subparagraph (B) (during which
      the servicer services the escrow account), the amount of the borrower’s current monthly payment,
      the portion of the monthly payment being placed in the escrow account, the total amount paid into
      the escrow account during the period, the total amount paid out of the escrow account during the
      period for taxes, insurance premiums, and other charges (as separately identified), and the balance
      in the escrow account at the conclusion of the period. (B) Time of submission The statement required
      under subparagraph (A) shall be submitted to the borrower not less than once for each 12-month period,
      the first such period beginning on the first January 1st that occurs after November 28, 1990 , and
      shall be submitted not more than 30 days after the conclusion of each such 1-year period.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §2609 from Cornell LII snapshot 09ceaca989134106;
      body isolated between nav and notes; substring-verified.
  judgment: false
- id: respa-12usc-2609-d
  canonical_id: respa-12usc-2609-d
  section: 12 U.S.C. §2609(d)
  description: '(d): (d) Penalties (1) In general In the case of each failure to submit a statement to
    a borrower as required under subsection (c), the Secretary shall assess to the lender or escrow servicer
    failing to submit the statement a civil penalty of $50 for each such failure, but the total amount
    imposed on suc…'
  type: dont
  tags:
  - regulator-direct
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: 12 U.S.C. §2609(a)(1)
    source_class: respa-statute
    source_url: https://www.law.cornell.edu/uscode/text/12/2609
    snapshot_id: 09ceaca989134106
    fetched_at: '2026-05-24T16:52:41Z'
    content_hash: sha256:5d56f1d52f9768a797a7b6865fdcb9e9a2eed3d4332f6e7f278ac6cdc436a759
    paragraph_quote: (d) Penalties (1) In general In the case of each failure to submit a statement to
      a borrower as required under subsection (c), the Secretary shall assess to the lender or escrow
      servicer failing to submit the statement a civil penalty of $50 for each such failure, but the total
      amount imposed on such lender or escrow servicer for all such failures during any 12-month period
      referred to in subsection (b) [1] may not exceed $100,000. (2) Intentional violations If any failure
      to which paragraph (1) applies is due to intentional disregard of the requirement to submit the
      statement, then, with respect to such failure— (A) the penalty imposed under paragraph (1) shall
      be $100; and (B) in the case of any penalty determined under subparagraph (A), the $100,000 limitation
      under paragraph (1) shall not apply. ( Pub. L. 93–533, § 10 , Dec. 22, 1974 , 88 Stat. 1728 ; Pub.
      L. 94–205, § 8 , Jan. 2, 1976 , 89 Stat. 1158 ; Pub. L. 101–625, title IX, § 942(a) , Nov. 28, 1990
      , 104 Stat. 4411 ; Pub. L. 104–208, div. A, title II, § 2103(g)(2) , Sept. 30, 1996 , 110 Stat.
      3009–401 ; Pub. L. 111–203, title X, § 1098(8) , July 21, 2010 , 124 Stat. 2104 .) [1] So in original.
      Probably should be subsection “(c)”.
    drafter_attestation: Verbatim subsection of 12 U.S.C. §2609 from Cornell LII snapshot 09ceaca989134106;
      body isolated between nav and notes; substring-verified.
  judgment: false
