12 CFR §1024.34 — Timely escrow payments and treatment of escrow account balances

reg-x-1024-34

Regulation X §1024.34 requires (a) timely escrow disbursements on or before the deadline to avoid a penalty per §1024.17(k), and (b) refund of any remaining escrow balance within 20 days (excluding legal public holidays, Saturdays, and Sundays) of payoff.

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Verbatim regulatory text (3)

Verbatim provisions from 12 CFR §1024.34 — Timely escrow payments and treatment of escrow account balances — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

12 CFR §1024.34(a)

(a) Timely escrow disbursements required. If the terms of a mortgage loan require the borrower to make payments to the servicer of the mortgage loan for deposit into an escrow account to pay taxes, insurance premiums, and other charges for the mortgaged property , the servicer shall make payments from the escrow account in a timely manner, that is, on or before the deadline to avoid a penalty , as governed by the requirements in § 1024.17(k) .

Source: 12 CFR §1024.34(a) · source URL · snapshot f9b46e171f8bfdba

12 CFR §1024.34(b)

(b) Refund of escrow balance —(1) In general. Except as provided in paragraph (b)(2) of this section, within 20 days (excluding legal public holi days , Satur days , and Sun days ) of a borrower's payment of a mortgage loan in full, a servicer shall return to the borrower any amounts remaining in an escrow account that is within the servicer 's control . (2) Servicer may credit funds to a new escrow account. Notwithstanding paragraph (b)(1) of this section, if the borrower agrees, a servicer may credit any amounts remaining in an escrow account that is within the servicer 's control to an escrow account for a new mortgage loan as of the date of the settlement of the new mortgage loan if the new mortgage loan is provided to the borrower by a lender that:

Source: 12 CFR §1024.34(a) · source URL · snapshot f9b46e171f8bfdba

12 CFR §1024.34(i)

(i) Was also the lender to whom the prior mortgage loan was initially payable; (ii) Is the owner or assignee of the prior mortgage loan ; or (iii) Uses the same servicer that serviced the prior mortgage loan to service the new mortgage loan . 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

Source: 12 CFR §1024.34(a) · source URL · snapshot f9b46e171f8bfdba

Operationalizing 12 CFR §1024.34 — Timely escrow payments and treatment of escrow account balances

This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.

Source of record: https://claudeforcompliance.com/regs/reg-x-1024-34/ · register reg-x-1024-34 · Claude for Compliance. Free to read and download; see regulatory updates and methodology.