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$4.34 tax & $8.68 cushion overstated-corrective action?

Home Forums Real Estate Settlement Procedures Act/ Regulation X $4.34 tax & $8.68 cushion overstated-corrective action?

This topic contains 2 replies, has 3 voices, and was last updated by  jholzknecht 4 months, 3 weeks ago.

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  • #14944

    TheBank
    Participant

    An audit found a TRID loan with overstated annual tax amount by $4.34 and the escrow cushion was overstated by $8.68. The loan originated 10/25/18. We will correct the tax amount to be paid, but what is the best way to correct the cushion/monthly escrow payment? Should we go ahead and conduct an annual analysis to correct the monthly payment of escrow? Would that be considered sufficient with the small overages? Or would more be expected?

    #15317

    rcooper
    Keymaster

    I apologize we overlooked your question. Waiting until your annual analysis should be sufficient to deal with the surplus. See 1024.17(f)(2).

    #15570

    jholzknecht
    Keymaster

    Waiting for the annual analysis is sufficient, but you can jump in at any point and do a short cycle to get the payment amount reset and refund the surplus now.

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